M/S UB SPORTS MANAGEMENT OVERSEAS LIMITED ,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX(INTERNATIONAL TAXATION) CIRCLE-1(2), BANGALORE

In the result, the appeals filed by the assessees are partly allowed

Bench: Shri George George K. & Ms. Padmavathy S.

gains (based on the assessed income) of Rs. 96,52,74,468/-. We shall adjudicate the above two issues as under: - Re-computation of arm's length price of shares sold by the assessee amounting to Rs. 262,27,80,021/- (Ground Nos. 1 to 14): 6. The brief facts in relation to the above issue are that the assessee

M/S PALMER INVESTMENT GROUP LIMITED ,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION) CIRCLE-2(1), BANGALORE

In the result, the appeals filed by the assessees are partly allowed

Bench: Shri George George K. & Ms. Padmavathy S.

gains (based on the assessed income) of Rs. 96,52,74,468/-. We shall adjudicate the above two issues as under: - Re-computation of arm's length price of shares sold by the assessee amounting to Rs. 262,27,80,021/- (Ground Nos. 1 to 14): 6. The brief facts in relation to the above issue are that the assessee

WIPRO LIMITED,BANGALORE vs. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-7(1)(1), BANGALORE

In the result, the appeal filed by the assessee is partly allowed for statistical purposes

Bench: Smt. Beena Pillai & Shri Laxmi Prasad Sahu

Gain". The assessee did not receive the sum in question for giving up any source of income as the assessee was free to exploit independently owned IPR as well as Foreground information and therefore the argument that the sum received is capital receipt for losing a source of income and therefore not chargeable to tax, is devoid of any merits

DCIT, BANGALORE vs. M/S CORE OBJECTS INDIA PVT. LTD.,, BANGALORE

In the result appeal filed by assessee stands allowed as indicated hereinabove and appeal filed by revenue stands allowed partly

Bench: Shri. Chandra Poojari & Smt. Beena Pillaiit(Tp)A No.517/Bang/2015 Assessment Year : 2010-11

Gains from Business' after claim of deduction under section 1 OA for the Bangalore and Pune units., the learned AO be directed to allow carry forward of the loss under the head 'Income from other Sources' amounting to Rs. 2, 16,017 for set off against income in subsequent years. 3. Interest under section 234B The learned AO has erred

DCIT, BANGALORE vs. M/S NETSCOUT SYSTEMS SOFTWARE INDIA PVT. LTD.,, BANGALORE

In the result, the appeal filed by the revenue is partly allowed

Bench: Shri Sunil Kumar Yadav & Shri Inturi Rama Raoit(Tp)A No.1212/Bang/2011 (Assessment Year: 2005-06) Deputy Commissioner Of Income-Tax, Circle 12(2), Bengaluru. … Appellant Vs. M/S.Netscout Systems Software India Pvt. Ltd. (Earlier Known As ‘Network General Software India Pvt. Ltd.) ‘Embassy Icon’, Ground Floor, No.3, Infantry Road, Bengaluru-1. … Respondent Pan:Aaics 0944 E & Cross Objn.No.30/Bang/2012 (In It(Tp)A No.1212/Bang/2011) (Assessment Year: 2005-06) (By The Assessee) Revenue By : Smt. Padma Meenakshi, Jcit(Dr) Assessee By : Shri Chavali Narayan, Ca

capital adjustment of 2.29% adjusted asymmetrical mean of PL I was determined at 24.3%. On the above basis, the TPO computed TP adjustment as follows: 4. The Assessing Officer passed assessment order under section 143(3) dated 17/04/2008 incorporating the above TP adjustments. 5. Being aggrieved by the above assessment order, an appeal was preferred before the learned

M/S. WIPRO LIMITED ,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-7(1)(2), BANGALORE

In the result, the appeal filed by the assessee is treated as partly allowed for statistical purposes

Bench: Shri N.V. Vasudevan & Shri B.R. Baskaranit(Tp)A No.2556/Bang/2019 Assessment Year : 2015-16

capital expenditure and it is only a revenue expenditure. Further, in the following decision it was held that study undertaken in relation to an existing business is revenue in nature. [CIT v. Manganese Ore India Ltd [2016] 67 Taxmann.com 268 (Bombay), ITO v. Dodsal Mfg P Ltd [1984] 19 Taxman 27 (Ahmedabad), CIT v. Priya Village Roadshows

