SAP Labs India Pvt. Ltd. v. ACIT

Indigra Exports Pvt. Limited, Bangalore vs. DCIT, Bangalore

Appeal of the Revenue is dismissed whereas appeal of assessee is allowed for statistical purpose

Bench: Smt. Asha Vijayaraghavan & Shri. Abraham P. Georgei.T(Tp).A No.309/Bang/2015 (Assessment Year : 2010-11) Indigra Exports P. Ltd, 46, 2Nd Floor, Cc Villa, Ejipura Main Road, Viveknagar Post, Bangalore 560095 .. Appellant Pan : Aaaci3513M V. Deputy Commissioner Of Income-Tax, Circle -11(4), Bangalore .. Respondent I.T(Tp).A No.193/Bang/2015 (Assessment Year : 2010-11) (By The Revenue) Assessee By : Shri. C. J. Brito, Ca Revenue By : Shri. Sanjay Kumar, Cit-Iii Heard On : 13.10.2015 Pronounced On : 10.11.2015 O R D E R Per Abraham P. George: These Are Appeals Filed By The Assessee & Revenue Respectively Against An Assessment Order Dt.25.02.2014 Passed Pursuant To Directions Of Drp U/S.144C Of The Income-Tax Act, 1961 (‘The Act’ In Short).

…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. 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 Biesse Manufacturing Company Private Limited, Bangalore vs. Asst.C.I.T., Bangalore

In the result, Revenue’s appeal for Assessment Year 2010-11 is treated as partly allowed for statistical purposes

Bench: Shri Vijaypal Rao & Shri Jason P. Boazi.T.(T.P.)A. No.97/Bang/2015 (Assessment Year : 2010-11) M/S. Biesse Manufacturing Co. Vs. Asst. Commissioner Of Income Pvt. Ltd., Tax, Sy.No.32, No.469, Jakkasandra Village, Circle 2(1)(1), Sondekappa Road, Nelamangala Taluk, Bengaluru-1. Bengaluru Ruraldistrict-562 123 Pan Aaccb 7928D Appellant Respondent. I.T.(T.P.)A. No.493/Bang/2015 (Assessment Year : 2010-11) (By Revenue) Assessee : Shri K.K. Chythanya, Advocate. Revenue By : Shri Ganapati R Bhat,Cit-Iii (D.R) Date Of Hearing : 10.09.2015. Date Of Pronouncement : 6.11.2015. O R D E R Per Shri Jason P. Boaz, A.M. : These Are Cross Appeals, One By The Assessee & The Other By Revenue, Directed Against The Final Order Of Assessment For Assessment Year 2010-11 Passed Under Section 143(3) Rws 144C(13) Of The Income Tax Act, 1961 (In Short 'The Act') Vide Order Dt.31.12.2014, In Pursuance Of The Directions Issued By The Dispute Resolution Panel (‘Drp’) Under Section 144C(5) Of The Act Dt.21.11.2014. 2. The Facts Of The Case, Briefly, Are As Under :- 2.1 The Assessee Company Is Engaged In The Manufacturing & Trading Of Wood Working Machinery, Spare Parts & Tools & Also Provides Software Testing, Technical Design & Marketing Services To Its Parent Company, Biesse Spa, Italy. The Assessee

…NXP Semi Conductors India Pvt. Ltd. in IT(TP)A No.1662/Bang/2014 dt.12.8.2015 which has followed the decisions of earlier co-ordinate bench of this Tribunal in the case of Triology E-Business Software India Pvt. Ltd. (supra) and Sap Labs India (P) Ltd. (2011) 44 SOT 156 (Bang). 16.3 We have heard the rival contentions and perused and carefully considered the material on record; including the judicial decisions cited and placed reliance upon. We observe that it has not been disputed that the foreign exchange gain/loss has arisen as a consequence of the realization of the consideration in the course of business ope…

DCIT, Bangalore vs. M/S Guhring India Pvt. Ltd., Bangalore

In the result, Revenue’s appeal for Assessment Year 2010-11 is dismissed

…NXP Semi Conductors India Pvt. Ltd. in IT(TP)A No.1662/Bang/2014 dt.12.8.2015 which has followed the decisions of earlier co-ordinate bench of this Tribunal in the case of Triology E-Business Software India Pvt. Ltd. (supra) and Sap Labs India (P) Ltd. (2011) 44 SOT 156 (Bang). 5.3 We have heard the rival contentions and perused and carefully considered the material on record; including the judicial decisions cited and placed reliance upon. We observe that it has not been disputed that the foreign exchange gain/loss has arisen as a consequence of the realization of the consideration in the course of business oper…

