M/S MERCEDES BENZ RESEARCH vs. ASSISTANT COMMISSIONER OF INCOME - TAX

1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU

ON THE 27TH DAY OF NOVEMBER, 2018

BEFORE

THE HON'BLE MR. JUSTICE RAVI MALIMATH

AND

THE HON’BLE MR. JUSTICE K.NATARAJAN

INCOME TAX APPEAL NO.601 OF 2016 AND INCOME TAX APPEAL NO.1074 OF 2017

BETWEEN:

M/S MERCEDES BENZ RESEARCH AND DEVELOPMENT INDIA PRIVATE LIMITED (A PRIVATE COMPANY LLIMITED BY SHARES INCORPORATED UNDER THE COMPANIES ACT, 1956) HAVING ITS OFFICES AT: WHITEFIELD PALMS PLOT NO.9 & 10 EPIP ZONE, PHASE 1, WHITEFIELD ROAD BENGALURU-560066 ... APPELLANT

(BY SRI:K.MALLAHARAO AND SRI:S.N.ARAVINDA, ADVOCATES)

AND:

ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-4(1)(2), BENGALURU ... RESPONDENT

(BY SRI:JEEVAN J NEERALGI, ADVOCATE)

2 THESE INCOME TAX APPEALS ARE FILED UNDER SECTION 260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 24.06.2016 PASSED IN IT(TP)A NO.291/BANG/2015 ["APPELLANT-ASSESSE'S APPEAL"] AND IN IT(TP)A NO.427/BANG/2015 ["RESPONDENT/ASSESSING OFFICER'S APPEAL"], FOR THE ASSESSMENT YEAR 2010-11, PRAYING THIS HON'BLE COURT TO: (I) ADMIT THE INSTANT APPEAL TO ANSWER THE SUBSTANTIAL QUESTIONS OF LAW SET OUT IN PARA 29 ABOVE; (II) SET ASIDE IMPUGNED ORDER AT ANNEXURE 'A' PASSED BY THE INCOME-TAX APPELLATE TRIBUNAL TO THE EXTENT IT REJECTS APPELLANT'S SELECTION OF COST PLUS METHOD ("CPM")/COMPARABLE UNCONTROLLED PRICE ("CUP") METHOD AND UPHOLDS SELECTION OF TRANSACTIONAL NET MARGIN METHOD ("TNMM") BY TPO AS MOST APPROPRIATE METHOD ("MAM") AND FURTHER TO THE EXTENT IT PERMITS INCLUSION OF INFOSYS LIMITED AS A COMPARABLE TO APPELLANT-ASSESSEE IN IT(TP)A NO.291/BANG/2015 ["APPELLANT-ASSESSE'S APPEAL"] AND IN IT(TP)A NO.427/BANG/2015 ["RESPONDENT/ASSESSING OFFICER'S APPEAL"] BEFORE THE TRIBUNAL FOR ASSESSMENT YEAR 2010-11; DATED 24.06.2016 AND (III) PASS SUCH FURTHER AND OTHER ORDERS IN FAVOUR OF THE APPELLANT AS THIS HON'BLE COURT MAY DEEM FIT TO GRANT, IN THE FACTS AND CIRCUMSTANCES OF THE CASE, AND IN THE INTERESTS OF JUSTICE AND EQUITY.

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THESE INCOME TAX APPEALS COMING ON FOR HEARING THIS DAY, RAVI MALIMATH J., DELIVERED THE FOLLOWING:

3 JUDGMENT

In view of the memo filed in the Court today, the appeals are dismissed as withdrawn.

SD/-

SD/- JUDGE

JUDGE

*bgn/-