CIT v. Pentair Water India (P.) Ltd.

M/S Software Paradigms Infotech Private Limited, Mysore vs. Assistant Commissioner of Income Tax Circle-1(1), Mysore

Bench: Shri. B.R. Baskaran & Smt. Beena Pillaiit(Tp)A No. 2828/Bang/2017 Assessment Year : 2013-14 M/S. Software Paradigms The Assistant Infotech Pvt. Ltd., Commissioner Of No. 316-318, Spi City, Income Tax, Hebbal Industrial Area, Circle – 1 (1), Mysuru – 570016. Mysuru. Vs. Pan: Aalcs7583C Appellant Respondent Assessee By : Shri G.S. Prashanth, Ca Revenue By : Shri Pradeep Kumar, Cit (Dr) Date Of Hearing : 29-11-2021 Date Of Pronouncement : 27-12-2021 Order Per Beena Pillaipresent Appeal By The Assessee Has Been Filed By Assessee Against The Assessment Order Dated 24.10.2017 Passed By The Acit, Circle – 1 (1), Mysuru U/S. 143(3) R.W. 92Ca R.W. 144C(5) Of The Act For Assessment Year 2013-14 On Following Grounds Of Appeal. 1. The Orders Of The Tpo / Drp / Assessing Officer In So Far As They Are Against The Appellant, Are Opposed To Law, Weight Of Evidence, Natural Justice, Probabilities, Facts & Circumstances Of The Appellant'S Case. 2. The Appellant Denies Itself To Be Assessed On A Total Income Of Rs. 10,50,75,429/- As Against Income Of Rs. 6,77,58,220/- As Declared By The Appellant.

…the case. b) Without prejudice, the authorities below ought to have applied the turnover filter of Rs.1 crore to Rs.200 crores for selection of comparables as held by the Bombay High Court in the case of CIT vs. M/s. Pentair Water India Pvt. Ltd., reported in 381 ITR 216. 9. The authorities below erred in selecting external comparables over internal comparables for ITES segment on the facts of the case. Page 3 of 24 IT(TP)A No. 2828/Bang/2017 10. a) The working capital adjustment of 2.58% in SDS segment made to the ALP margin is very low and needs to be substantially enhanced on the facts of the case. b) The wor…

DCIT, Bangalore vs. M/S Aztec Soft Limited, Bangalore

In the result, the appeal of the revenue is dismissed and the appeal of the assessee is treated as allowed

Bench: Shri B. R. Baskaran & Smt. Beena Pillai

…ein the Tribunal after noticing the decision of the Hon'ble Delhi High Court in the case of Chryscapital Investment Advisors India (P.) Ltd. (supra) and the decision to the contrary in the case of CIT v. Pentair Water India (P.) Ltd. [2016] 69 taxmann.com 180/381 ITR 216 (Bom.) wherein it was held that high turnover is a ground to exclude a company from the list of comparable companies in determining ALP, held that there were contrary views on the issue and hence the view favourable to the Assessee laid down in the case of Pentair Water India (P.) Ltd. (supra) should be adopted. The following were the conclusions…

DCIT, Bangalore vs. Sri. Jivheshwara Credit Co-Operative Society Ltd., Bangalore

In the result, the appeal of the revenue is dismissed and the appeal of the assessee is treated as allowed

Bench: Shri B. R. Baskaran & Smt. Beena Pillai

…ein the Tribunal after noticing the decision of the Hon'ble Delhi High Court in the case of Chryscapital Investment Advisors India (P.) Ltd. (supra) and the decision to the contrary in the case of CIT v. Pentair Water India (P.) Ltd. [2016] 69 taxmann.com 180/381 ITR 216 (Bom.) wherein it was held that high turnover is a ground to exclude a company from the list of comparable companies in determining ALP, held that there were contrary views on the issue and hence the view favourable to the Assessee laid down in the case of Pentair Water India (P.) Ltd. (supra) should be adopted. The following were the conclusions…