IBM UNITED KINGDOM LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX , INTERNATIONAL TAXATION-CIRCLE-1(2), BANGALORE

In the result, all the appeals of the assessees are allowed

Bench: Shri Chandra Poojari & Smt. Beena Pillai

section 197, in respect to deductibility of tax on similar receipts - The CIT(A) highlighted that section 195(2) and section 197 of the Act are in the nature of safeguard sections to make sure that taxes are rightfully deducted on payments. - The CIT(A) has thereafter contended that the Assessee has not availed any of the safeguards and basis

IBM CORPORATION,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX, INTERNATIONAL TAXATION-CIRCLE-1(2) , BANGALORE

In the result, all the appeals of the assessees are allowed

Bench: Shri Chandra Poojari & Smt. Beena Pillai

section 197, in respect to deductibility of tax on similar receipts - The CIT(A) highlighted that section 195(2) and section 197 of the Act are in the nature of safeguard sections to make sure that taxes are rightfully deducted on payments. - The CIT(A) has thereafter contended that the Assessee has not availed any of the safeguards and basis

IBM ISRAEL LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX , INTERNATIONAL TAXATION-CIRCLE-1(2) , BANGALORE

In the result, all the appeals of the assessees are allowed

Bench: Shri Chandra Poojari & Smt. Beena Pillai

section 197, in respect to deductibility of tax on similar receipts - The CIT(A) highlighted that section 195(2) and section 197 of the Act are in the nature of safeguard sections to make sure that taxes are rightfully deducted on payments. - The CIT(A) has thereafter contended that the Assessee has not availed any of the safeguards and basis

IBM CORPORATION,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, INTERNATIONAL TAXATION, CIRCLE-1(2)(1) , BANGALORE

In the result, all the appeals of the assessees are allowed

Bench: Shri Chandra Poojari & Smt. Beena Pillai

section 197, in respect to deductibility of tax on similar receipts - The CIT(A) highlighted that section 195(2) and section 197 of the Act are in the nature of safeguard sections to make sure that taxes are rightfully deducted on payments. - The CIT(A) has thereafter contended that the Assessee has not availed any of the safeguards and basis

IBM CANADA LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX, INTERNATIONAL TAXATION-CIRCLE-1(2), BANGALORE

In the result, all the appeals of the assessees are allowed

section 195(2)/ 197 of the\nAct are not mandatory and therefore the\nAO cannot be expected to seek recourse\nto the same.\nPage 47 of 56\nIT(IT)A Nos.487 to 504/Bang/2024 &\nIT(IT)A Nos.541 to 546/Bang/2024\nIBM Canada Limited & Others\nObservation of the CIT(A)\nThe CIT(A) also highlighted that in\nAbbey's case, the Assessee

IBM CANADA LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX, INTERNATIONAL TAXATION, CIRCLE-1(2), BANGALORE

In the result, all the appeals of the assessees are allowed

reassessment\nproceedings.\nThe CIT(A) has distinguished the facts\nof the case from Karnataka HC's\nruling in Manjunatha Cotton &\nGinning Factory [2013] 35\nTaxmann.com 250 (Karnataka HC)\nThe CIT(A) has concluded that the\nprovisions of 270A(8) need not be\ninvoked and that the case of the\nAssessee is covered under section\n270A(2)(a) / 270A

COMPAGNIE IBM FRANCE,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX, INTERNATIONAL TAXATION-CIRCLE-1(2), BANGALORE

In the result, all the appeals of the assessees are allowed

reassessment\nproceedings.\nThe CIT(A) has distinguished the facts\nof the case from Karnataka HC's\nruling in Manjunatha Cotton &\nGinning Factory [2013] 35\nTaxmann.com 250 (Karnataka HC)\nThe CIT(A) has concluded that the\nprovisions of 270A(8) need not be\ninvoked and that the case of the\nAssessee is covered under section\n270A(2)(a) / 270A

IBM DEUTSCHLAND GMBH,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, INTERNATIONAL TAXATION, CIRCLE-1(2)(1), BANGALORE

In the result, all the appeals of the assessees are allowed

reassessment\nproceedings.\nThe CIT(A) has distinguished the facts\nof the case from Karnataka HC's\nruling in Manjunatha Cotton &\nGinning Factory [2013] 35\nTaxmann.com 250 (Karnataka HC)\nThe CIT(A) has concluded that the\nprovisions of 270A(8) need not be\ninvoked and that the case of the\nAssessee is covered under section\n270A(2)(a) / 270A

EDGEVERVE SYSTEMS LIMITED ,BANGALORE vs. ACIT, CIRCLE-2(2)(1), BANGALORE

In the result, both the appeals of the assessee are partly allowed for statistical purposes

Bench: Shri Waseem Ahmed & Shri Soundararajan K

reassessment proceedings were initiated. Thus, the Revenue has accepted the allowability of depreciation on identical assets created based on identical business transfer agreement in earlier years. In the absence of any change in facts or law, the Revenue cannot take a contradictory stand in the year under consideration. The settled principle that the Revenue cannot blow hot and cold

EDGEVERVE SYSTEMS LIMITED ,BANGALORE vs. ACIT, CIRCLE-2(2)(1), BANGALORE

In the result, both the appeals of the assessee are partly allowed for statistical purposes

