M/S NCR CORPORATION INDIA vs. THE DEPUTY DIRECTOR OF INCOME TAX

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 17TH DAY OF MARCH 2015

PRESENT

THE HON'BLE MR. JUSTICE VINEET SARAN

AND

THE HON’BLE MRS. JUSTICE S.SUJATHA

ITA NO.317 OF 2012

BETWEEN

M/S. NCR CORPORATION INDIA PRIVATE LIMITED C/O MR.K.HARIHARAN, PARTNER, HARI & VASU, CHARTERED ACCOUNTANTS 231, “KRISHNA”, 32-A CROSS, 7TH BLOCK, JAYANAGAR, BANGALORE-560 082. ... APPELLANT

(BY MS.MANJULA K.S. ADV., FOR MS. VANI H. ADV.,)

AND

THE DEPUTY DIRECTOR OF INCOME TAX (INTERNATIONAL TAXATION) CIRCLE-1(1), 6TH FLOOR, R.P.BHAVAN, NO.14/3, NRUPATHUNGA ROAD, BANGALORE-560 001.

...RESPONDENT (BY SRI K.V.ARAVIND, ADV.,)

THIS ITA IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED: 22.05.2012 PASSED IN ITA NO.545/BANG/2011, FOR THE ASSESSMENT YEAR 2010-11, PRAYING TO i) FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED

THEREIN ii).ALLOW THE APPEAL AND SET ASIDE THE IMPUGNED ORDER OF THE ITAT PASSED IN ITA NO.545/BANG/2011.

THIS ITA COMING ON FOR ORDERS THIS DAY, VINEET SARAN J. DELIVERED THE FOLLOWING :

JUDGMENT

The Assessee has preferred this appeal against the order passed by the Tribunal dismissing the appeal by order dated 25.05.2012. 2. The substantial questions of law raised in this appeal are as under: “1. Whether on the facts and in the circumstances of the case, the findings of the Appellate Authorities were perverse to the effect that the authorities have held that the payments made by the appellant to NCR Ireland towards purchase of software amounts to payment of royalty under the provisions of the Act without having regard to the provisions of DTAA between India and Ireland? 2. Whether on the facts and in the circumstances of the case, the appellate Tribunal was justified in upholding the orders passed by the respondent under Section 201(1) and Section 201(!A) of the Income

Tax Act, 1961 by treating the appellant as an assessee- in-default? 3. Whether on the facts and in the circumstances of the case, the assessing authority erred in levying surcharge while passing a rectification order without even issuing a show cause notice?”

the Revenue, following the judgment of this Court, no substantial question of law arises for our consideration in this appeal. However, it is submitted that the assessee has preferred Special Leave petition before the Apex Court challenging the said orders. In the event of the assessee succeeding in the appeals, then the Income Tax Officer shall proceed to pass consequential orders under Section 260(1A) of the Income-tax Act, 1961. With this observation, the appeal is dismissed.

Sd/-

JUDGE

Sd/-

JUDGE