SAP Labs India Pvt. Ltd. v. ACIT

44 SOT 156Income Tax Appellate Tribunal2011#1114 most cited

What is SAP Labs India Pvt. Ltd. v. ACIT authority for?

Foreign exchange fluctuation gains or losses are operational in nature and must be included in the computation of the operating margin for both the assessee and comparable companies when determining the Arm's Length Price.

100

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2012 to 2022.

Also referred to as

SAP Labs India v ACIT · 44 SOT 156 · 6 ITR (Trib) 81 · foreign exchange fluctuation gain loss · operating margin computation · Arm's Length Price · transfer pricing adjustment · operational income · comparable companies · section 92C(2) · associated enterprises · TNMM

Also reported as

6 ITR (Trib) 81

Issues it is cited on

functional analysissection 92c(2)working capital adjustmentrelated party transactionarms length pricecomparable companiesmost appropriate methodarm's length priceassociated enterprisestransfer pricing adjustmentassociated enterprisetnmm

Judgments citing SAP Labs India Pvt. Ltd. v. ACIT

ITO 3(2)(4), Mumbai vs. Pangea 3 Legal Data Base Systems P.Ltd, Mumbai

In the result, the appeal of the assessee is partly allowed for statistical purposes, whereas the appeal of the Revenue is dismissed

ITA 1958/MUM/2014[2009-10]Status: DisposedITAT Mumbai06 Mar 2017AY 2009-10

Bench: Shri Amit Shukla & Shri Manoj Kumar Aggarwalassessment Year: 2009-10

For Appellant: Shri Rajan Vora, &For Respondent: Mrs. Malathi Shridharan, CIT DR
Section 143(3)Section 144C(5)

…ure. In support he relied on following decisions: i) HOV Services Ltd. Vs. JCIT (OSD), ITA No. 1969/PN/2013 dated 04.08.2016; ii) DCIT Vs. Federal Mogul Automotive Products (I) Pvt. Ltd., ITA No. 5769/Del/2011 dated. 25.03.2015; iii) SAP Labs India Pvt. Ltd. 44 SOT 156 (Bang) iv) Mylan Laboratories Ltd. Vs. ACIT, ITA lNo. 66/Hyd/2013 dated 10.01.2014 He pointed out that, once the loss on cancellation of forward contract is considered as non-operating, then the operating margin of the assessee will be 10.46% as against 2.85% determined by the TPO. ITA Nos.2128 & 1958/M/2014 12 Pangea3 & Legal Database Systems…

DCIT, Bangalore vs. M/S Sharp Software Development (India) Pvt. Ltd., Bangalore

In the result, the appeal of the revenue and CO of the assessee are partly allowed for statistical purposes

ITA 1109/BANG/2011[2005-06]Status: DisposedITAT Bangalore25 Jan 2017AY 2005-06

Bench: Shri Sunil Kumar Yadav & Shri A.K. Garodia

For Appellant: Shri Chavali Narayan, CAFor Respondent: Sheri M.K. Biju, Addl. CIT (ITAT)-3, DR
Section 10ASection 92C(2)

…the amendments will apply to the cases pending as on 01-04-2009 and this order was passed by AO on 28-11-2008. Even the explanation brought in later also does not apply to the case. He relied on the principles laid down in SAP Labs India Pvt. Ltd., Vs. ACIT [6 ITR (Trib) 81 (ITAT), (Bang)] and DCIT Vs. Synopsis India P. Ltd., in IT(TP)A No. 1107 & 1093/Bang/2011 dt. 08-10-2015 in support. 11.1. We have considered the rival contentions. The order of Ld.CIT(A) is in accordance with the provisons. The issue was analysed by the Co-ordinate Bench in the case of SAP Labs India Pvt. Ltd., Vs. ACIT [6 ITR (Trib) 81 (ITA…

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)

…आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, , , , मुंबई आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण मुंबई मुंबई “ “ “ “ केकेकेके” ” ” ” खंडपीठ मुंबई खंडपीठ खंडपीठ खंडपीठ Income-tax Appellate Tribunal -“K”Bench Mumbai सव"ी सव"ी सव"ी राजे"" सव"ी राजे"" राजे"",लेखा राजे"" लेखा लेखा सद"य लेखा सद"य सद"य एवं सद"य एवं एवं, , , , शि"जीत डे एवं शि"जीत डे शि"जीत डे, "याियक शि"जीत डे "याियक "याियक सद"य "याियक सद"य सद"य सद"य Before S/Shri Rajendra,Accountant Member and Saktijit Dey,Judicial Member आयकर आयकर अपील अपील संसंसंसं/ ITA No.17/Mum/2012 : िनधा"रण िनधा"रण वष" वष"/Assessment Year-2005-06 आयकर आयकर अपील अपील िनधा"रण िनधा"रण व…

ACIT, Bangalore vs. M/S. Synova Innovative Technologies Pvt.Ltd, Bangalore

The appeal of the revenue stands partly allowed in

ITA 36/BANG/2011[2004-05]Status: DisposedITAT Bangalore23 Dec 2016AY 2004-05

Bench: Shri S.K.Yadav & Shri A. K. Garodia

For Appellant: Shri Sharath Rao, CAFor Respondent: Shri Sanjay Kumar, CIT-III
Section 92C(2)

…IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH ‘C’, BANGALORE BEFORE SHRI S.K.YADAV, JUDICIAL MEMBER AND SHRI A. K. GARODIA, ACCOUNTANT MEMBER IT (IT) A Nos.36 & 37(Bang) 2011 (Assessment years : 2011-12) The Asst. Commissioner of Income Tax, Circle-12(3), Rastrothana Bhavan, (Opp:RBI) Nrupathunga Road, Bangalore-560 001 Appellant Vs M/s Synova Innovative Technologies Pvt.Ltd. Survey No.7P & 93P, Electronic City Phase-II, Begur Hobli Taluk, Bangalore -560 100 PAN No.AAFCS4915A Respondent And C.O.No.219(Bang)/2015 (In IT(TP)A Nos.36 & 37(Bang)/2011) (Assessment year : 2004-05) (By Assessee) Revenue by…

DCIT, New Delhi vs. M/S Mckinsey Kinowledge Centre India Pvt. Ltd, Gurgaon

In the result, the appeal of the assessee is partly allowed for

ITA 499/DEL/2016[2011-12]Status: DisposedITAT Delhi15 Dec 2016AY 2011-12

Bench: Shri R.S. Syal, Am & Smt. Beena A. Pillai, Jm Assessment Year : 2011-12 Mckinsey Knowledge Centre Pvt. Ltd., Vs. Dcit, 3Rd Floor, Block-Iii, Circle-16(2), Vatika Business Park, New Delhi. Sector-49, Sohna Road, Gurgaon. Pan: Aaccm2356G Assessment Year : 2011-12 Dcit, Mckinsey Knowledge Circle-16(2), Centre Pvt. Ltd., 3Rd Floor, Block-Iii, New Delhi. Vatika Business Park, Sector-49, Sohna Road, Gurgaon. Pan: Aaccm2356G (Appellant) (Respondent) Assessee By : Shri Porus Kaka, Sr. Advocate & Shri Divesh Chawla, Advocate Department By : Shri Amrendra Kumar, Cit, Dr & Shri Neeraj Kumar, Sr. Dr Date Of Hearing : 13.12.2016 Date Of Pronouncement : 15.12.2016 Order Per R.S. Syal, Am: These Two Cross Appeals – One By The Assessee & The Other By The Revenue - Are Directed Against The Final Assessment Order Dated

For Appellant: Shri Porus Kaka, Sr. Advocate &For Respondent: Shri Amrendra Kumar, CIT, DR &
Section 143(3)Section 144C

…the Special Bench held that such exchange rate fluctuation gain/loss arising from exports cannot be viewed differently from sale proceeds. 67. In the context of transfer pricing, the Bangalore Bench of the Tribunal in SAP Labs India Pvt. Ltd. Vs ACIT (2011) 44 SOT 156 (Bangalore) has held that foreign exchange fluctuation gain is part of operating profit of the company and should be included in the operating revenue. Similar view has been taken in Trilogy E Business Software India (P) Ltd. Vs DCIT (2011) 47 SOT 45 (URO) (Bangalore). The Mumbai Bench of the Tribunal in S. Narendra Vs Addtl. CIT (2013) 32 tax…

