Aztec Software And Technology v. ACIT

294 ITR 32High Court2007#7824 most cited

What is Aztec Software And Technology v. ACIT authority for?

Appellate authorities can delete adjustments made by tax authorities on account of the Arm's Length Price (ALP) only if they are satisfied that the ALP submitted by the assessee is fair and reasonable. Simply finding fault with the revenue's determination of transfer price is insufficient to delete additions.

14

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2015 to 2017.

Also referred to as

Aztec Software And Technology · 294 ITR 32 · Arm's Length Price · ALP · Transfer Price · International Transactions · Section 92(1) · ITAT · Appeal · Tax Authorities · Assessee · Addition

Judgments citing Aztec Software And Technology v. ACIT

British Marine Plc-India Branch, Mumbai vs. DCIT (It) 1(3)(2)

In the result, the appeal is allowed for statistical purposes

ITA 1908/MUM/2016[2011-12]Status: DisposedITAT Mumbai27 Oct 2017AY 2011-12

Bench: Shri Mahavir Singh () & Shri N.K. Pradhan () Assessment Year: 2011-12 M/S British Marine Plc- Dcit(It)-1(3)(2) India Branch Mumbai. Vs. 903, ‘C’ Wing, 215, Antrium, Next To Courtyard, Marriot, A.K. Road, Andheri (E) Mumbai-400065 Pan No. Aaaco6627Q Appellant Respondent Assessee By : Shri Jiger Saiya & Shri Darshan Dalal, Ar Revenue By : Shri V. Jenardhenan, Dr Date Of Hearing : 31/07/2017 Date Of Pronouncement : 27/10/2017

For Appellant: Shri Jiger Saiya &For Respondent: Shri V. Jenardhenan, DR
Section 143(3)Section 144CSection 92C

…(P) Ltd. (2016) 385 ITR 0612 (Bom), the Hon’ble Bombay High Court has held ‘applying consistent filter of 25% or less of related party transaction alone shall be considered comparable.’ (vi) Segmentation vs. Aggregation In Aztec Software & Technology v. ACIT (294 ITR 32-Bang ITAT), it is held that ‘ALP to be determined on transaction by transaction basis and not on aggregate basis.’ M/s British Marine PLC India Branch 17 It has been held in LG Soft India (P.) Ltd. DCIT (2014) 48 taxmann.com 237 (Bangalore-Trib.) that in absence of segmental details, a company cannot be taken into account for comparability analys…

D.E. Shaw India Advisory Services Pvt. Ltd., New Delhi vs. DCIT, New Delhi

Appeals of the assessee stand partly allowed in terms of our specific observations and

ITA 1681/DEL/2015[2010-11]Status: DisposedITAT Delhi04 Sept 2017AY 2010-11

Bench: Shri R.K. Panda & Shri Sudhanshu Srivastavaay: 2010-11 Ay: 2011-12 Ay: 2012-13 D.E. Shaw India Advisory Services Pvt. Ltd., Vs Dcit, E-20, 1St & 2Nd Floor, Circle 7(1), Main Market, Hauz Khas, New Delhi. New Delhi-110016 (Pan: Aabce6097P) (Appellant) (Respondent) Appellant By : Shri Kapil Hirani, Ca Shri Suresh Tolani, Adv. Shri Darpan Kirpalani Respondent By : Shri T.M. Shivakumar, Cit ( Dr)

For Appellant: Shri Kapil Hirani, CAFor Respondent: Shri T.M. Shivakumar, CIT ( DR)
Section 143(3)Section 144CSection 92D

…esult in correct assessment of income relating to the 'international transactions', (mandated by S.92(1) of IT Act) III. It is submitted that the following observations Hon’ble Special Bench of ITAT in the case of Aztec Software And Technology vs ACIT (2007) 294 ITR 32 (Bang) supports the above proposition: 133………..Having regard to the purpose of the legislation and application of similar enactment world over, it must further be held that adjustments made on account of ALP by tax authorities can be deleted in appeal only if the appellate authorities are satisfied and records a finding that ALP submitted by the a…

M/S D.E. Shaw India Advisory Services Pvt. Ltd., New Delhi vs. JCIT, New Delhi

Appeals of the assessee stand partly allowed in terms of our specific observations and

ITA 75/DEL/2017[2012-13]Status: DisposedITAT Delhi04 Sept 2017AY 2012-13

Bench: Shri R.K. Panda & Shri Sudhanshu Srivastavaay: 2010-11 Ay: 2011-12 Ay: 2012-13 D.E. Shaw India Advisory Services Pvt. Ltd., Vs Dcit, E-20, 1St & 2Nd Floor, Circle 7(1), Main Market, Hauz Khas, New Delhi. New Delhi-110016 (Pan: Aabce6097P) (Appellant) (Respondent) Appellant By : Shri Kapil Hirani, Ca Shri Suresh Tolani, Adv. Shri Darpan Kirpalani Respondent By : Shri T.M. Shivakumar, Cit ( Dr)

