M/S FUTURES FIRST INFO SERVICES PRIVATE LTD.,NEW DELHI vs. ACIT, NEW DELHI

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ITA 6803/DEL/2015Status: DisposedITAT Delhi16 August 2018AY 2011-123 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 TPO had passed a rectification order deleting the transfer pricing adjustment. The assessee requested to withdraw the appeal as it had become infructuous.

What were the facts?

The assessee filed an appeal challenging a transfer pricing adjustment. The assessee later sought to withdraw the appeal as the TPO had passed a rectification order deleting the adjustment.

What were the issues?

Whether the appeal has become infructuous due to a subsequent rectification order by the TPO.

Which sections of the Income-tax Act were involved?

Section 92C(2),Section 154,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘I-1’, NEW DELHI

For Appellant: Adv. &
Hearing: 14.08.2018Pronounced: 16.08.2018

ORDER

Per N. K. Saini, AM:

1.

This is an appeal by the assessee against the order dated 30.10.2015 passed by the AO u/s 143(3) of the Income Tax Act, 1961.

2.

During the course of hearing, the ld. Counsel of the assessee submitted that he has the instruction to withdraw this appeal and gave in writing as under: “MAY IT PLEASE YOUR HONOURS We on behalf of the aforementioned Appellant submit as under: It is respectfully submitted that the instant appeal was filed by the Appellant challenging the impugned transfer pricing adjustment carried out by the learned TPO/AO vide its order dated 27.10.2015 amounting to INR 8,83,34,659, in respect 2 Futures First Info Services Pvt. Ltd. of the provisions of Information Technology enabled Support Services ("ITeS") ("Impugned TP Adjustment"). Ld. TPO, while carrying out the impugned TP adjustment, inadvertently failed to realize that the arm's length price of the international transaction fell within the permissible statutory range of +/- 5% of the transaction price, in terms of the second proviso to section 92C(2) of the Income-tax Act, 1961 ("IT Act"), as it existed during the subject assessment year, and hence the ITeS transaction did not merit any transfer pricing adjustment. As such, the Appellant had filed an application under section 154 of the IT Act before the TPO, pointing out this inadvertent apparent error. It is submitted that the TPO has passed a rectification order dated 16.09.2016 ("Rectification Order") deleting the transfer pricing adjustment in relation to the subject assessment year for the reasons explained above. Copy of the Rectification Order is enclosed as Annexure A. Under the circumstances, it is respectfully submitted that the captioned appeal has become infructuous and accordingly, the Appellant most humbly seeks liberty to withdraw the captioned appeal. It is therefore submitted that this Hon'ble Bench may kindly treat the captioned appeal as withdrawn.” Prayed Accordingly, For Ms/. Futures First Services Private Limited Sd/- August 14,2018 (Authorized Representative) 3. In his rival submissions, the ld. DR did not object if the appeal is dismissed as withdrawn.

4.

In view of the above, the appeal of the assessee is dismissed as withdrawn.

3 Futures First Info Services Pvt. Ltd. 5. In the result, the appeal filed by the assessee is dismissed. (Order Pronounced in the Court on 16/08/2018)

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