Mckinsey Knowledge Centre Pvt. Ltd., Gurgaon vs. DCIT, New Delhi

In the result, the appeal of the assessee is partly allowed for

ITA 154/DEL/2016[2011-12]Status: DisposedITAT Delhi15 Dec 2016AY 2011-12

Bench: Shri R.S. Syal, Am & Smt. Beena A. Pillai, Jm Assessment Year : 2011-12 Mckinsey Knowledge Centre Pvt. Ltd., Vs. Dcit, 3Rd Floor, Block-Iii, Circle-16(2), Vatika Business Park, New Delhi. Sector-49, Sohna Road, Gurgaon. Pan: Aaccm2356G Assessment Year : 2011-12 Dcit, Mckinsey Knowledge Circle-16(2), Centre Pvt. Ltd., 3Rd Floor, Block-Iii, New Delhi. Vatika Business Park, Sector-49, Sohna Road, Gurgaon. Pan: Aaccm2356G (Appellant) (Respondent) Assessee By : Shri Porus Kaka, Sr. Advocate & Shri Divesh Chawla, Advocate Department By : Shri Amrendra Kumar, Cit, Dr & Shri Neeraj Kumar, Sr. Dr Date Of Hearing : 13.12.2016 Date Of Pronouncement : 15.12.2016 Order Per R.S. Syal, Am: These Two Cross Appeals – One By The Assessee & The Other By The Revenue - Are Directed Against The Final Assessment Order Dated

For Appellant: Shri Porus Kaka, Sr. Advocate &For Respondent: Shri Amrendra Kumar, CIT, DR &
Section 143(3)Section 144C

…the Special Bench held that such exchange rate fluctuation gain/loss arising from exports cannot be viewed differently from sale proceeds. 67. In the context of transfer pricing, the Bangalore Bench of the Tribunal in SAP Labs India Pvt. Ltd. Vs ACIT (2011) 44 SOT 156 (Bangalore) has held that foreign exchange fluctuation gain is part of operating profit of the company and should be included in the operating revenue. Similar view has been taken in Trilogy E Business Software India (P) Ltd. Vs DCIT (2011) 47 SOT 45 (URO) (Bangalore). The Mumbai Bench of the Tribunal in S. Narendra Vs Addtl. CIT (2013) 32 tax…

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

…elated party transaction also exceeds 15% of the operating income and 10% of the operating expenses. Therefore, this company cannot be treated as comparable. For such proposition, he relied upon the following decisions:– i) SAP labs India Pvt. Ltd. v/s ACIT, 44 SOT 156; ii) CSR India pvt. Ltd. v/s ITO, 31 taxmann.com 265; iii) Agile Software Enterprise P. Ltd. v/s ITO, 52 taxmann.com 517; iv) Delmia Solution P. Ltd. v/s DCIT, 33 taxmann.com 372; v) L.G. Soft India Pvt. Ltd. v/s DCIT, 35 taxmann.com 202; vi) Huawel Technology India Pvt. Ltd. v/s ITO, IT(TP)A no.1338/ Bang./2010; vii) Tektronix Engineering Devt. I…

Acusus Software India P Ltd, Bangalore vs. Income Tax Officer, Ward-11(1), Bangalore

In the result, both the appeals filed by the assessee as well as revenue are partly allowed

ITA 1105/BANG/2014[2009-10]Status: DisposedITAT Bangalore19 Oct 2016AY 2009-10

Bench: Shri Vijay Pal Rao & Shri S. Jayaraman

For Appellant: Shri. Chavali Narayan, CAFor Respondent: Shri. Sanjai Kumar Verma, CIT (DR)
Section 234BSection 92C

…cannot be said to be one realized from gain/loss of the enterprise and therefore they should be excluded while determining operating cost. On the above issue we find that the Bangalore Bench of ITAT in the case of Sap Labs India (P) Ltd., Vs. ACIT (2011) 44 SOT 156 (Bang.) has taken the view that Foreign Exchange fluctuation gains are required to be directed to accept the claim of the Assessee in this regard. As far as provision for bad debts are concerned, the TPO has accepted that the same would be part of operating expenses provided the same is incurred every year for at least three years and the manne…

