E-Gain Communications (P.) Ltd. v. ITO

23 SOT 385Income Tax Appellate Tribunal2008#2538 most cited

What is E-Gain Communications (P.) Ltd. v. ITO authority for?

Depreciation should be excluded from operating costs when comparing the assessee's profitability with comparables in transfer pricing analysis.

46

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2015 to 2025.

Also referred to as

E-Gain Communications · ITO · 23 SOT 385 · ITAT · transfer pricing · depreciation adjustment · operating costs · comparables · arm's length price · profitability

Also reported as

118 ITD 243

Sections most often in play

Section 143(3)Section 10BSection 144CSection 144C(3)Section 271(1)(c)Section 274Section 37(1)Section 92CA

Issues it is cited on

section 144c(8)installation peconvertible foreign exchangemultiple year datasection 92c(2)captive service providerfar analysissection 14a disallowanceworking capital adjustmentrelated party transactionr&d expendituretested party

Judgments citing E-Gain Communications (P.) Ltd. v. ITO

DCIT 5(1)(1), Mumbai vs. Glenmark Exports Ltd, Mumbai

In the result, appeal of the Revenue is dismissed

ITA 2445/MUM/2017[2008-09]Status: DisposedITAT Mumbai26 Oct 2018AY 2008-09

Bench: Shri R.C.Sharma, Am & Shri Amarjit Singh, Jm It(Tp)A Nos.2445/Mum/2017 & 2446/Mum/2017 (Assessment Year :2008-09 & 2009-10) Dcit – 5(1)(1) Vs. M/S. Glenmark Exports Ltd., Room No.568, 5Th Floor (Now Known As Glenmark Aayakar Bhavan Access Ltd., M.K.Road B/2, Mahalaxmi Chambers Mumbai – 400020 22, Bhulabhai Desai Road Mumbai – 400 026 Pan/Gir No.Aaacg3619C (Appellant) .. (Respondent)

Section 143(3)Section 92C

…ence. Regarding, the risk adjustment, I find that appellant does not bear any risk/ or bear very minimal risk as compared to comparable companies. As Rule 10 B (2) and (3) of the Rules, Further, in the case of E-gain Communication (P.) Ltd. vs. ITO[4], [2009] 118 ITD 243 (Pune), the Tribunal upheld the need to provide for risk in its adjustment in case the taxpayer is not undertaking any risk in its transactions with the parent company. Accordingly, by following the order of E-gain Communication (P) Ltd (Supra), the Ld. AO/TPO is directed to allow 1% risk adjustment which is very reasonable. Accordingly these gro…

Bothra Shipping Services(Currently Known As Bothra Shipping Services (P) Ltd., Kolkata vs. ACIT, Cental Circle-1(1), Kolkata

In the result ground no. 11 & 12 are allowed for statistical purpose

ITA 178/KOL/2017[2010-2011]Status: DisposedITAT Kolkata31 Jul 2018AY 2010-2011

Bench: Sri J. Sudhakar Reddy & Sri Aby T. Varkey) Assessment Year: 2010-11 Assessment Year: 2011-12 Assessment Year: 2012-13 Bothra Shipping Services ......…..…….……………………..…………………………………..……….……..Appellant (Currently Known As Bothra Shipping Services Pvt. Ltd.) Room No. 10 2Nd Floor “Sagar Estate 2 Clive Ghat Street Kolkata – 700 107 [Pan : Aadfb 8479 P] Assistant Commissioner Of Income Tax, Central Circle-1(1), Kolkata.…….......….......Respondent Appearances By: Shri Naresh Jain & Mrs. Arati Debnath, Ar, Appeared On Behalf Of The Assessee. Shri G. Mallikarjuna, Cit, D/R. Appearing On Behalf Of The Revenue. Date Of Concluding The Hearing : June 26Th, 2018 Date Of Pronouncing The Order : July 31St , 2018 Order Per J. Sudhakar Reddy, Am :- All These Appeals Filed By The Assessee Are Directed Against The Separate Orders Passed U/S 144C R.W.S. 143(3) Of The Income Tax Act, 1961 (In Short The ‘Act’). As The Issues Arising In All These Appeals Are Common, For The Sake Of Convenience They Are Heard Together & Disposed Off By Way Of This Common Order. 2. Brief Facts Of This Case Are Brought Out By The Ld. Drp At Page 1 Of His Order Which Is Extracted For Ready Reference:- Bothra India Is Engaged In The Business Of Handling Bulk Cargoes. Its Activities Include Vessel Handling, Stevedoring & Cargo Handling, Clearing & Forwarding & Other Port Related Activities. Jaldhi Overseas Pte Ltd ('Jaldhi Overseas') Engages Bothra India For Vessel Handling At The Port, To Provide Various Vessel Related Services Until The Vessel