DCIT, Bangalore vs. Synopsis India Pvt. Ltd., Bangalore

Bench: Smt. Asha Vijayaraghavan & Shri. Abraham P. Georgei.T(Tp).A No.1107/Bang/2011 (Assessment Year : 2005-06) Deputy Commissioner Of Income-Tax, Circle – 12 (3), Bangalore ..Appellant V. Synopsis India P. Ltd, Rmz Infinity Tower Á’, 4Th & 5Th Floor, No.3, Old Madras Road, Benniganahalli, Bangalore 560016 ..Respondent Pan : Aabcs8847D I.T(Tp).A No.1093/Bang/2011 (Assessment Year : 2005-06) (By The Assessee) Assessee By : Shri. Dhanesh Bafna, Ca Revenue By : Shri. Farhat Hussain Qureshi, Cit -Dr Heard On : 08.09.2015 Pronounced On : 08.10.2015 O R D E R Per Abraham P. George:

…IT(TP)A.1107 & 1093/Bang/2011 Page - 1 IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH 'B', BANGALORE BEFORE SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER AND SHRI. ABRAHAM P. GEORGE, ACCOUNTANT MEMBER I.T(TP).A No.1107/Bang/2011 (Assessment Year : 2005-06) Deputy Commissioner of Income-tax, Circle – 12 (3), Bangalore ..Appellant v. Synopsis India P. Ltd, RMZ Infinity Tower Á’, 4th & 5th floor, No.3, Old Madras Road, Benniganahalli, Bangalore 560016 ..Respondent PAN : AABCS8847D I.T(TP).A No.1093/Bang/2011 (Assessment Year : 2005-06) (By the Assessee) Assessee by : Shri. Dhanesh Bafna, CA Revenue by : Shri. Farh…

DCIT vs. M/S Electronics for Imaging India Pvt. Ltd

In the result, appeal of the Revenue and cross objection of the assessee are dismissed

Bench: Smt. Asha Vijayaraghavan & Shri. Abraham P. Georgei.T(Tp).A No.876/Bang/2013 (Assessment Year : 2004-05) Deputy Commissioner Of Income-Tax, Circle 11(3), Bangalore ..Appellant V. M/S. Electronics For Imaging India P. Ltd, Kalyani Platina, 4Th Floor, Block –I, 24, Epip Zone, Phase –Ii, Whitefield, Bangalore 560 066 ..Respondent Pan : Aaacg6053E Cross Objection No.167/Bang/2015 I.T(Tp).A No.876/Bang/2013 (Assessment Year : 2004-05) (By The Assessee) Assessee By : Shri. Padam Chand Khindha, Ca Revenue By : Dr. P. K. Srihari, Addl. Cit Heard On : 08.09.2015 Pronounced On : 30.09.2015 O R D E R Per Abraham P. George:

…nd liabilities. These causes and factors were operating in nature, as per paragraph 134 on page 46 of OECD Draft Guidelines on Transactional Profit Methods. Reliance was placed on the decision of the Bengaluru bench of the hon’ble ITAT in the case of Sap Labs 6 ITR (Trib) 81, where it was held that foreign exchange gain needed to be considered as operating in nature while determining the ALP.” Considering the nature of activities of assessee and the nature of revenues earned by it from software development activities rendered abroad, we are of the opinion that the foreign exchange gain could have been construed…

Software Ag Bangalore Technologies Private Limited, Bangalore vs. ITO, Bangalore

In the result, the appeal by the Assessee is partly allowed

Bench: Shri N. V. Vasudevan & Shri.Abraham P.Georgeit(Tp)A No.1306/Bang/2011 Assessment Year : 2007-08

…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. 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…

Deputy Commissioner of Income Tax, Circle-12(3), Bangalore vs. M/S Software Ag Bangalore Technolgies P Ltd, Bangalore

In the result, both the appeals by the assessee and the Revenue are partly allowed

Bench: Shri N.V. Vasudevan & Shri S. Rifaur Rahman

…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. 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…

Software Ag Bangalore Techn Pvt Ltd., Bangalore vs. Deputy Commissioner of Income Tax, Bangalore

In the result, both the appeals by the assessee and the Revenue are partly allowed

Bench: Shri N.V. Vasudevan & Shri S. Rifaur Rahman

…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. 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…

Deputy Commissioner of Income Tax, Bangalore vs. M/S Vvidia Graphics P Ltd, Bangalore

In the result, the appeal by the assessee is partly allowed

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

…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.1118/Bang/2014 Assessment year : 2009-10 The Deputy Commissioner Vs. M/s. Nvidia Graphics Pvt. Ltd., 9th & 10th Floor, L6 Block, of Income Tax, Circle 12(2), Manyata Embassy Business Park, Bangalore. Outer Ring Road, Bangalore – 560 045. PAN : AABCN 9200H APPELLANT RESPONDENT IT(TP)A No.1087/Bang/2014 Assessment year : 2009-10 M/s. Nvidia Graphics Pvt. Ltd., Vs. The Deputy Commissioner of Bangalore – 560 045. Income Tax, PAN : AABCN 9200H Circle 12(2),…