DCIT vs. M/S E4E Tech Support (India) Pvt. Ltd

In the result, the appeal of the revenue and C

ITA 1044/BANG/2013[2005-06]Status: DisposedITAT Bangalore18 Oct 2016AY 2005-06

Bench: Shri S.K.Yadav & Shri A. K. Garodia

For Appellant: Shri P. C. Khincha, CAFor Respondent: Shri AR. V. Sreenivasan, JCIT
Section 133(6)

…the amendments will apply to the cases pending as on 01-04-2009 and this order was passed by AO on 28-11-2008. Even the explanation brought in later also does not apply to the case. He relied on the principles laid down in SAP Labs India Pvt. Ltd., Vs. ACIT [6 ITR (Trib) 81 (ITAT), (Bang)] and DCIT Vs. Synopsis India P. Ltd., in IT(TP)A No. 1107 & 1093/Bang/2011 dt. 08-10-2015 in support. 11.1. We have considered the rival contentions. The order of Ld.CIT (A) is in accordance with the provisions. The issue was analysed by the Co-ordinate Bench in the case of SAP Labs India Pvt. Ltd., Vs. ACIT [6 ITR (Trib) 81 (I…

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

ITA 750/DEL/2015[2010-11]Status: DisposedITAT Delhi27 Jun 2016AY 2010-11

Bench: Shri Pramod Kumar & Smt. Beena A. Pillai

For Appellant: Shri G. C. Srivastava, AdvFor Respondent: Shri Amrenda Kumar, CIT DR
Section 140Section 92C

…pecial Bench held that such an exchange rate fluctuation gain/loss arising from exports cannot be viewed differently from the sale proceeds. 34. In the context of transfer pricing, the Bangalore Bench of the Tribunal in SAP Labs India Pvt. Ltd. Vs ACIT (2011) 44 SOT 156 (Bangalore) has held that foreign exchange fluctuation gain is part of operating profit of the company and should be included in the operating revenue. Similar view has been taken in Trilogy E Business Software India (P) Ltd. Vs DCIT (20ll) 47 SOT 45 (URO) (Bangalore). The Mumbai Bench of the Tribunal in S. Narendra Vs Addl.CIT (2013) 32 taxman. c…

Mercedes- Benz Research & Development India Private Limited, Bangalore vs. Asst.C.I.T., Bangalore

In the result, assessee's appeal as well as revenue’s appeal are partly allowed

ITA 291/BANG/2015[2010-11]Status: DisposedITAT Bangalore24 Jun 2016AY 2010-11

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

For Appellant: Shri Nageswar Rao, AdvocateFor Respondent: Shri Muzaffar Hussain, CIT (LTU) (D.R)
Section 143(3)

…transaction though they may form part of the gain/loss of the enterprise and therefore they should be excluded while determining operating cost. On the above issue we find that the Bangalore Bench of ITAT in the case of Sap Labs India (P) Ltd. Vs. ACIT (2011) 44 SOT 156 (Bang.) has taken the view that Foreign Exchange Fluctuation gains are required to be added to operating revenue. Following the same, the AO is directed to accept the claim of the Assessee in this regard.....................”. 5.8.1 In conformity with the above finding, we direct the AO/TPO to consider the foreign exchange gain or loss as part of…

DCIT, Bangalore vs. M/S Sunquest Information Systems (India) Pvt. Ltd., Bangalore

Appeal of the assessee is partly allowed whereas appeal of the Revenue is dismissed

ITA 1604/BANG/2014[2009-10]Status: DisposedITAT Bangalore27 May 2016AY 2009-10

Bench: Shri. Sunil Kumar Yadav & Shri. Abraham P. Georgei.T(Tp).A No.1604/Bang/2014 (Assessment Year : 2009-10) Deputy Commissioner Of Income-Tax, Circle – 6(1)(2), Bangalore .. Appellant V. M/S. Sunquest Information Systems (India) P. Ltd, 1St Floor, Eagle Ridge, Embassy Gold Links Business Park, Off Intermediate Ring Road, Bangalore 560 071 .. Respondent Pan : Aaecs2754E I.T(Tp).A No.1666/Bang/2014 (Assessment Year : 2009-10) (By The Assessee) Assessee By : Shri. K.R. Vasudevan, Advocate Revenue By : Dr. P. K. Srihari, Addl. Cit Heard On : 05.05.2016 Pronounced On : 27 .05.2016 O R D E R Per Abraham P. George:

For Appellant: Shri. K.R. Vasudevan, AdvocateFor Respondent: Dr. P. K. Srihari, Addl. CIT
Section 10Section 92

…Tribunal in the case of Triology E Business Software India P. Ltd v. DCIT [(2013) 147 ITD 540], had held that forex gains / loss are required to be added to the operating revenue relying on another coordinate bench decision in SAP Labs India (P) Ltd, [(2011) 44 SOT 156]. We therefore do not find any error in the directions given by the CIT (A) . Grounds 5 and 6 stand dismissed. 31. To summarise the result, appeal of the assessee is partly allowed whereas appeal of the Revenue is dismissed. Order pronounced in the open court on 27th day of May, 2016. (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER MCN* Copy to: 1. The a…

DCIT vs. M/S Amba Research (India) Pvt. Ltd

In the result, Revenue’s appeal is dismissed

ITA 622/BANG/2013[2008-09]Status: DisposedITAT Bangalore18 Mar 2016AY 2008-09

Bench: Shri B. Ramakotaiah & Shri Narendra Kumar Choudhury

For Appellant: Shri Chavali Narayan, CAFor Respondent: Dr. G. Manoj Kumar, Addl. CIT
Section 10ASection 115J

…business activity and on the billing/billed amount. So, the same is rightly treated as part of operating income. The above principle is upheld in the following cases: i. CISCO Systems (India) P. Ltd., IT(TP)A No. 271/Bang/2014; ii. SAP Labs India P. Ltd., [44 SOT 156 (Bang)]; and iii. CIT Vs. Gem Plus Jewellery India [330 ITR 175 (Mum)]. The Revenue’s ground is accordingly rejected. 9. Ground Nos. 10 & 11 is on the issue of exclusion of Telecommunication Charges for export turnover and total turnover. AO excluded the Telecommunications charges and Travelling charges from estimated turnover. Ld.CIT(A) follow…

ACIT, Bangalore vs. M/S Mcafee Software (India) Pvt. Ltd., Bangalore

In the result, both Assessee’s appeal and Revenue’s appeal are ‘partly allowed’

ITA 4/BANG/2012[2005-06]Status: DisposedITAT Bangalore18 Mar 2016AY 2005-06

Bench: Shri B. Ramakotaiah & Shri Narendra Kumar Choudhury

For Appellant: Shri Suryanarayana, AdvocateFor Respondent: Dr. G. Manoj Kumar, Addl.CIT
Section 10A

…IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH : BANGALORE BEFORE SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER AND SHRI NARENDRA KUMAR CHOUDHURY, JUDICIAL MEMBER IT(TP)A No. 04/Bang/2012 Assessment year : 2005-06 Assistant Commissioner of Vs. M/s. McAfee Software (India) Pvt. Ltd., Income Tax, Embassy Golf Links Business Park, Circle-12(1), Pine Valley, II Floor, Off-Indiranagar, Bangalore Koramangala, Intermediate Ring Road, Bangalore PAN: AABCN3175H APPELLANT RESPONDENT IT(TP)A No.1388/Bang/2011 Assessment year : 2005-06 M/s. McAfee Software (India) Pvt. Ltd., Vs. Income Tax Officer, Embassy Golf Links Business Pa…

Mcafee Software (India) Pvt. Ltd., Bangalore vs. CIT, Bangalore

In the result, both Assessee’s appeal and Revenue’s appeal are ‘partly allowed’

ITA 1388/BANG/2011[2005-06]Status: DisposedITAT Bangalore18 Mar 2016AY 2005-06

Bench: Shri B. Ramakotaiah & Shri Narendra Kumar Choudhury

For Appellant: Shri Suryanarayana, AdvocateFor Respondent: Dr. G. Manoj Kumar, Addl.CIT
Section 10A

…IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH : BANGALORE BEFORE SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER AND SHRI NARENDRA KUMAR CHOUDHURY, JUDICIAL MEMBER IT(TP)A No. 04/Bang/2012 Assessment year : 2005-06 Assistant Commissioner of Vs. M/s. McAfee Software (India) Pvt. Ltd., Income Tax, Embassy Golf Links Business Park, Circle-12(1), Pine Valley, II Floor, Off-Indiranagar, Bangalore Koramangala, Intermediate Ring Road, Bangalore PAN: AABCN3175H APPELLANT RESPONDENT IT(TP)A No.1388/Bang/2011 Assessment year : 2005-06 M/s. McAfee Software (India) Pvt. Ltd., Vs. Income Tax Officer, Embassy Golf Links Business Pa…

Mercedes - Benz Research and Development India Private Limited, Bangalore vs. ACIT, Bangalore

In the result, the appeal is allowed partly for statistical purposes

ITA 1336/BANG/2012[2008-09]Status: DisposedITAT Bangalore16 Mar 2016AY 2008-09

Bench: Shri B. Ramakotaiah & Shri Narendra Kumar Choudhary

For Appellant: Shri Nageshwar Rao, AdvocateFor Respondent: Ms. Neera Malhotra, CIT-II(DR)
Section 133(6)Section 143(3)Section 92C

…transaction though they may form part of the gain/loss of the enterprise and therefore they should be excluded while determining operating cost. On the above issue we find that the Bangalore Bench of ITAT in the case of Sap Labs India (P) Ltd. Vs. ACIT (2011) 44 SOT 156 (Bang.) has taken the view that Foreign Exchange Fluctuation gains are required to be added to operating revenue. Following the same, the AO is directed to accept the claim of the Assessee in this regard.....................”. 5.8.1 In conformity with the above finding, we direct the AO/TPO to consider the foreign exchange gain or loss as part of…

Ameriprise India Pvt. Ltd., Gurgaon vs. DCIT, New Delhi

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

ITA 7014/DEL/2014[2010-11]Status: DisposedITAT Delhi19 Jan 2016AY 2010-11

Bench: : Shri I.C. Sudhir & Shri L.P. Sahu

For Appellant: Sh. Harpreet Singh, Advocate &For Respondent: Sh. Amrendra Kumar, CIT/DR
Section 143(3)Section 144CSection 92C

…he Special Bench held that such exchange rate fluctuation gain/loss arising from exports cannot be viewed differently from sale proceeds. 16.4. In the context of transfer pricing, the Bangalore Bench of the Tribunal in SAP Labs India Pvt. Ltd. Vs ACIT (2011) 44 SOT 156 (Bangalore) has held that foreign exchange fluctuation gain is part of operating profit of the company and should be included in the operating revenue. Similar view has been taken in Trilogy E Business Software India (P) Ltd. Vs DCIT (2011) 47 SOT 45 (URO) (Bangalore). The Mumbai Bench of the Tribunal in S. Narendra Vs Addtl. CIT (2013) 32 taxman.…

M/S Obopay Mobile Technology India Private Limited, Bangalore vs. DCIT, Bangalore

In the result the appeal by the Assessee is partly allowed while the appeal by the Revenue is dismissed

ITA 469/BANG/2015[2010-11]Status: DisposedITAT Bangalore08 Jan 2016AY 2010-11

Bench: Shri N.V. Vasudevan & Shri Abraham P. Georgeit(Tp)A No.469/Bang/2015 Assessment Year : 2010-11 M/S.Obopay Mobile Vs. The Deputy Commissioner Technology India Private Of Income Tax, Circle 5 Limited, Enzyme Jnc Business (1)(2), Bengaluru. Center, 2Nd Floor, Mpk Mansion, No.18, Guava Garden, 5Th Block, Koramangala, Bengaluru-560 095. Pan No. Aaaco9074H Appellant Respondent

For Appellant: Shri Padamchand Khincha, CAFor Respondent: Shri Ms.Neera Malhotra, CIT (DR)
Section 143(3)Section 144CSection 92Section 92CSection 92E

…gain/loss being considered as not forming part of the operating cost, the reasoning of the should be excluded while determining operating cost. On the above issue we find that the Bangalore Bench of ITAT in the case of Sap Labs India (P) Ltd. Vs. ACIT (2011) 44 SOT 156 (Bang.) has taken the view that Foreign Exchange Fluctuation gains are required to be added to operating revenue. Following the same, the AO is directed to accept the claim of the Assessee in this regard. As far as provision for bad debts are concerned, the TPO has accepted that the same would be part of operating expenses provided the same is inc…