Section 143(3)Section 144CSection 153ASection 153BSection 92CSection 92C(3)

…e do not find any infirmity in the finding of CIT (A) while he excluded this company on the turnover criteria following the decision of this tribunal in : Sony India (P.) Ltd. v. Dy. CIT [2008] 114 ITD 448 (Delhi) E-Gain Communication (P.) Ltd. v. ITO [2008] 23 SOT 385 (Pune) Deloittee Consulting India (P.) Ltd. v. Dy. CIT [2013] 144 ITD 451/36 taxmann.com 68 (Hyd.) Genisys Integrating System (India) (P.) Ltd. v. Dy. CIT [2012] 53 SOT 159/20 taxmann.com 715 (Bang.) 6. The said findings of the Tribunal in respect of the said three Companies are on the basis of appreciation of evidence on record. We find no infirm…

The Pr. Commissioner of Income Tax CIT (A) vs. M/S. Capco It Services Pvt Ltd

ITA/481/2017HC Karnataka05 Jul 2018

Bench: S.SUJATHA,VINEET KOTHARI

Section 10ASection 260

…1/15 IN THE HIGH COURT OF KARNATAKA, BENGALURU DATED THIS THE 5th DAY OF JULY 2018 PRESENT THE HON'BLE Dr.JUSTICE VINEET KOTHARI AND THE HON’BLE Mrs.JUSTICE S.SUJATHA I.T.A.No.481/2017 Between: 1. The Pr. Commissioner of Income-tax, CIT(A) 5th floor, BMTC Building 80 Feet Road, Kormangala Bengaluru-560 095. 2. The Income-Tax Officer, Ward-11(1), Present Address Ward-2(1)(2), 2nd Floor BMTC Building, 80 Feet Road Kormangala, Bengaluru-560 095. …Appellants (By Mr. Aravind K.V. Advocate) And: M/s. Capco IT Services Pvt. Ltd., Salarpuria Annexe, 351/…

The Pr. Commissioner of Income Tax, CIT(A) vs. M/S Ids Software Solutions India Pvt. Ltd

ITA/498/2017HC Karnataka02 Jul 2018

Bench: S.SUJATHA,VINEET KOTHARI

Section 10ASection 260

…1/10 IN THE HIGH COURT OF KARNATAKA, BENGALURU DATED THIS THE 2ND DAY OF JULY 2018 PRESENT THE HON’BLE DR.JUSTICE VINEET KOTHARI AND THE HON’BLE MRS.JUSTICE S.SUJATHA I.T.A.No.498/2017 BETWEEN : 1. THE Pr. COMMISSIONER OF INCOME-TAX, CIT[A] 5TH FLOOR, BMTC BUILDING 80 FEET ROAD, KORMANGALA BENGALURU-560095. 2. THE INCOME-TAX Officer WARD-11[2] BENGALURU. ...APPELLANTS (BY SRI K.V.ARAVIND, ADV.) AND : M/s. IDS SOFTWARE SOLUTIONS INDIA PVT. LTD., 6TH FLOOR, TOWER D, DIAMOND DISTRICT AIRPORT ROAD, BENGALURU-560066 PAN: AABCI 2430G.…

Nec Technologies India Ltd, New Delhi vs. Deputy Commissioner of Income-Tax, New Delhi

The appeal of the assessee is allowed

ITA 1102/DEL/2015[2010-11]Status: DisposedITAT Delhi27 Oct 2017AY 2010-11

Bench: Shri N.K. Saini & Shri Kuldip Singh

For Appellant: Shri Ajay Vohra, Senior AdvocateFor Respondent: Shri H.K. Choudhary, CIT DR
Section 143Section 143(3)Section 144CSection 92C(3)

…nter alia that it has insufficient financial or description information to perform analyses; that it has functional dissimilarity because its revenue from subscription as well as sale of licence and relied upon Egain Communication (P.) Ltd. vs. ITO – (2008) 23 SOT 385 (Pune), 3DPLM Software Solutions Ltd. vs. DCIT – ITA No.1303/Bang/2012 and St. Ericson India Pvt. Ltd. vs. ACIT – ITA No.7821/Mum/2011; that Thirdware also owns software/ proprietary products and is also into purchase and sale of licence to earn income. 22 30. The factum of earning of revenue subscription as well as of licence is proved from pag…