Nvidia Graphics Private Ltd, Bangalore vs. Deputy Commissioner of Income Tax, Bangalore

In the result, the appeal by the assessee is partly allowed

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

…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.1118/Bang/2014 Assessment year : 2009-10 The Deputy Commissioner Vs. M/s. Nvidia Graphics Pvt. Ltd., 9th & 10th Floor, L6 Block, of Income Tax, Circle 12(2), Manyata Embassy Business Park, Bangalore. Outer Ring Road, Bangalore – 560 045. PAN : AABCN 9200H APPELLANT RESPONDENT IT(TP)A No.1087/Bang/2014 Assessment year : 2009-10 M/s. Nvidia Graphics Pvt. Ltd., Vs. The Deputy Commissioner of Bangalore – 560 045. Income Tax, PAN : AABCN 9200H Circle 12(2),…

Deputy Commissioner of Income Tax, Circle-5(1)(2), Bangalore vs. M/S Nxp Semiconductors I P Ltd, Bangalore

In the result, Revenue’s appeal for Assessment Year 2009-10 is partly allowed for statistical purposes only

Bench: Shri George George K & Shri Jason P. Boazi.T. (T.P.) A. No.1662/Bang/2014 (Assessment Year : 2009-10) The Dy. Commissioner Of Income Tax, Vs. M/S. Nxp Semi Conductors India Circle 12(2), Bangalore. Pvt. Ltd., I.T. Park, Nagawara Vill., Kasaba Hobli, Bangalore-560 045 Pan Aadcp 9454H Appellant Respondent.

…case of Amba Research India Pvt. Ltd. in IT(TP)A No.1376/Bang/2014 dt.17.4.2015 which has followed the decisions of earlier co-ordinate benchof thisTribunal in the case of Triology E-Business Software India Pvt. Ltd. (supra) and Sap Labs India (P) Ltd. (2011) 44 SOT 156 (Bang). 5 IT(T.P)A No.1662/Bang/2014 4.3 We have heard the rival contentions and perused and carefully considered the material on record; including the judicial decisions cited and placed reliance upon. We observe that it has not been disputed that the foreign exchange gain/loss has arisen as a consequence of the realization of the consideration…

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

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

…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…

Asst. Ci.T., Bangalore vs. M/S Denso Kirloskar Industries Pvt. Ltd., Bangalore

In the result, the appeal of the revenue is dismissed

Bench: Shri N.V. Vasudevan & Shri Jason P. Boaz

…e of computing operating margin of the assessee and the comparable IT(TP)A No.81/Bang/2015 Page 3 of 4 companies. The CIT(Appeals), on the other hand, following the decision of the ITAT Bangalore Bench in the case of SAP Labs India Pvt. Ltd. v. ACIT (2011) 44 SOT 156, wherein it was held that foreign exchange fluctuation gain is nothing but integral part of the sale proceeds of the assessee carrying on export business and that the same should be treated as operating income. The CIT(Appeals), following the aforesaid decision, directed the AO to compute margin of the assessee and comparable companies treating t…

M/S Sanyo Bpl Pvt. Ltd., Bangalore vs. DCIT, Bangalore

In the result the appeal of the revenue is dismissed

Bench: Shri. Inturi Rama Rao & Shri. Lalit Kumar, Judicial1-3. I.T(Tp).A Nos.1578 To 1580/Bang/2014 (Assessment Years : 2007-08, 2008-09 & 2009-10) M/S. Sanyo Bpl P. Ltd, Jubilee Building, Ii Floor, No.45, Museum Road, Bengaluru 560 025 .. Appellant Pan : Aajcs0332B V. Deputy Commissioner Of Income-Tax, Circle -12(3), Bengaluru .. Respondent 4-6. I.T(Tp).A Nos.1625 To 1627/Bang/2014 (Assessment Years : 2007-08, 2008-09 & 2009-10) (By The Revenue) Assessee By : None Revenue By : Shri. G. R. Reddy, Cit-Dr-I Heard On : 02.05.2017 Pronounced On : 09.06.2017 O R D E R Per Bench:

…12. The issue whether the foreign exchange gain is a part of the operating revenue and foreign exchange loss is a part of the operating expenses is no more res integra. The Bangalore bench of the Tribunal in the matter of SAP LABS India P. Ltd v. ACIT [(2011) 44 SOT 156], has held that the foreign exchange fluctuations incurred cannot be excluded from the computation of operating margin of the assessee company. In view of the above, the issues are squarely covered against the Revenue and IT(TP)A.1578 to 1580 & 1625 to 1627/Bang/2014 Page - 9 in view thereof, the objections raised by the Revenue are rejected. Fur…