For Appellant: Shri Kapil Hirani, CAFor Respondent: Shri T.M. Shivakumar, CIT ( DR)
Section 143(3)Section 144CSection 92D

…esult in correct assessment of income relating to the 'international transactions', (mandated by S.92(1) of IT Act) III. It is submitted that the following observations Hon’ble Special Bench of ITAT in the case of Aztec Software And Technology vs ACIT (2007) 294 ITR 32 (Bang) supports the above proposition: 133………..Having regard to the purpose of the legislation and application of similar enactment world over, it must further be held that adjustments made on account of ALP by tax authorities can be deleted in appeal only if the appellate authorities are satisfied and records a finding that ALP submitted by the a…

D.E. Shaw India Advisory Services Pvt. Ltd., New Delhi vs. DCIT, New Delhi

Appeals of the assessee stand partly allowed in terms of our specific observations and

ITA 1018/DEL/2016[2011-12]Status: DisposedITAT Delhi04 Sept 2017AY 2011-12

Bench: Shri R.K. Panda & Shri Sudhanshu Srivastavaay: 2010-11 Ay: 2011-12 Ay: 2012-13 D.E. Shaw India Advisory Services Pvt. Ltd., Vs Dcit, E-20, 1St & 2Nd Floor, Circle 7(1), Main Market, Hauz Khas, New Delhi. New Delhi-110016 (Pan: Aabce6097P) (Appellant) (Respondent) Appellant By : Shri Kapil Hirani, Ca Shri Suresh Tolani, Adv. Shri Darpan Kirpalani Respondent By : Shri T.M. Shivakumar, Cit ( Dr)

For Appellant: Shri Kapil Hirani, CAFor Respondent: Shri T.M. Shivakumar, CIT ( DR)
Section 143(3)Section 144CSection 92D

…esult in correct assessment of income relating to the 'international transactions', (mandated by S.92(1) of IT Act) III. It is submitted that the following observations Hon’ble Special Bench of ITAT in the case of Aztec Software And Technology vs ACIT (2007) 294 ITR 32 (Bang) supports the above proposition: 133………..Having regard to the purpose of the legislation and application of similar enactment world over, it must further be held that adjustments made on account of ALP by tax authorities can be deleted in appeal only if the appellate authorities are satisfied and records a finding that ALP submitted by the a…

Citicorp Maruti Finance Ltd., New Delhi vs. DCIT, New Delhi

ITA 4634/DEL/2010[2006-07]Status: DisposedITAT Delhi11 May 2017AY 2006-07

Bench: Shri N.K. Saini & Shri Sudhanshu Srivastavaay: 2006-07 Citicorp Maruti Finance Ltd., Vs Dcit, 4Th Floor, Jeevan Bharti Building, Circle-3(1), 124, Parliament Street, New Delhi. Connaught Circus, New Delhi-110001 (Pan: Aaacc5029L) (Appellant) (Respondent) Appellant By : Shri C.S. Aggarwal, Sr. Adv., Ms Pushpa Sharma, Adv. Respondent By : Shri Piyush Jain, Cit Dr Order

For Appellant: Shri C.S. Aggarwal, Sr. Adv., Ms Pushpa Sharma, AdvFor Respondent: Shri Piyush Jain, CIT DR
Section 143(3)Section 92C

…the assessee’s appeal was concerned, the burden of determination of ALP as well as proper documentation was on the assessee which the assessee had failed to do. Reliance was placed on the following judicial precedents:- Aztec Software And Technology vs ACIT 294 ITR 32 (AT) UCB India (P) Limited Vs. ACIT (2009) 121 ITD 131, ACIT Vs. Golawala Diamonds 44 SOT 645 CA Computer Associates India Pvt. Ltd. Vs. DCIT- order dated 28.1.2010 of ITAT, Mumbai. 4.1 It was further submitted that the transactions accepted in the hands of the AE would not necessarily mean that ALP has been accepted in the case of the asses…

Rayban Sun Optics India Ltd., Gurgaon vs. DCIT, New Delhi

In the result, this appeal of the assessee is allowed for statistical purposes

ITA 891/DEL/2015[2010-11]Status: DisposedITAT Delhi24 Mar 2017AY 2010-11

Bench: Shri J. S. Reddy & Shri Amit Shuklaassessment Year : 2009-10 Rayban Sun Optics India Ltd., Dcit, Circle- 15(1), 7Th Floor, Tower 9B, New Delhi. Vs. Dlf Cyber Greens, Gurgaon. Pan : Aaacb 2586 M (Appellant) (Respondent) Assessment Year : 2010-11 Rayban Sun Optics India Ltd., Dcit, Circle- 21(1), 7Th Floor, Tower 9B, New Delhi. Vs. Dlf Cyber Greens, Gurgaon. Pan : Aaacb 2586 M (Appellant) (Respondent)