DCIT vs. M/S Misys Software Solutions (India), Bangalore

In the result, the appeal of revenue as well as C

ITA 1071/BANG/2013[2008-09]Status: DisposedITAT Bangalore27 Sept 2017AY 2008-09

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Rao

For Appellant: Shri Pramod Singh, CIT (D.R)For Respondent: Shri T. Suryanarayana, Advocate
Section 133(6)Section 92C

…IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH ‘ A ’ BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER I.T. (T.P) A. No.1071/Bang/2013 (Assessment Year : 2008-09) Dy. Commissioner of Income Tax, Circle 12(1), Bangalore. …. Appellant. Vs. M/s. Misys Software Solutions (India) Pvt. Ltd., Eagle Ridge, Embassy Golf Links Business Park, Off IRR, Domlur, Bangalore-560 071. ….. Respondent. C.O. No.22/Bang/2016 (In I.T. (T.P) A. No.1071/Bang/2013) (Assessment Year : 2008-09) (By Assessee) Appellant By : Shri Pramod Singh, CIT (D.R) Respondent By : Shri T. Suryanarayana,…

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

…interest rate charged, since in such cases, the risk of credit default tends to be higher. In this regard, the Appellant places reliance on following rulings: Intervet India Private Limited (2010) (39 SOT 93); and E-Gain Communications Private Limited (2008) (23 SOT 385). 16. Further for undertaking comparability analysis, the TPO has conducted enquiries from CRISIL by exercising powers under section 133(6) of the Act and has proposed to use the rates provided by CRISIL and adjustments suggested by FIMMDA to arrive at the arm's length rate of interest. However, the Appellant wishes to highlight that use of such…

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

…interest rate charged, since in such cases, the risk of credit default tends to be higher. In this regard, the Appellant places reliance on following rulings: Intervet India Private Limited (2010) (39 SOT 93); and E-Gain Communications Private Limited (2008) (23 SOT 385). 16. Further for undertaking comparability analysis, the TPO has conducted enquiries from CRISIL by exercising powers under section 133(6) of the Act and has proposed to use the rates provided by CRISIL and adjustments suggested by FIMMDA to arrive at the arm's length rate of interest. However, the Appellant wishes to highlight that use of such…

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

…interest rate charged, since in such cases, the risk of credit default tends to be higher. In this regard, the Appellant places reliance on following rulings: Intervet India Private Limited (2010) (39 SOT 93); and E-Gain Communications Private Limited (2008) (23 SOT 385). 16. Further for undertaking comparability analysis, the TPO has conducted enquiries from CRISIL by exercising powers under section 133(6) of the Act and has proposed to use the rates provided by CRISIL and adjustments suggested by FIMMDA to arrive at the arm's length rate of interest. However, the Appellant wishes to highlight that use of such…

Tavant Technologies India Private Limited, Bangalore vs. DCIT, Bangalore

In the result, the appeals of assessee are partly allowed

ITA 1592/BANG/2012[2008-09]Status: DisposedITAT Bangalore31 May 2017AY 2008-09

Bench: Shri Arun Kumar Garodia & Shri Vijay Pal Rao

For Appellant: Shri Gurunathan, AdvocateFor Respondent: Shri G.R. Reddy, CIT (DR) (ITAT)-1, Bengaluru
Section 143(3)Section 92C

…Thirdware Solution Ltd., This company was excluded from the list of comparables by this Tribunal in the case of LSI Research (India) (P.) Ltd. (supra) following the decision of Pune Bench of Tribunal in the case of E-Gain Communication (P.) Ltd. v. ITO [2009] 118 ITD 243 (Pune - Trib.) on the ground of functional dissimilarities. The Pune Bench of the Tribunal observed that this company had income from other sources like interest and deposits which jacked up the profit margin of the company. It was also observed that it was into the purchase & sale of software licenses. Thus, ITAT held that it cannot be a compara…

Addl.C.I.T. RG. 5(2), Mumbai vs. C.A. India Technologies Pvt. Ltd., Mumbai

The appeal of the AO is dismissed

ITA 17/MUM/2012[2005-06]Status: DisposedITAT Mumbai04 Jan 2017AY 2005-06
For Appellant: Shri Dhanesh Bafna and Shri Ravi SawnnaFor Respondent: Shri N.K. Chand-CIT
Section 143(3)Section 254(1)

