THE PR. COMMISSIONER OF INCOME TAX CIT (A) vs. 24/7 CUSTOMER PVT LTD

THE PR. COMMISSIONER OF INCOME-TAX, CIT(A) 5TH FLOOR, BMTC BUILDING, 80 FEET ROAD, KORMANGALA, BENGALURU-560095.

THE ASST. COMMISSIONER OF INCOME TAX CIRCLE-2(4) (1), PRESENT ADDRESS, DCIT, CIRCLE -2(1) (1), 2ND FLOOR, BMTC BUILDING, 80 FEET ROAD, KORMANGALA, BENGALURU-560095.

The Revenue is in appeal under Section 260-A of the Income Tax Act, 1961 (for short, ‘the Act’) questioning the correctness and legality of order dated 20.09.2019 passed by the Income Tax Appellate Tribunal, ‘A’ Bench, Bengaluru (for short, ‘Appellate Authority’) in IT(TP)A.No.498/Bang/2015 for the assessment year 2010-11.

This

Whether on the facts an in the circumstances of the case, the Tribunal is right in law in directing to apply RPT filter of 15% when application of 25% RPT is appropriate as per general practice adopted in Transfer Pricing cases across the Country?

Whether on the facts and in the circumstances of the case, the Tribunal is right in law in directing TPO to consider provision for bad and doubtful debts as operating in nature without checking, if these expenses are merely an extraordinary items and are included in the normal course of business over the years?"

Learned counsel for the assessee submits that the tax effect in this appeal is less than Rs.2 Crores and therefore, the appeal should not be entertained at the instance of the revenue in view of the Circular No.09/2024 dated 17.09.2024 issued by the Central Board of Direct Taxes. It is also submitted that the aforesaid Circular binds the revenue.

On the other hand, learned counsel for the revenue submits that he be granted liberty to revive the appeal in case the matter falls within the exceptions under the aforesaid Circular dated 17.09.2024 and Circular No.5/2024 dated 15.03.2024.

In view of the aforesaid submissions, the appeal is disposed of with liberty as prayed for by the learned counsel for the revenue. However, the question of law is kept open to be adjudicated in an appropriate proceeding.