For Appellant: Shri Nageswar Rao, AdvFor Respondent: Shri T. M. Shivakumar, CIT(DR)
Section 143(3)Section 144C

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “I-2”, NEW DELHI BEFORE SHRI J. S. REDDY, ACCOUNTANT MEMBER AND SHRI AMIT SHUKLA, JUDICIAL MEMBER Assessment Year : 2009-10 RayBan Sun Optics India Ltd., DCIT, Circle- 15(1), 7th Floor, Tower 9B, New Delhi. Vs. DLF Cyber Greens, Gurgaon. PAN : AAACB 2586 M (Appellant) (Respondent) Assessment Year : 2010-11 RayBan Sun Optics India Ltd., DCIT, Circle- 21(1), 7th Floor, Tower 9B, New Delhi. Vs. DLF Cyber Greens, Gurgaon. PAN : AAACB 2586 M (Appellant) (Respondent) Appellant by : Shri Nageswar Rao, Adv. Respondent by : Shri T. M. Shivakumar, CIT(DR) Date of hearin…

The DCIT1(1), Indore vs. M/S. Agrawal Coal Corporation P Ltd., Indore

ITA 622/IND/2015[2010-11]Status: DisposedITAT Indore08 Mar 2017AY 2010-11

Bench: Shri D.T. Garasia & Shri O.P. Meena

…in Singapore and India. Nevertheless the tax avoidance as a motive need not be established in transfer pricing proceedings as held by 5 member special ITAT Bangalore bench in the case of Aztec Software And Technology vs. ACIT (2007 107 lTD 141 Bang, 2007 294 ITR 32 Bang). The unambiguous language of the IT Act, the international transaction has to be carried out at Arm's length price and the Assessing Officer/TPO is neither supposed to enquire in the tax structures of the tax jurisdiction involved nor required to demonstrate the shifting of income to other tax jurisdiction. 2.3.1. The ld. DR submitted th…

The DCIT-1(1), Indore vs. M/S. Agrawal Coal Corporation P. Ltd., Indore

ITA 607/IND/2015[2009-10]Status: DisposedITAT Indore08 Mar 2017AY 2009-10

Bench: Shri D.T. Garasia & Shri O.P. Meena

…in Singapore and India. Nevertheless the tax avoidance as a motive need not be established in transfer pricing proceedings as held by 5 member special ITAT Bangalore bench in the case of Aztec Software And Technology vs. ACIT (2007 107 lTD 141 Bang, 2007 294 ITR 32 Bang). The unambiguous language of the IT Act, the international transaction has to be carried out at Arm's length price and the Assessing Officer/TPO is neither supposed to enquire in the tax structures of the tax jurisdiction involved nor required to demonstrate the shifting of income to other tax jurisdiction. 2.3.1. The ld. DR submitted th…

M/S. Agrawal Coal Corporation P. Ltd., Indore vs. The DCIT -Circle 1(1), Indore

ITA 602/IND/2015[2010-11]Status: DisposedITAT Indore08 Mar 2017AY 2010-11

Bench: Shri D.T. Garasia & Shri O.P. Meena

…in Singapore and India. Nevertheless the tax avoidance as a motive need not be established in transfer pricing proceedings as held by 5 member special ITAT Bangalore bench in the case of Aztec Software And Technology vs. ACIT (2007 107 lTD 141 Bang, 2007 294 ITR 32 Bang). The unambiguous language of the IT Act, the international transaction has to be carried out at Arm's length price and the Assessing Officer/TPO is neither supposed to enquire in the tax structures of the tax jurisdiction involved nor required to demonstrate the shifting of income to other tax jurisdiction. 2.3.1. The ld. DR submitted th…

M/S. Agrawal Coal Corporation P. Ltd., Indore vs. The DCIT Range 1(1), Indore

ITA 601/IND/2015[2009-10]Status: DisposedITAT Indore08 Mar 2017AY 2009-10

Bench: Shri D.T. Garasia & Shri O.P. Meena

…in Singapore and India. Nevertheless the tax avoidance as a motive need not be established in transfer pricing proceedings as held by 5 member special ITAT Bangalore bench in the case of Aztec Software And Technology vs. ACIT (2007 107 lTD 141 Bang, 2007 294 ITR 32 Bang). The unambiguous language of the IT Act, the international transaction has to be carried out at Arm's length price and the Assessing Officer/TPO is neither supposed to enquire in the tax structures of the tax jurisdiction involved nor required to demonstrate the shifting of income to other tax jurisdiction. 2.3.1. The ld. DR submitted th…

