CIT v. Agnity India Technologies (P.) Ltd.

36 Taxmann.com 289High Court2013#568 most cited

What is CIT v. Agnity India Technologies (P.) Ltd. authority for?

The Delhi High Court holds that Infosys Ltd. is not comparable to a captive software development service provider for transfer pricing analysis, given its huge turnover, high profit margins, ownership of intangible intellectual property rights, branded products, and differing risk profile.

171

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2015 to 2026.

Also referred to as

CIT v. Agnity India Technologies (P.) Ltd. · Agnity India Technologies · transfer pricing · comparable companies · Infosys comparability · captive service provider · software development · intangible intellectual property rights · turnover filter · risk profile · functional comparability · associated enterprises

Also reported as

219 Taxmann 2693 DTR 375

Sections most often in play

Section 10B(3)Section 10(B)(2)Section 10B(2)(a)Section 12(4)Section 133(6)Section 143(3)Section 144BSection 144C(13)

Issues it is cited on

captive service providerworking capital adjustmentfar analysisrelated party transactioncomparable companiestested partytransactional net margin methodmost appropriate methodintangible assetsassociated enterprisessection 10atnmm

Judgments citing CIT v. Agnity India Technologies (P.) Ltd.

Amba Research (India) Private Limited, Bangalore vs. DCIT, Bangalore

In the result, appeal of the assessee is treated as partly allowed

ITA 286/BANG/2015[2010-11]Status: DisposedITAT Bangalore09 Mar 2016AY 2010-11

Bench: Shri. Abraham P. George & Shri. Vijay Pal Raoi.T(Tp).A No.286/Bang/2015 (Assessment Year : 2010-11) Amba Research (India) P. Ltd, 7Th Floor, Elixir Chancery Building, Municipal Door No.135/1-2, Residency Road, Bangalore 560 025 .. Appellant Pan : Aaeca9391H V. Deputy Commissioner Of Income-Tax, Circle -1(1)(1), Bangalore .. Respondent Assessee By : Shri. Chavali Narayan, Ca Revenue By : Ms. Neera Malhotra, Cit Heard On : 09.02.2016 Pronounced On : 09.03.2016 O R D E R Per Abraham P. George:

For Appellant: Shri. Chavali Narayan, CAFor Respondent: Ms. Neera Malhotra, CIT
Section 144C

…IT(TP)A.286/Bang/2016 Page - 1 IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH 'B', BANGALORE BEFORE SHRI. ABRAHAM P. GEORGE, ACCOUNTANT MEMBER AND SHRI. VIJAY PAL RAO, JUDICIAL MEMBER I.T(TP).A No.286/Bang/2015 (Assessment Year : 2010-11) Amba Research (India) P. Ltd, 7th floor, Elixir Chancery Building, Municipal door No.135/1-2, Residency Road, Bangalore 560 025 .. Appellant PAN : AAECA9391H v. Deputy Commissioner of Income-tax, Circle -1(1)(1), Bangalore .. Respondent Assessee by : Shri. Chavali Narayan, CA Revenue by : Ms. Neera Malhotra, CIT Heard on : 09.02.2016 Pronounced on : 09.03.2016 O R D E R…

Momentive Performance Materials (India) Private Limited, Bangalore vs. Asst.C.I.T., Bangalore

In the result, ground.8 and additional ground raised by the assessee are partly allowed for statistical purpose

ITA 250/BANG/2015[2010-11]Status: DisposedITAT Bangalore09 Mar 2016AY 2010-11

Bench: Shri. Abraham P. George & Shri. Vijay Pal Raoi.T(Tp).A No.250/Bang/2015 (Assessment Year : 2010-11) Momentive Performance Materials (India) P. Ltd, Survey No.6, Electronic City West, Hosur Road, Bangalore 560 008 .. Appellant Pan : Aaacg9931F V. Asst. Commissioner Of Income-Tax, Circle -4(1)(2), Bangalore .. Respondent I.T(Tp).A No.423/Bang/2015 (Assessment Year : 2010-11) (By The Revenue) Assessee By : Shri. T. Suryanarayana, Advocate Revenue By : Shri. G. R. Reddy, Cit – Dr-I Heard On : 09.02.2016 Pronounced On : 09.03.2016 O R D E R Per Abraham P. George:

For Appellant: Shri. T. Suryanarayana, AdvocateFor Respondent: Shri. G. R. Reddy, CIT – DR-I
Section 144CSection 92C

…IT(TP)A250 & 423/Bang/2015 Page - 1 IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH 'A', BANGALORE BEFORE SHRI. ABRAHAM P. GEORGE, ACCOUNTANT MEMBER AND SHRI. VIJAY PAL RAO, JUDICIAL MEMBER I.T(TP).A No.250/Bang/2015 (Assessment Year : 2010-11) Momentive Performance Materials (India) P. Ltd, Survey No.6, Electronic City West, Hosur Road, Bangalore 560 008 .. Appellant PAN : AAACG9931F v. Asst. Commissioner of Income-tax, Circle -4(1)(2), Bangalore .. Respondent I.T(TP).A No.423/Bang/2015 (Assessment Year : 2010-11) (By the Revenue) Assessee by : Shri. T. Suryanarayana, Advocate Revenue by : Shri. G. R. Red…

M/S Citrix R & D I P Ltd, Bangalore vs. Deputy Commissioner of Income Tax, Bangalore

In the result, the appeal of the assessee is treated as partly allowed

ITA 1289/BANG/2014[2009-10]Status: DisposedITAT Bangalore19 Feb 2016AY 2009-10

Bench: Shri Abraham P George & Shri Vijay Pal Rao

For Appellant: Shri P.K.Prasad, CAFor Respondent: Smt. S.Praveena, Addl.CIT
Section 92C

…IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE ‘B’ BENCH, BANGALORE BEFORE SHRI ABRAHAM P GEORGE, ACCOUNTANT MEMBER AND SHRI VIJAY PAL RAO, JUDICIAL MEMBER IT(TP)A No.1289(BNG.)/2014 (Assessment year : 2009-10) M/s Citrix R&D India Pvt. Ltd. Prestige Dynasty No.33, Ulsoor Road, Bangalore-560 042 PAN No.AABCN3639C Appellant Vs The Deputy Commissioner of Income Tax, Circle-11(2), Bangalore Respondent Assessee by : Shri P.K.Prasad, CA Revenue by : Smt. S.Praveena, Addl.CIT Date of hearing : 11-02-2016 Date of pronouncement : 19-02-2016 O R D E R PER SHRI ABRAHAM P GEORGE, AM; In this appeal filed by the…

Headstrong Services India Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeal is partly allowed

ITA 6200/DEL/2012[2008-09]Status: DisposedITAT Delhi11 Feb 2016AY 2008-09

Bench: Shri R.S. Syal, Am & Shri Kuldip Singh, Jm Assessment Year : 2008-09

For Appellant: Shri Nageswar Rao &For Respondent: Shri Amrendra Kumar, CIT,DR
Section 10ASection 143(3)Section 144C

…t the assessee is a captive unit rendering services to its AE alone without acquiring any intellectual property rights in the work done by it in the development of software. The Hon’ble Delhi High Court in CIT vs. Agnity India Technologies (P) Ltd. (2013) 219 Taxmann 26 (Del) considered the giantness of Infosys Ltd., in terms of risk profile, nature of services, number of employees, ownership of branded products and brand related profits, etc. in comparison with such factors prevailing in the case of Agnity India Technologies Pvt. Ltd., being, a captive unit providing software development services without…

DCIT vs. M/S Igs Imaging Services India Pvt. Ltd

ITA 470/BANG/2013[2008-09]Status: DisposedITAT Bangalore10 Feb 2016AY 2008-09

Bench: Shri. N. V. Vasudevan & Shri. Abraham P. Georgei.T(Tp).A No.470/Bang/2013 (Assessment Year : 2008-09) Deputy Commissioner Of Income-Tax, Circle -11(4), Bangalore ..Appellant V. M/S. Igs Imaging Services (I) P. Ltd, (Now Indecomm Global Services (I) P. Ltd) 30, Indecomm House, Laskar, Hosur Road, Audugodi, Bangalore 560 030 ..Respondent Pan : Aabci2902H Cross Objection No.150/Bang/2015 (In I.T(Tp).A No.470/Bang/2013) (Assessment Year : 2008-09) Assessee By : Shri. K. R. Vasudevan, Advocate Revenue By : Shri. G. R. Reddy, Cit – Dr-I Heard On : 07.01.2016 Pronounced On : 10 .02.2016 O R D E R Per Abraham P. George:

For Appellant: Shri. K. R. Vasudevan, AdvocateFor Respondent: Shri. G. R. Reddy, CIT – DR-I
Section 10ASection 92C

…d for inclusion or exclusion of companies in a comparability study. Hon'ble Bombay High Court had IT(TP)A.470/Bang/2013 Page - 12 CO No.150/Bang/2015 followed earlier decision of Hon'ble Delhi High Court in the case of CIT v. Agnity India Technologies P. Ltd [93 DTR 375]. No doubt Hon'ble Delhi High Court in the case of Cryscapital Investment Advisors India P. Ltd (supra) had taken a different line of thinking that exceptionally high profit margins or fluctuating profits margin or turnover would by itself may not be a reason for exclusion. However in view of the judgment of Bombay High Court in the case of Pentai…

Ion Trading India Private Limited, New Delhi vs. Income Tax Officer, New Delhi

In the result, the appeal is disposed off as above

ITA 1035/DEL/2015[2010-11]Status: DisposedITAT Delhi07 Dec 2015AY 2010-11

Bench: Shri R.S. Syal & Shri A.T. Varkey

For Appellant: Shri Manoj Pardasani, CAFor Respondent: Shri Amrendra Kumar, CIT DR
Section 144C(13)Section 144C(5)Section 92C(3)

…IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘I - 1’ : NEW DELHI) BEFORE SHRI R.S. SYAL, ACCOUNTANT MEMBER and SHRI A.T. VARKEY, JUDICIAL MEMBER ITA No.1035/Del./2015 (ASSESSMENT YEAR : 2010-11) M/s. ION Trading India Private Ltd., vs. ITO, Ward 12(4), A-136, Defence Colony, New Delhi. New Delhi (PAN : AAECA4325R) (APPELLANT) (RESPONDENT) ASSESSEE BY : Shri Manoj Pardasani, CA REVENUE BY : Shri Amrendra Kumar, CIT DR Date of Hearing : 09.09.2015 Date of Pronouncement : 07.12.2015 O R D E R PER A.T. VARKEY, JUDICIAL MEMBER : This appeal arises from an order passed by Income Tax Officer, Ward 12(4), New…

DCIT, Bangalore vs. M/S Ikanos Communication India Pvt. Ltd., Bangalore

In the result, both the appeal of the Revenue as well as cross objection of the assessee are dismissed

ITA 137/BANG/2015[2010-11]Status: DisposedITAT Bangalore10 Nov 2015AY 2010-11

Bench: Shri. Abraham P. George & Shri. Vijaypal Raoi.T(It).A No.137/Bang/2015 (Assessment Year : 2010-11) Deputy Commissioner Of Income Tax, Circle -3(1)(1), Bangalore .. Appellant V. M/S. Ikanos Communication India Pvt. Ltd, 3Rd Floor, Corporate Miller, No.332/1, Thimmaiah Road, Vasanthnagar, Bangalore 560 052 .. Respondent Pan : Aabci1928F Cross Objection No.109/Bang/2015 (In I.T(It).A No.137/Bang/2015) (Assessment Year : 2010-11) (By The Assessee) Assessee By : Shri. Ajit Tolani, Ca Revenue By : Shri. Sanjay Kumar, Cit - Iii Heard On : 27.10.2015 Pronounced On : 10.11.2015 O R D E R Per Abraham P. George: These Are Appeal & Cross Objection By The Revenue & Assessee Respectively, Directed Against An Assessment Made By The Ao U/S.143(3) Of It(Tp)A.137/Bang/2015 & Co.109/Bang/2015 Page - 2

For Appellant: Shri. Ajit Tolani, CAFor Respondent: Shri. Sanjay Kumar, CIT - III
Section 10ASection 143(3)Section 144C

…erused the orders and heard the rival contentions. It is not disputed that Infosys brand has a significant intangible value and it had revenue from software product segment also. Hon’ble Delhi High Court in the case of CIT v. Agnity India Technologies P. Ltd [93 DTR 375], while affirming a decision of this Tribunal where it was held that Infosys Ltd could not be considered as a comparable, had upheld the view that it was a giant company in the area of development of software, assuming all risks IT(TP)A.137/Bang/2015 & CO.109/Bang/2015 Page - 5 leading to higher profits. Further in the case of Pegasystems Worldw…