…o trading of software licenses: - Intoto Software India Pvt. Ltd. (ITA No. 1196/Hyd/2010) - ITO v. Colt Technology Services India Pvt. Ltd. (ITA No. 609/Del/2011) - ACIT v. Sonata Software (ITA No. 3514/Mum/2010) - E-Gain Communications (P) Ltd. v. ITO [2008] 23 SOT 385 (Pune). 9. Similarly, the other cases, Bodhtree Consulting Ltd, Four Soft Ltd, Infosys,., Sankhya Infotech Ltd., Thirdware Solutions Ltd, Tata Elexi (seg) etc, are also to be excluded as they are considered and analysed in various cases relied on about functionality and why the same are not comparable to the companies like assessee. Bodhtree consu…

ITO 10(3)(4), Mumbai vs. Keystone Solution P. Ltd, Mumbai

In the result, appeal stands partly allowed for statistical purpose

ITA 4508/MUM/2011[2005-06]Status: DisposedITAT Mumbai19 Oct 2016AY 2005-06

Bench: Shri Saktijit Dey & Shri Ramit Kochar

For Appellant: Shri M. MuzaliFor Respondent: Shri N.K. Chand
Section 92C

…is context, the learned Authorised Representative drew attention of the bench to the financials of the company. In support of his contention, the learned Authorised Representative relied upon the following decisions:– i) E–Gain Communication P. Ltd. v/s ITO, 23 SOT 385; ii) Invensys Development Centre India Pvt. Ltd. v/s ACIT, 43 taxmann.com 419; iii) ACIT v/s Sonata Software Ltd. 55 SOT 533 (Mum.); iv) DCIT v/s Textron Global Technology Centre (P) Ltd., 89 taxmann.com 465; v) DCIT v/s Colt Technology Services India Pvt. Ltd., 34 taxmann.com 182; vi) Adaptec India Pvt. Ltd. v/s ITO, ITA no. 481/Hyd./2011. vii) I…

DCIT, Bangalore vs. M/S Novell Software Development India Pvt. Ltd., Bangalore

In the result, the appeal of the Department is dismissed and the

ITA 281/BANG/2015[2010-11]Status: DisposedITAT Bangalore30 Sept 2016AY 2010-11

Bench: Smt. Asha Vijayaraghavanshri S Jayaramanit(Tp)A No.281 /Bang/2015 (Asst. Year 2010-11) The Dy. Commissioner Of Income-Tax, Circle-5(1)(2), Bangalore. . Appellant Vs. M/S Novell Software Development India Pvt. Ltd., ‘Laurel, ‘Block-D, 65/2, Bagmane Tech Park, C.V Raman Nagar, Byrasandra, Bangalore-560 093. . Respondent

For Appellant: Shri T Suryanarayana, AdvocateFor Respondent: Shri G.R Reddy, CIT
Section 14ASection 40

…justment for depreciation be allowed (Para 7.1.2. at page 11 of the directions). IT(TP)A No.281/B/15 CO No.101/B/15 11 The assessee also places reliance on the judgments of this Hon’ble Tribunal in E-gain Communication Pvt. Ltd. Vs. ITO reported in [2008] 23 SOT 385 (Pune) (at page 36) and Honeywell Technology Solutions Lab P. Ltd., in IT(TP)A No.1344/Bang/2011 at para 5.71.” The decision of Hyderabad Bench ’B’ in the case of Market Tools Research Pvt. Ltd., in ITA No.2066/2011 is to be followed, wherein the Hon’ble JM is a party to the order. The relevant portion is extracted below: All facts which impac…

DCIT vs. M/S Pmc Sierra India Pvt. Ltd., Bangalore

In the result, the revenue’s appeal as well as C

ITA 882/BANG/2013[2008-09]Status: DisposedITAT Bangalore26 Aug 2016AY 2008-09

Bench: Shri Abraham P George & Shri Vijay Pal Rao

For Respondent: Dr.P.K. Srihari, Addl. CIT (D.R.)
Section 10A

…t from the Annual Report that the company has not provided any separate segmental profit and loss account for software development services and product development services. (ii) In the case of E-Gain Communications (P.) Ltd. v. ITO [2009] 118 ITD 243/[2008] 23 SOT 385 (Pune), the Tribunal has directed that this company be omitted as a comparable for software service providers, as its income includes income from sale of licences which has increased the margins of the company. 37 IT(TP)A No.882/Bang/2013 & C.O. No.173/Bang/2015 The learned A.R. prayed that in the light of the above facts and in view of the afore…

