FAIR ISSAC INDIA SOFTWARE PRIVATE LIMITED,BANGALORE vs. ASST.C.I.T., BANGALORE

PDF · subscribers
ITA 1522/BANG/2015Status: DisposedITAT Bangalore11 October 2017AY 2011-123 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal allowed the assessee to withdraw the transfer pricing grounds of appeal. It also allowed the ground related to Section 10A deduction, directing the AO to recompute it after reducing foreign travel expenses from total turnover.

What were the facts?

The assessee sought to withdraw transfer pricing grounds of appeal due to an Advance Pricing Agreement (APA) with the CBDT. For another ground, the assessee claimed deduction under Section 10A, arguing travel expenses in foreign currency should be reduced from total turnover.

What were the issues?

Whether transfer pricing grounds of appeal can be withdrawn due to an APA roll-back provision. Whether foreign travel expenses should be reduced from total turnover for Section 10A deduction.

Which sections of the Income-tax Act were involved?

Section 10A

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, ‘B’ BENCH, BANGALORE

Before: SHRI. SUNIL KUMAR YADAV & SHRI A. K. GARODIA

For Appellant: Shri. Priyam Singhania, CA
For Respondent: Ms. Neera Malhotra, CIT-DR-II
Hearing: 21/09/2017Pronounced: 11/10/2017

Assessee by : Shri. Priyam Singhania, CA Revenue by : Ms. Neera Malhotra, CIT-DR-II Date of hearing : 21/09/2017 Date of pronouncement : 11/10/2017 O R D E R Per Sunil Kumar Yadav, JM :

This appeal is preferred by the assessee against the assessment order passed consequent to the order of the DRP on various grounds. The Director of the assessee company has moved an application stating that an agreement was entered upon between the appellant and CBDT on 31.08.2017 and pursuant to the agreement, assessee/appellant is required to give effect to the Advance Pricing Agreement (APA) Roll-back provisions contained in the agreement, as provided under Rule 10RA(4) of the IT Rules, 1962 (‘the Rules’) and in view of the Rule 10RA(4), the assessee’s request for the withdrawal of transfer pricing ground of appeal referred before the Tribunal. It was further stated that transfer pricing grounds of appeal filed before the Tribunal relate to the covered transactions under the APA and accordingly assessee wants to withdraw the IT(TP)A No. 1522/Bang/2015 Page 2 of 3 grounds of appeal from Nos.1 to 8 referred before the Tribunal. The request of the assessee was not objected to by the Revenue. We therefore allow the assessee to withdraw the ground Nos. 1 to 8 relating to transfer pricing issues. Accordingly, ground Nos. 1 to 8 are dismissed as withdrawn.

2. With regard to ground No.9, the learned counsel for the assessee has contended that this ground relate to deduction under section 10A of the IT Act and the issue is squarely covered by judgments of jurisdictional High Court in the case of Tata Elxsi 349 ITR 98. Therefore, the travel expenses incurred in foreign currency also be reduced from the total turnover in order to compute the deduction under section 10A of the Act. The learned DR did not object to the contentions of the assessee and we accordingly allow the ground of the assessee and direct the AO to reduce the travel expenses incurred in foreign currency from the total turnover also and then recompute the deduction under section 10A of the Act.

3.

In the result, appeal of the assessee is partly allowed for statistical purposes. Order pronounced in the open court on this 11th October, 2017.

Sd/- Sd/- (A. K. GARODIA) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER Place : Bangalore Dated : 11/10/2017 /NShylu/*

IT(TP)A No. 1522/Bang/2015 Page 3 of 3

More judgments on Section 10A

All 2,147 judgments and leading authorities on Section 10A →

Recent GST High Court judgments

Search GST case law →