Bentley Systems India Pvt. Ltd., New Delhi vs. ACIT, New Delhi

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

ITA 6161/DEL/2013[2009-10]Status: DisposedITAT Delhi04 Nov 2015AY 2009-10

Bench: Smt Diva Singh & Shri Inturi Rama Rao

…the assessee is only a captive unit rendering services to its AE alone without acquiring any intellectual property rights in the work done by it in the development of software. The Hon’ble Delhi High Court in CIT vs. Agnity India Technologies (P) Ltd. (2013) 219 Taxmann 26 (Del) considered the giantness of Infosys Ltd., in terms of risk profile, nature of services, number of employees, ownership of branded products and brand related profits, etc. in comparison with such factors prevailing in the case of Agnity India Technologies Pvt. Ltd., being, a captive unit providing software development services without hav…

Sun Life India Service Centre Pvt. Ltd., Gurgaon vs. DCIT, Gurgaon

In the result, the appeal is partly allowed

ITA 1489/DEL/2014[2009-10]Status: DisposedITAT Delhi28 Sept 2015AY 2009-10

Bench: Shri R.S. Syal, Am & Smt. Beena A. Pillai, Jm Assessment Year : 2009-10

For Appellant: Shri G.C. Srivastava, AdvocateFor Respondent: Shri Amrendra Kumar, CIT, DR
Section 144C(13)

…assessee is simply a captive unit rendering services to its AE alone without acquiring any intellectual property rights in the work done by it in the development of software. The Hon’ble Delhi High Court in CIT vs. Agnity India Technologies (P) Ltd. (2013) 219 Taxmann 26 (Del) considered the giantness of Infosys Ltd., in terms of risk profile, nature of services, number of employees, ownership of branded products and brand related profits, etc. in comparison with the factors prevailing in the case of Agnity India Technologies Pvt. Ltd., being, a captive unit providing software development services without h…

Novo Nordisk India Private Limited vs. DCIT, Bangalore

In the result the appeal of the Assessee is partly allowed

ITA 146/BANG/2015[2010-11]Status: DisposedITAT Bangalore30 Jul 2015AY 2010-11

Bench: Shri N.V. Vasudevan & Shri Abraham P.George

For Appellant: Shri Nageshwar Rao, AdvocateFor Respondent: Shri R. Ravichandran, CIT-III (DR)
Section 143(3)Section 144CSection 92ASection 92E

…IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH : BANGALORE BEFORE SHRI N.V. VASUDEVAN, JUDICIAL MEMBER AND SHRI ABRAHAM P.GEORGE, ACCOUNTANT MEMBER IT(TP)A No.146/Bang/2015 Assessment year : 2010-11 M/s.Novo Nordisk India Pvt. Ltd. Vs. The Deputy Commissioner of Plot No.32, 47-50, Income Tax, EPIP Area, Whitefield, Circle 5(1)(2), Bangalore – 560 066. Bangalore. PAN: AAACN 7425M APPELLANT RESPONDENT Appellant by : Shri Nageshwar Rao, Advocate Respondent by : Shri R. Ravichandran, CIT-III (DR) Date of hearing : 06.07.2015 Date of Pronouncement : 30.07.2015 O R D E R Per N.V. Vasudevan, Judicial Member IT(…

ACIT, Bangalore vs. M/S Iron Mountain Information Management India (P) Ltd., Bangalore

ITA 445/BANG/2012[2005-06]Status: DisposedITAT Bangalore30 Jul 2015AY 2005-06

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

For Appellant: Shri P.Dhivahar, JCIT(DR)For Respondent: Shri L. Bharath, CA
Section 10ASection 10B

…IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH : BANGALORE BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER and SHRI JASON P BOAZ, ACCOUNTANT MEMBER IT(TP)A No.445/Bang/2012 (Assessment year: 2005-06) Asst. Commissioner of Income-tax, Circle 11(4), Bangalore. … Appellant Vs. M/s.Iron Mountain Information Management India (P) Ltd., (Earlier known as M/s.Stratify S/w India P.Ltd) 2nd floor, Tower 3, Hibiscus, Vrindavana Tech Village, Marathahalli, Outer Ring Road, Varthur HO, Bangalore-560037. … Respondent PAN:AABCP 0220 B Appellant by: Shri P.Dhivahar, JCIT(DR) Respondent by: Shri L. Bharath, CA. Date of hearin…