Trilogy E-Business Software India (P.) Ltd. v. Dy. CIT

29 Taxmann.com 310Income Tax Appellate Tribunal2013#2422 most cited

What is Trilogy E-Business Software India (P.) Ltd. v. Dy. CIT authority for?

For Transfer Pricing, this case clarifies that foreign exchange gains can be considered operating revenue for ITES providers, acknowledges the impact of offshore versus onsite development pricing on margins even when using TNMM, and affirms the use of a turnover filter for selecting comparable companies.

48

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2015 to 2026.

Also referred to as

Trilogy E-Business Software India v. Dy. CIT · Section 92CA · transfer pricing · arm's length price · comparable companies · turnover filter · transactional net margin method · TNMM · operating revenue · foreign exchange gains · captive service provider

Also reported as

140 ITD 540

Sections most often in play

Section 133(6)Section 143(3)Section 144C(13)Section 271(1)(c)Section 92CA

Issues it is cited on

captive service providersection 92c(2)working capital adjustmentrelated party transactionfar analysistransactional net margin methodtested partycomparable companiesarms length pricemost appropriate methodintangible assetsarm's length price

Judgments citing Trilogy E-Business Software India (P.) Ltd. v. Dy. CIT

DCIT vs. M/S Aci Worldwide Solutions Pvt. Ltd

In the result, the Revenue’s appeal and the cross objection

ITA 477/BANG/2013[2005-06]Status: DisposedITAT Bangalore31 Oct 2016AY 2005-06

Bench: Smt. Asha Vijayaraghavan & Shri. S. Jayaraman

For Appellant: Shri. Padam Chand Khincha, CAFor Respondent: Shri. H. Ananda, JCIT
Section 92C

…IT(TP)A.477/Bang/2013 & CO.153/Bang/2015 Page - 1 IN THE INCOME TAX APPELLATE TRIBUNAL BENGALURU BENCH 'A', BENGALURU BEFORE SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER AND SHRI. S. JAYARAMAN, ACCOUNTANT MEMBER I.T(TP).A No.477/Bang/2013 (Assessment Years : 2005-06) Deputy Commissioner of Income Tax, Circle -11(1), Bengaluru ..Assessee v. M/s. ACI Worldwide Solutions P. Ltd, Salarpuria Cambridge Mall, No.9, Ulsoor, Bengaluru 560 008 ..Respondent PAN : AAACV7566R Cross objection No.153/Bang/2015 (In I.T(TP).A No.477/Bang/2013) (Assessment Years : 2005-06) (By the Assessee) Assessee by : Shri. Padam Chand Kh…

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

…IN THE INCOME TAX APPELLATE TRIBUNAL “K” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, JUDICIAL MEMBER AND SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER ITA no.4508/Mum./2011 (Assessment Year : 2005–06) Income Tax Officer Ward–10(3)(4) Aayakar Bhawan ……………. Appellant 101, M.K. Road, Mumbai v/s M/s. Keystone Solution P. Ltd. Block no.48, DEF Godrej Industries Complex Pirojshshnagar Gate no.4 ……………. Respondent Eastern Express Highway Vikhroli (E), Mumbai 400 079 PAN – AACCS7667Q Revenue by : Shri N.K. Chand Assessee by : Shri M. Muzali Date of Hearing – 21.07.2016 Date of Order – 19.10.2016 O R D E R PER SAKTIJIT DEY, J.M.…

Softbrands India Pvt. Ltd vs. A.C.I.T

In the result, grounds 10 to 18 of the assessee are treated as partly allowed

ITA 1550/BANG/2012[2008-09]Status: DisposedITAT Bangalore29 Apr 2016AY 2008-09

Bench: Shri. Abraham P. George & Shri. Vijay Pal Raoi.T(Tp).A No.1550/Bang/2012 (Assessment Year : 2008-09) Infor (Bangalore) P. Ltd, (Earlier : Softbrands India P. Ltd) Prestige Obelisk, Level 9, Kasturba Road, Bangalore 560 001 .. Appellant Pan : Aafc9041K V. Asst. Commissioner Of Income-Tax, Circle -12(3), Bengaluru .. Respondent Assessee By : Shri. Cherian K. Baby, Ca Revenue By : Shri. G. R. Reddy, Cit-Dr-I Heard On : 29.03.2015 Pronounced On : 29.04.2015 O R D E R Per Abraham P. George:

For Appellant: Shri. Cherian K. Baby, CAFor Respondent: Shri. G. R. Reddy, CIT-DR-I
Section 10ASection 70Section 92C

…mation obtained u/s.133(6) of the Act. However, it is also clearly mentioned at 7.6.2 that the said company was functionally dissimilar. Same view was also taken by the coordinate bench in the case of Triology E- Business Software India P. Ltd v. DCIT [(2013) 140 ITD 540]. 24. Observation of this Tribunal with regard to Celestial Biolabs Ltd, as it appears in the case of 3DPLM Software Solutions Ltd (supra) is reproduced hereunder : 9.1 This comparable was selected by the TPO for inclusion in the final list of comparables. Before the TPO, the assessee had objected to the inclusion of this company in the list of…

DCIT, Bangalore vs. M/S Keane International (India) Pvt. Ltd., Bangalore

In the result, the appeal of the revenue is partly allowed

ITA 1496/BANG/2013[2005-06]Status: DisposedITAT Bangalore06 Apr 2016AY 2005-06

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Rao

For Appellant: Shri Chavali Narayan, CAFor Respondent: Shri G.R.Reddy, CIT(DR)
Section 92C

…IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, BANGALORE BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER and SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER IT(TP)A No.1487/Bang/2013 (Assessment year: 2005-06) M/s.NTT DATA Global Delivery Services Ltd. (formerly known as Keane International (India) Pvt. Ltd.) No.17, South End Road, Basavanagudi, Bangalore-560004. PAN:AAACI 4796 E … Appellant Vs. Asst. Commissioner of Income-tax, Circle 11(5), Bangalore. … Respondent AND IT(TP)A No.1496/Bang/2013 (Assessment year: 2005-06) Deputy Commissioner of Income-tax, Circle 11(5), Bangalore. … Appellant Vs. M/s.Keane Internatio…

Novell Software Development (India) Private Limited, Bangalore vs. DCIT, Bangalore

In the result grounds 4.a, 4

ITA 1287/BANG/2011[2007-08]Status: DisposedITAT Bangalore31 Mar 2016AY 2007-08

Bench: Shri. Abraham P. George & Shri. Vijay Pal Raoi.T(Tp).A No.1287/Bang/2011 (Assessment Year : 2007-08) Novell Software Development (India) P. Ltd, Bagmane Tech Park, ‘D’ Block, 65/2, C. V. Raman Nagar, Byrasandra Post, Bangalore 560 093 .. Appellant Pan : Aaacn6992K V. Deputy Commissioner Of Income-Tax, Circle -12(2), Bangalore .. Respondent Assessee By : Shri. T. Suryanarayana, Advocate Revenue By : Shri. G. R. Reddy, Cit –Dr-I Heard On : 21.03.2016 Pronounced On : 31.03.2016 O R D E R Per Abraham P. George:

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

…IT(TP)A.1287/Bang/2011 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.1287/Bang/2011 (Assessment Year : 2007-08) Novell Software Development (India) P. Ltd, Bagmane Tech Park, ‘D’ Block, 65/2, C. V. Raman Nagar, Byrasandra Post, Bangalore 560 093 .. Appellant PAN : AAACN6992K v. Deputy Commissioner of Income-tax, Circle -12(2), Bangalore .. Respondent Assessee by : Shri. T. Suryanarayana, Advocate Revenue by : Shri. G. R. Reddy, CIT –DR-I Heard on : 21.03.2016 Pronounced on : 31.…

DCIT vs. M/S Akamai Technologies India Pvt. Ltd., Bangalore

In the result, the appeal of the revenue is partly allowed

ITA 879/BANG/2013[2005-06]Status: DisposedITAT Bangalore16 Mar 2016AY 2005-06

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Rao

For Appellant: Shri P.K.Prasad, AdvocateFor Respondent: Dr.P.K.Srihari, Addl.CIT
Section 10ASection 10B

…ase of BA Continuum India Pvt. Ltd. (supra) is based on the decision of Sapient Corporation Pvt.Ltd. vs. DCIT (11 Taxman.com 69)(Del). Subsequently, the co-ordinate (Bangalore) bench of the Tribunal in the case of Trilogy E- Business Software India Pvt. Ltd. (140 ITD 540)(Bang.) held that there is no bar to considering companies having abnormal losses or profits as comparable as long as they are functionally comparable. The Tribunal however, held that if there are specific reasons for abnormal profits or losses or other general reasons as IT(TP)A No.879/B/13 & CO 174/B/15 Page 17 of 22 to why they should not be c…

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

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

ITA 309/BANG/2015[2010-11]Status: DisposedITAT Bangalore10 Nov 2015AY 2010-11

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).

For Appellant: Shri. C. J. Brito, CAFor Respondent: Shri. Sanjay Kumar, CIT-III
Section 144C

…uch a situation we cannot take a presumption that foreign exchange gain / loss were not having any nexus to the ITA.309/Bang/2015 Page - 6 operations of the assessee. Coordinate bench in the case of Triology E- Business Software India P. Ltd v. DCIT [[(2013) 140 ITD 540] had held as under at para 79 of its order (B) Treating foreign exchange gain or loss and provision for bad debts as non-operating in nature and fringe benefit tax as part of operating cost: As far as foreign exchange gain/loss being considered as not forming part of the operating cost, the reasoning of the revenue is that such loss or gain cann…

Serial Innovations India Private Limited, Bangalore vs. DCIT, Bangalore

In the result, grounds of appeal raised by the assessee against the transfer pricing adjustment are treated as partly allowed

ITA 1330/BANG/2011[2007-08]Status: DisposedITAT Bangalore30 Jun 2015AY 2007-08

Bench: Smt. P. Madhavi Devi & Shri Abraham P George

For Appellant: Shri Hardev Singh, CAFor Respondent: Shri Farhat Hussain Qureshi, CIT(DR)
Section 10ASection 143(3)Section 2(45)

…IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH : BANGALORE BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER and SHRI ABRAHAM P GEORGE, ACCOUNTANT MEMBER IT(TP)A No.1330/Bang/2011 (Assessment year: 2007-08) M/s.Serial Innovations India Pvt. Ltd. (formerly known as ‘Sarnoff Innovative Technologies Pvt.Ltd.’), No.104, I Floor, 17th C Main, 5th Cross, 5th Block, Koramangala, Bangalore-560095. … Appellant PAN: AAHCS8134P Vs. Deputy Commissioner of Income-tax, Circle 12(3), Bangalore. … Respondent Appellant by: Shri Hardev Singh, CA. Respondent by: Shri Farhat Hussain Qureshi, CIT(DR) Date of hearing : 08/06/2015 Da…