M/S. G4S Security Services (India) Pvt. Ltd., Gurgaon vs. ACIT, New Delhi

In the result, appeal filed by the assessee stands allowed for statistical purposes and the appeal filed by the Revenue stands dismissed

ITA 1540/DEL/2012[2007-08]Status: DisposedITAT Delhi03 Aug 2016AY 2007-08

Bench: Shri N. K. Saini & Smt. Beena A. Pillai

For Appellant: Shri Mukesh Bhutani, AdvFor Respondent: shri Neeraj Kumar, Sr. DR
Section 143(2)Section 143(3)Section 144CSection 37(1)Section 92C

…er: i) Qual Core Logic Lt. Vs DCIT 52 SOT 574 (Hyd.) ii) Schefenacker Motherson Ltd. Vs ITO 123 TTJ 509 (Del.) iii) Skoda Auto India (P) Ltd. Vs ACIT 30 SOT 319 (Pune) iv) Sony India (P) Ltd. Vs DCIT 114 ITD 448 (Del.) v) E-Gain Communications (P) Ltd. Vs ITO 23 SOT 385 (Pune) 10 I.T.A.No..1540/Del/2012 vi) Mentor Graphics (Noida) Pvt. Ltd. Vs DCIT 109 ITD 101 (Del.) 9.4 In view of above and respectfully following the ratio laid down by the above decisions of Coordinate Bench of the Tribunal, we are of the considered view that Ld. TPO was wrong in not granting the benefits of extra ordinary expenses as the sam…

M/S Trilogy E- Business Software India Private Limited, Bangalore vs. DCIT, Bangalore

In the result, the appeals of the assessee as well as the revenue are partly allowed

ITA 33/BANG/2013[2008-09]Status: DisposedITAT Bangalore08 Jun 2016AY 2008-09

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Raoi.T. (T.P.) A. No.33/Bang/2013 (Assessment Year : 2008-09) M/S. Trilogy E-Business Software India Pvt. Ltd., No.1/2, Lalitha Nilaya, 4Th Cross, Rmv 2Nd Stage, Bhopsandra, Bangalore-560 094. …. Appellant. Vs. Dy. Commissioner Of Income Tax, Circle 12(4), Bangalore-560 001. ….. Respondent. I.T. (T.P.) A. No.115/Bang/2013 (Assessment Year : 2008-09) (By Revenue) Assessee By : Shri Padam Chand Khincha, C.A. Respondent By : Dr.P.K. Srihari, Addl. Cit (D.R.) Date Of Hearing : 18.5.2016. Date Of Pronouncement : 08.06.2016. O R D E R Per Shri Vijay Pal Rao, J.M. : These Cross Appeals Are Directed Against The Order Dated 6.11.2012 Of Commissioner Of Income Tax (Appeals)-Iv, Bangalore For The Assessment Year 2008-09. 2 It(Tp)A Nos.33 & 115/Bang/2013 2. The Assessee-Company Was Incorporated In June 2000 & Is Wholly Owned Subsidiary Of Versata International Inc., (Previously Known As Trilogy Inc.). During The Financial Year Relevant To The Assessment Year Under Consideration, The Assessee Has Provided Software Development Services As Well As Call Centre Services To Its Associated Enterprises (In Short ‘Aes’). The Assessee Is Compensated On Cost +10% Basis By Its Aes For The Services Provided By The Assessee. The Financial Results Of The Assessee For The Assessment Year Under Consideration Are Recorded By The Transfer Pricing Officer (In Short ‘Tpo’) In Paragraph 2.1 As Under :

For Appellant: Shri Padam Chand Khincha, C.AFor Respondent: Dr.P.K. Srihari, Addl. CIT (D.R.)

…t from the Annual Report that the company has not provided any separate segmental profit and loss account for software development services and product development services. (ii) In the case of E-Gain Communications (P.) Ltd. v. ITO [2009] 118 ITD 243/[2008] 23 SOT 385 (Pune), the Tribunal has directed that this company be omitted as a comparable for software service providers, as its income includes income from sale of licences which has increased the margins of the company. 32 IT(TP)A Nos.33 & 115/Bang/2013 The learned A.R. prayed that in the light of the above facts and in view of the afore cited decision of…

ACIT 8(1), Mumbai vs. Bunge India P. Ltd, Mumbai

ITA 4336/MUM/2009[2005-06]Status: DisposedITAT Mumbai18 May 2016AY 2005-06
For Appellant: Shri Vispi PatelFor Respondent: Shri Debashish Chandra
Section 254(1)Section 92A

