M/S. MICRO FOCUS SOFTWARE INDIA PRIVATE LIMITED,BANGALORE vs. JOINT COMMISSIONER OF INCOME TAX, CIRCLE- 4(1)(2), BANGALORE
What did the Tribunal hold?
The Tribunal accepted the assessee's prayer to withdraw grounds related to ALP as the issues were settled under an Advance Pricing Arrangement (APA). For the remaining ground regarding credit for advance tax, the Tribunal remanded the issue to the Assessing Officer for examination and allowance if found correct.
What were the facts?
The assessee appealed against the final assessment order for AY 2015-16. The primary issues concerned the Arm's Length Price (ALP) for international transactions related to software development, IT-enabled services, and marketing support.
What were the issues?
Whether the ALP determination for international transactions is settled by an APA, and whether credit for advance tax paid should be granted.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “A” BENCH : BANGALORE
Before: SHRI N. V. VASUDEVAN & SHRI CHANDRA POOJARI
Per N. V. Vasudevan, Vice President
This is an appeal by the assessee against the final order of Assessment dated 31.10.2019 passed under section 143(3) r.w.s. 144C(13) of the Income Tax Act, 1961 (hereinafter called ‘the Act’) by the JCIT, Circle 4(1)(2), Bangalore, relating to Assessment Year 2015-16.
At the time of hearing, the learned Counsel for the assessee submitted that the issues raised by the assessee in grounds 1 to 8 of the grounds of appeal before the Tribunal which relates to determination of Arm’s Length Price in respect of international transactions pertaining to rendering software development services, information technology enabled services and marketing support services u/s.92 of the Act, have been settled under the Advanced Pricing Arrangement (APA) between the IT(TP)A No.2619/Bang/2019 Page 2 of 2 assessee and the Department. The aforesaid APA would also cover Assessment Year 2015-16 and the dispute would be settled as per the terms of the APA. The assessee, accordingly, prayed for withdrawal of ground Nos.2 to 8. The prayer of the assessee is accepted and ground Nos.2 to 8 are dismissed as withdrawn.
The learned Counsel for the assessee submitted that in ground No.9, the assessee has sought prayer to grant credit for advance tax paid of Rs.7.25 Crores, claimed in the income tax returns, which was not allowed by the AO. Learned Counsel for the assessee made a prayer that the issue be remanded to the AO to examine the claim of the assessee and if found correct, allow necessary credit. The prayer made by the learned Counsel for the assessee is accepted and the AO is directed to examine the correctness of the claim made by the assessee and if found correct, to allow appropriate credit in accordance with law. Ground No.9 is accordingly treated as allowed for statistical purposes.
In the result, the appeal is treated as allowed for statistical purposes.
Order pronounced in the open court on this 16th day of December, 2020.
More judgments on Section 144C(13)
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- Cornerstone Ondemand International Limited… vs Assistant Commissioner of Income Tax…ITA 4558/MUM/2023[2021-22]Status: Disposed16 Oct 2026AY 2021-22
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