M/S. METLIFE GLOBAL OPERATIONS SUPPORT CENTRE PVT. LTD.,NEW DELHI vs. DCIT, NEW DELHI

ITA 6188/DEL/2015Status: DisposedITAT Delhi23 April 2019AY 2011-122 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal noted that the assessment year was covered by the roll-back period of the APA. Consequently, the assessee sought to withdraw the appeal.

What were the facts?

The assessee appealed against a transfer pricing adjustment for AY 2011-12. The assessee had entered into a Bilateral Advanced Pricing Agreement (APA) with the CBDT, which included a roll-back provision covering the assessment year in question.

What were the issues?

The primary issue was the transfer pricing adjustment for IT enabled services. The applicability of the APA's roll-back provision to the assessment year was also a key consideration.

Which sections of the Income-tax Act were involved?

Not specified

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: “I-1”, NEW DELHI

Before: SHRI H.S. SIDHU & SHRI O.P. KANT

For Appellant: Shri Anant Periwal, CA

For Respondent: Shri Sanjay I. Bara, CIT(DR)

Hearing: 11.04.2019Pronounced: 11.04.2019

Date of hearing 11.04.2019 Date of pronouncement 11.04.2019 ORDER PER O.P. KANT, A.M.: This appeal by the assessee is directed against the final assessment order dated 20.10.2015 passed by the Dy. Commissioner of Income Tax, Circle 16(2), New Delhi (hereinafter referred to as ‘the Assessing Officer’) in pursuance to the direction of the Ld. DRP, dated 07.09.2015 for assessment year 2011-12. 2. In the grounds of appeal

, the assessee has contested the transfer pricing adjustment.

3. At the outset, the learned counsel for the assessee, Sh. Anant Periwal, CA, submitted that the assessee has entered into a Bilateral Advanced Pricing Agreement (APA) with the Central Board of Direct Taxes (CBDT) on 29th March, 2019. The relevant APA is applicable to consecutive five years commencing from Financial Year (FY) 2014-15 to FY 2018-19 (relevant to AY 2015- 16 to AY 2019-20) with the roll back years commencing from FY 2010-11 to FY 2013-14 (relevant to AY 2011-12 to AY 2014-15) for the international transaction pertaining to the provision of IT enabled Services (ITeS). According to APA, Arm’s Length Price (ALP) of the covered transaction would be at Operating Profit margin (OP/OC) of 15% in each year of the APA and roll back period.

In view of the assessment year under consideration, being covered by the roll back period, the assessee has sought to withdraw the appeal.

Learned DR, on the other hand, could not controvert the contentions of the learned counsel.

As the assessee has withdrawn the appeal, we dismiss the same as infructuous.

In the result, the appeal of the assessee is dismissed. Order is pronounced in the open court on 11th April, 2019.

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