…s comparables and not the support service comparables, that the company are also provided caL/Culation of margins from the comparable companies having trading activity.He relied upon the cases of Sony India(P) Ltd (315ITR150-AT),E-gain indications Private Ltd(118 ITD 243)Mentor Graphics (Noida)Private Ltd(109 ITD 101),Dharampal Premchand Ltd(317 ITR 353), Vellore Electric Corporation Ltd.(227 ITR 557), Lokay Holdings (308 ITR 356). 6.We find that with a view to benchmark the international transactions of the MTA,the assessee had carried out detailed comprehensive benchmarking analysis, that it had selected TNMM…

Amd Far East Limited Indian Branch, Bangalore vs. Jdit, Bangalore

In the result, the appeal of the assessee stands partly allowed for statistical purposes

ITA 1282/BANG/2011[2007-08]Status: DisposedITAT Bangalore29 Apr 2016AY 2007-08

Bench: Shri Ak Garodia & Shri Vijaypal Raoassessment Year : 2007-08 Amd Far East Limited – Indian Branch Office Vs. Joint Director Of Income Tax (Since Taken Over By Amd India Private Ltd.), (International Taxation – I, Poddar Heritage Building, Bangalore. 28 Cubbon Road, Bangalore – 560 001. Pan: Aadca 1739L Appellant Respondent Appellant By : Shri P. C. Khincha, C.A. Respondent By : Ms Neera Malhotra, Cit(Dr) Date Of Hearing : 26.04.2016 Date Of Pronouncement : 29.04.2016

For Appellant: Shri P. C. Khincha, C.AFor Respondent: Ms Neera Malhotra, CIT(DR)
Section 133(6)Section 92CSection 92C(3)

…that the depreciation charged by the assessee company is on very higher side and therefore, suitable adjustment is required. In support of this contention, he placed reliance on the following judicial pronouncements:- a) Egain Communication (P) Ltd. vs. ITO, 23 SOT 385 (Pune) Paper Book Pages 452 to 476. b) CIT vs. Rakhra Technologies (P.) Ltd., 15 Taxman.com 266 (P & H) Paper Book Pages 477 to 481. c) M/s ACI Worldwide Solutions (P.) Ltd. vs. DCIT in ITA No. 652/Bang/2012 dated 10.04.2015, Paper Book Pages 489 to 498. 6. Finally he submitted that if these three effects are given than the PLI being Arithmetical…

DCIT vs. M/S Electronics for Imaging India P. Ltd., Bangalore

In the result, the appeal of Revenue is partly allowed, whereas the appeal of assessee is allowed

ITA 285/BANG/2013[2008-09]Status: DisposedITAT Bangalore22 Apr 2016AY 2008-09

Bench: Shri A.K. Garodia & Shri Vijay Pal Rao

For Appellant: Shri Padamchand Khincha, CAFor Respondent: Dr. P.K. Srihari, Addl. CIT (DR)
Section 133(6)Section 234BSection 92C(2)

…t from the Annual Report that the company has not provided any separate segmental profit and loss account for software development services and product development services. (ii) In the case of E-Gain Communications (P.) Ltd. v. ITO [2009] 118 ITD 243/ [2008] 23 SOT 385 (Pune), the Tribunal has directed that this company be omitted as a comparable for software service providers, as its income includes income from sale of licences which has increased the margins of the company. The learned A.R. prayed that in the light of the above facts and in view of the afore cited decision of the Tribunal (supra), this compan…

Electronics for Images India Pvt, . Ltd., Bangalore vs. DCIT

In the result, the appeal of Revenue is partly allowed, whereas the appeal of assessee is allowed

ITA 227/BANG/2013[2008-09]Status: DisposedITAT Bangalore22 Apr 2016AY 2008-09

Bench: Shri A.K. Garodia & Shri Vijay Pal Rao

For Appellant: Shri Padamchand Khincha, CAFor Respondent: Dr. P.K. Srihari, Addl. CIT (DR)
Section 133(6)Section 234BSection 92C(2)

…t from the Annual Report that the company has not provided any separate segmental profit and loss account for software development services and product development services. (ii) In the case of E-Gain Communications (P.) Ltd. v. ITO [2009] 118 ITD 243/ [2008] 23 SOT 385 (Pune), the Tribunal has directed that this company be omitted as a comparable for software service providers, as its income includes income from sale of licences which has increased the margins of the company. The learned A.R. prayed that in the light of the above facts and in view of the afore cited decision of the Tribunal (supra), this compan…