M/S DELL INTERNATIONAL SERVICES INDIA PRIVATE LIMITED ,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX LTU , BANGALORE

In the result, the appeal is allowed

Bench: Shri N.V. Vasudevan & Shri B R Baskaran

Capital I-Q Information Systems (India) (P) Ltd. Supra) that KPO services are not IT(TP)A No.879/Bang/2018 Page 25 of 48 comparable to software development services and are therefore not comparable. Following the aforesaid decision of the co-ordinate bench of the Hyderabad Tribunal in the aforesaid case, we hold that this company, i.e. e-Zest Solutions

DCIT, BANGALORE vs. M/S MISYS SOFTWARE (I) PVT. LTD.,, BANGALORE

In the result, both the appeal of Revenue for Assessment Year 2005-06 and the C

Bench: Smt. P. Madhavi Devi & Shri Jason P. Boazi.T(T.P.) A. No.1110/Bang/2011 (Assessment Year : 2005-06) Dy. Commissioner Of Income Tax, Circle 12(1), Bangalore-560 001 …. Appellant. Vs. M/S. Misys Software (I) Pvt. Ltd., Eagle Ridge, Embassy Golf Links Business Park, Off Intermediate Ring Road, Bangalore-560 071. ….. Respondent. Pan Aaack 9067G C.O. No.20/Bang/2012 (In I.T(T.P.) A. No.1110/Bang/2011) (By Assessee)

capital employed and risks undertaken but the higher or lower profit rate is not and can never be a relevant criteria to judge the comparability. 98. As noted by the Division Benches of the Tribunal in the cases discussed above, the OECD guidelines suggest quartile method which excludes the companies that fall in the extreme quartiles for comparability and there

DCIT, BANGALORE vs. M/S CISCO SYSTEMS INDIA PVT. LTD.,, BANGALORE

In the result, the Revenue’s appeal as well as Assessee’s appeal are partly allowed for statistical purposes

92C of the Act; 15.The learned TPO / learned AO have erred, in law and in facts, by not making suitable adjustments to account for differences in the risk profile of the Appellant vis-a-vis the com parables. Additional Grounds filed vide letter dated 7 January 2016: 15A. The learned Assessing Officer has erred in making a reference

CISCO SYSTEMS (INDIA) PRIVATE LIMITED,BANGALORE vs. ASST.C.I.T., BANGALORE

In the result, the Revenue’s appeal as well as Assessee’s appeal are partly allowed for statistical purposes

92C of the Act; 15.The learned TPO / learned AO have erred, in law and in facts, by not making suitable adjustments to account for differences in the risk profile of the Appellant vis-a-vis the com parables. Additional Grounds filed vide letter dated 7 January 2016: 15A. The learned Assessing Officer has erred in making a reference

MFX INFOTECH PRIVATE LIMITED,BENGALURU vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE- 4(1)(2), BANGALORE

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

Bench: Shri N.V. Vasudevan & Ms. Padmavathy S.It(Tp)A No. 251/Bang/2021 (Assessment Year: 2016-17)

Gains of Business or Profession" do not refer to or include the amounts computed under Chapter X and therefore addition made under Chapter X is bad in law; and (c) passing the orders without considering all the submissions and/or without appreciating properly the facts and circumstances of the case and the law applicable. (d) in not restricting the TP adjustment

M/S. BORQS SOFTWARE SOLUTIONS PRIVATE LIMITED,BANGALORE vs. THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-1(1)(2), BANGALORE

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

Bench: Shri N.V. Vasudevan & Shri Chandra Poojari

gain on foeign exchange fluctuation) and the Operating Cost was Rs.21,44,99,173/-. The Operating profit (Operating income – Operating cost was Rs.3,72,15,373/-. Thus the OP/TC was arrived at 17.35%. The Assessee chose companies who are engaged in providing similar services such as the Assessee. The Assessee identified companies whose average arithmetic mean of profit margin

AMD INDIA PVT. LTD.,,BANGALORE vs. ITO,

In the result, the appeal by the Revenue is dismissed, while the appeal by the assessee is partly allowed

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

section 92C, the arm’s length price in relation to an international transaction shall be determined by any of the following methods, being the most appropriate method, in the following manner, namely :— (a)……. to (d)…….. (e) transactional net margin method, by which,— (i) the net profit margin realised by the enterprise from an international transaction entered into with an associated