DCIT, Bangalore vs. M/S Obopay Mobile Technology India Pvt. Ltd., Bangalore

In the result the appeal by the Assessee is partly allowed while the appeal by the Revenue is dismissed

ITA 388/BANG/2015[2010-11]Status: DisposedITAT Bangalore08 Jan 2016AY 2010-11

Bench: Shri N.V. Vasudevan & Shri Abraham P. Georgeit(Tp)A No.469/Bang/2015 Assessment Year : 2010-11 M/S.Obopay Mobile Vs. The Deputy Commissioner Technology India Private Of Income Tax, Circle 5 Limited, Enzyme Jnc Business (1)(2), Bengaluru. Center, 2Nd Floor, Mpk Mansion, No.18, Guava Garden, 5Th Block, Koramangala, Bengaluru-560 095. Pan No. Aaaco9074H Appellant Respondent

For Appellant: Shri Padamchand Khincha, CAFor Respondent: Shri Ms.Neera Malhotra, CIT (DR)
Section 143(3)Section 144CSection 92Section 92CSection 92E

…gain/loss being considered as not forming part of the operating cost, the reasoning of the should be excluded while determining operating cost. On the above issue we find that the Bangalore Bench of ITAT in the case of Sap Labs India (P) Ltd. Vs. ACIT (2011) 44 SOT 156 (Bang.) has taken the view that Foreign Exchange Fluctuation gains are required to be added to operating revenue. Following the same, the AO is directed to accept the claim of the Assessee in this regard. As far as provision for bad debts are concerned, the TPO has accepted that the same would be part of operating expenses provided the same is inc…

M/S. Rolls- Royce India Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result, this ground

ITA 1310/DEL/2015[2010-11]Status: DisposedITAT Delhi03 Dec 2015AY 2010-11

Bench: Shri S.V. Mehrotra : & Shri A.T. Varkey:Asstt. Yr: 2010-11 Rolls-Royce India Pvt. Ltd., Vs. Dcit, Circle-21(2), 2Nd Floor, Birla Tower West, New Delhi. 25, Barakhamba Road, New Delhi. Pan: Aabcr 5277 Q ( Appellant ) (Respondent) Appellant By : Sh. Pradeep Dinodia Fca & Shri R.K. Kapoor Ca. & Shri Anubhav Jaggi Ca Respondent By : Sh. Amrendra Kumar Cit (Dr) Date Of Hearing : 17/09/2015. Date Of Order : 03/12/2015. O R D E R Per S.V. Mehrotra, A.M..: This Appeal Has Been Preferred By The Assessee Against The Assessment Order Passed By The Dcit, Circle-15(1), New Delhi Pursuant To Drp Directions U/S 143(3)/144C Of The Income-Tax Act, 1961. 2. Following Grounds Have Been Raised: 1. That The Ld. Tpo & Consequently Drp/Ao Has Erred In Law & On Facts In The Circumstances Of The Case In Confirming & Enhancing The Addition On Account Of Arms' Length Price Under Section 92Ca(3) Of The Income-Tax Act Amounting To Rs. 3,71,14,107/- On Wholly Illegal, Erroneous & Untenable Grounds.

For Appellant: Sh. Pradeep Dinodia FCA &For Respondent: Sh. Amrendra Kumar CIT (DR)
Section 143(3)Section 144C(5)Section 92C

…1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “I-1” NEW DELHI BEFORE SHRI S.V. MEHROTRA : ACCOUNTANT MEMBER AND SHRI A.T. VARKEY: JUDICIAL MEMBER Asstt. Yr: 2010-11 Rolls-Royce India Pvt. Ltd., Vs. DCIT, Circle-21(2), 2nd Floor, Birla Tower West, New Delhi. 25, Barakhamba Road, New Delhi. PAN: AABCR 5277 Q ( Appellant ) (Respondent) Appellant by : Sh. Pradeep Dinodia FCA & Shri R.K. Kapoor CA. & Shri Anubhav Jaggi CA Respondent by : Sh. Amrendra Kumar CIT (DR) Date of hearing : 17/09/2015. Date of order : 03/12/2015. O R D E R PER S.V. MEHROTRA, A.M..: This appeal has been preferred by the assessee against…