Bench: Shri Waseem Ahmed & Shri Soundararajan K

reassessment proceedings were initiated. Thus, the Revenue has accepted the allowability of depreciation on identical assets created based on identical business transfer agreement in earlier years. In the absence of any change in facts or law, the Revenue cannot take a contradictory stand in the year under consideration. The settled principle that the Revenue cannot blow hot and cold

EDGEVERVE SYSTEMS LIMITED ,BANGALORE vs. ACIT, CIRCLE-2(2)(1), BANGALORE

In the result, both the appeals of the assessee are partly allowed for statistical purposes

Bench: Shri Waseem Ahmed & Shri Soundararajan K

reassessment proceedings were initiated. Thus, the Revenue has accepted the allowability of depreciation on identical assets created based on identical business transfer agreement in earlier years. In the absence of any change in facts or law, the Revenue cannot take a contradictory stand in the year under consideration. The settled principle that the Revenue cannot blow hot and cold

IBM CHINA HONG KONG LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, INTERNATIONAL TAXATION, CIRCLE-1(2)(1), BANGALORE

In the result, all the appeals of the assessees are allowed

section\n195(2) and section 197 of the Act are\nin the nature of safeguard sections to\nmake sure that taxes are rightfully\ndeducted on payments.\nRebuttal to the CIT(A)'s observations\nProvisions of section 195(2)/ 197 of the\nAct are not mandatory and therefore the\nAO cannot be expected to seek recourse\nto the same.\nTherefore

IBM JAPAN LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX, INTERNATIONAL TAXATION, CIRCLE-1(2) , BANGALORE

In the result, all the appeals of the assessees are allowed

section 195(2)/ 197 of the\nAct are not mandatory and therefore the\nAO cannot be expected to seek recourse\nto the same.\n\nPage 47 of 56\nIT(IT)A Nos.487 to 504/Bang/2024 &\nIT(IT)A Nos.541 to 546/Bang/2024\nIBM Canada Limited & Others\nObservation of the CIT(A)\n- The CIT(A) also highlighted that in\nAbbey's case

IBM UNITED KINGDOM LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX, INTERNATIONAL TAXATION-CIRCLE-1(2), BANGALORE

In the result, all the appeals of the assessees are allowed

reassessment\nproceedings.\n\n- The CIT(A) has distinguished the facts\nof the case from Karnataka HC's\nruling in Manjunatha Cotton &\nGinning Factory [2013] 35\nTaxmann.com 250 (Karnataka HC)\n\n- The CIT(A) has concluded that the\nprovisions of 270A(8) need not be\ninvoked and that the case of the\nAssessee is covered under section\n270A

IBM JAPAN LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX , INTERNATIONAL TAXATION-CIRCLE-1(2), BANGALORE

In the result, all the appeals of the assessees are allowed

reassessment\nproceedings.\nThe CIT(A) has distinguished the facts\nof the case from Karnataka HC's\nruling in Manjunatha Cotton &\nGinning Factory [2013] 35\nTaxmann.com 250 (Karnataka HC)\nThe CIT(A) has concluded that the\nprovisions of 270A(8) need not be\ninvoked and that the case of the\nAssessee is covered under section\n270A

IBM UNITED KINGDOM LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX , INTERNATIONAL TAXATION-CIRCLE-1(2), BANGALORE

In the result, all the appeals of the assessees are allowed

section 195(2)/ 197 of the\nAct are not mandatory and therefore the\nAO cannot be expected to seek recourse\nto the same.\n==End of OCR for page 46== IT(IT)A Nos.487 to 504/Bang/2024 &\nIT(IT)A Nos.541 to 546/Bang/2024\nIBM Canada Limited & Others\nPage 47 of 56\nObservation of the CIT(A)\n- The CIT(A) also

COMPAGNIE IBM FRANCE,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX, INTERNATIONAL TAXATION-CIRCLE-1(2), BANGALORE

In the result, all the appeals of the assessees are allowed

section\n195 while IBM has not exercised this\noption.\n(Page 21-22 of the CIT(A) order)\nThe CIT(A) has contended that the\nexplanations offered by the Assessee are\nnot bonafide since no application under\nsection 197 was presented by the\nAssessee. The CIT(A) observed that:\nThe option to present an application\nunder section

IBM AUSTRALIA LIMITED ,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX, INTERNATIONAL TAXATION-CIRCLE-1(2) , BANGALORE

In the result, all the appeals of the assessees are allowed

reassessment\nproceedings.\nThe CIT(A) has distinguished the facts\nof the case from Karnataka HC's\nruling in Manjunatha Cotton &\nGinning Factory [2013] 35\nTaxmann.com 250 (Karnataka HC)\nThe CIT(A) has concluded that the\nprovisions of 270A(8) need not be\ninvoked and that the case of the\nAssessee is covered under section\n270A(2)(a) / 270A

IBM CANADA LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX, INTERNATIONAL TAXATION, CIRCLE-1(2) , BANGALORE

The appeals of the assessees are allowed

reassessment\nproceedings.\nThe CIT(A) has distinguished the facts\nof the case from Karnataka HC's\nruling in Manjunatha Cotton &\nGinning Factory [2013] 35\nTaxmann.com 250 (Karnataka HC)\nThe CIT(A) has concluded that the\nprovisions of 270A(8) need not be\ninvoked and that the case of the\nAssessee is covered under section\n270A(2)(a) / 270A