ITO vs. M/S AAMD INDIA PVT. LTD.,,

In the result, the appeal by the Revenue is dismissed, while the appeal by the assessee is partly allowed

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

section 92C, the arm’s length price in relation to an international transaction shall be determined by any of the following methods, being the most appropriate method, in the following manner, namely :— (a)……. to (d)…….. (e) transactional net margin method, by which,— (i) the net profit margin realised by the enterprise from an international transaction entered into with an associated

M/S. NTT DATA GLOBAL SERVICES PRIVATE LIMITED,BANGALORE vs. THE JOINT COMMISSIONER OF INCOME TAX, SPECIAL RANGE- 5, BANGALORE

section 92C, the\narm's length price in relation to an international transaction 22[or a\nspecified domestic transaction] shall be determined by any of the\nfollowing methods, being the most appropriate method, in the\nfollowing manner, namely:\n(a) - (d) xx\nXX\n(e) Transactional Net Margin Method, by which,-\n(i) the net profit margin realised

THE HIMALAYA DRUG COMPANY,BENGALURU vs. JOINT COMMISSIONER OF INCOME TAX(OSD), CIRCLE-6(1)(1), BENGALURU

In the result, the appeal filed by the assessee is treated as allowed

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

capital in the markets, overall economic development and level of competition and whether the markets are wholesale or retail." As per Rule 10B(3), an uncontrolled transaction shall be comparable to an international transaction if :— "E (3) An uncontrolled transaction shall be comparable to an international transaction if— (i) none of the differences, if any, between the transactions being compared

M/S. COURSE5 INTELLIGENCE PRIVATE LIMITED (FORMERLY CROSS TAB MARKETING SERVICES PRIVATE LIMITED),BANGALORE vs. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE- 2(1)(1), BANGALORE

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

Bench: Shri Chandra Poojari & Smt. Beena Pillaiassessment Year : 2013-14 M/S. Course5 Intelligence Pvt. Ltd., (Formerly Cross Tab Marketing Services The Deputy Pvt. Ltd.) Commissioner Of No. 422, 80 Feet Income Tax, Road, Circle – 2(1)(1), 6Th Block, Vs. Bangalore. Koramangala, Bangalore – 560 095. Pan: Aabcc6525A Appellant Respondent : Shri Padam Chand Khincha, Assessee By Ca : Shri Srinivas Rao Bandaru, Revenue By Jcit Dr Date Of Hearing : 14-07-2022 Date Of Pronouncement : 18-08-2022 Order Per Beena Pillaipresent Appeal Is Filed By Assessee Against Order Dated 14/10/2019 Passed By Ld.Cit(A)-2, Bangalore For A.Y. 2013-14 On Following Grounds Of Appeal: “1. The Learned Assessing Officer Had Erred In Passing The Order In The Manner Passed By Him & The Learned Cit (A) Has Erred In Partially Confirming The Same. The Orders Passed Being Bad In Law & Liable To Be Quashed.

92C(4) states that no deduction under section 10A or section 10AA or section 10B or under Chapter VIA shall be allowed in respect of the amount of income by which the total income has been enhanced in line with determination of the Arm's Length Price ('ALP') by the assessing officer/TPO. 2.7 The reallocation of revenue of the branch

ACUSIS SOFTWARE INDIA PRIVATE LIMITED,BANGALORE vs. ITO, BANGALORE

In the result, the appeal filed by the assessee in IT(TP)A No

Bench: Shri Sunil Kumar Yadav & Shri Inturi Rama Rao

capital. The assessee company also contended that the criteria adopted by the assessee company for choosing the comparables should not have been rejected by the TPO. The assessee company also contended that the TPO should not have rejected persistent loss making companies as comparables. Finally it was contended that the benefit of proviso to sub section (2) to 92C

M/S. THE HIMALAYA DRUG COMPANY,BANGALORE vs. ASST. COMMISSIONER OF INCOME TAX, BANGALORE

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

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

capital in the markets, overall economic development and level of competition and whether the markets are wholesale or retail." As per Rule 10B(3), an uncontrolled transaction shall be comparable to an international transaction if :— "E (3) An uncontrolled transaction shall be comparable to an international transaction if— (i) none of the differences, if any, between the transactions being compared