ITO 3(1)(4), Mumbai vs. Everlon Synthetics P.Ltd, Mumbai

In the result, the appeal filed by the Revenue in ITA N0

ITA 6965/MUM/2013[2006-07]Status: DisposedITAT Mumbai23 May 2016AY 2006-07

Bench: Shri Saktijit Dey & Shri Ramit Kocharआयकर अपील सं./I.T.A. No. 6965/Mum/2013 ("नधा"रण वष" / Assessment Year : 2006-07) Income Tax Officer 3(1)(4), M/S Everlon Synthetics बनाम/ R. No. 666, Pvt. Ltd., V. Aayakar Bhawan,M.K. Road, 67, Regent Chambers, Mumbai – 400 020. 208 Nariman Point, Mumbai – 400 021 "थायी लेखा सं./Pan : Aaace0860H (अपीलाथ" /Appellant) .. (""यथ" / Respondent)

Section 115JSection 139Section 143(3)Section 147Section 148Section 148(2)

…based on possession of tangible material / information with the AO having live nexus and close link with the formation of belief that the income has escaped assessment. The assessee company relied on the following decisions to support its proposition’s:- (1) 294 ITR 32 (Bom) IL&Fs Investment Managers Ltd. v. ACIT (2) (2009)318 ITR 295 (Del) Carlton Overseas (P) Ltd. v. CIT ITA 6965/Mum/2013 8 (3) 65 DTR (Guj) 385 Cardila Healthcare Ltd. v. ACIT Thus, the assessee company requested the learned CIT(A) that the notice u/s 148 of the Act is defective and should be treated as invalid. It was also submitted that t…

M/S Herbalife International India Pvt. Ltd., Bangalore vs. ACIT

In the result, IT(TP)A No

ITA 184/BANG/2013[2008-09]Status: DisposedITAT Bangalore09 Oct 2015AY 2008-09

Bench: Shri Vijay Pal Rao & Shri Jason P Boaz

For Appellant: Shri Rajan Vora, CAFor Respondent: Shri Anurag Sahay, CIT(DR)
Section 143(3)Section 32(1)(ii)Section 40A(2)Section 92C

…A of the Act and hence the same should not be evaluated under the provisions of sec.40A(2) of the Act. In support of his contention, he has relied upon the decision of the special bench of the Tribunal in the case of Aztex Software & Technology Services Ltd. (294 ITR 32). 10.3 On the other hand, learned DR has relied upon the orders of the authorities below and submitted that the AO has made the additions only as an alternative measure apart from TP adjustment. 10.4 We have considered the rival submissions as well as the relevant material on record. This transaction of payment of IT(TP)A Nos.1679/Bang/2012 & 18…

Herbalife International India Private Limited, Bangalore vs. ACIT, Bangalore

In the result, IT(TP)A No

ITA 1679/BANG/2012[2008-09]Status: DisposedITAT Bangalore09 Oct 2015AY 2008-09

Bench: Shri Vijay Pal Rao & Shri Jason P Boaz

For Appellant: Shri Rajan Vora, CAFor Respondent: Shri Anurag Sahay, CIT(DR)
Section 143(3)Section 32(1)(ii)Section 40A(2)Section 92C

…A of the Act and hence the same should not be evaluated under the provisions of sec.40A(2) of the Act. In support of his contention, he has relied upon the decision of the special bench of the Tribunal in the case of Aztex Software & Technology Services Ltd. (294 ITR 32). 10.3 On the other hand, learned DR has relied upon the orders of the authorities below and submitted that the AO has made the additions only as an alternative measure apart from TP adjustment. 10.4 We have considered the rival submissions as well as the relevant material on record. This transaction of payment of IT(TP)A Nos.1679/Bang/2012 & 18…

M/S. I Gate Global Solutions Ltd., Bangalore vs. The Assistant Commissioner of Income Tax, Bangalore

In the result, the assessee’s appeal is partly allowed

ITA 1239/BANG/2010[2006-07]Status: DisposedITAT Bangalore30 Jul 2015AY 2006-07

Bench: Smt. P. Madhavi Devi & Shri Jason P Boaz

For Appellant: Shri Padamchand Khincha, CAFor Respondent: Shri G.Sudhakar Rao, CIT(DR)
Section 10ASection 143(3)Section 14ASection 92C(2)

…therefore need no adjudication. 3. As regards the grounds of appeal No.2 to 5 are concerned, we find that they are covered against the assessee by the decision of the Special Bench of the Tribunal in the case of Aztec Software and Technology vs. ACIT (2007) 294 ITR 32 (Bang). Therefore, these grounds are accordingly rejected. 4. Coming to grounds No.6 & 7 which are against determination of arms’ length price (ALP) as regards the rate of interest charged by the assessee on loans advanced by it to its Associated Enterprises (AEs) at Germany and USA, brief facts of the case are as under: The assessee is a softw…