BROADCOM INDIA RESEARCH PRIVATE LIMITED,BANGALORE vs. DCIT, BANGALORE

In the result the appeal by the Assessee is partly allowed

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

92D, the Assessing Officer may proceed to determine the arm’s length price in relation to the said international transaction in accordance with sub-sections (1) and (2), on the basis of such material or information or document available with him:” IT(TP)A No. 1180/Bang/2011 Page 45 of 65 18. Rule 10B of the IT Rules, 1962 prescribes

NEOGENETICS FOODS PRIVATE LIMITED,BANGALORE vs. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-3(1)(1), BANGALORE

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

Bench: Shri N. V. Vasudevan & Shri B. R. Baskaranit(Tp)A No.361/Bang/2021 Assessment Year : 2016-17 M/S. Neogenetics Foods Private Limited, Vs. Dcit, Level 14 & 15, Concorde Towers, Ub City, 1 Circle - 3(1)(1), Vittal Malya Road, Ub City, Bengaluru. Bengaluru – 560 001. Pan : Aadcn 7689 L Assessee Respondent Assessee By : Shri. Narendra Kumar Jain, Advocate Revenue By : Dr. Manjunath Karkihalli, Cit(Dr)(Itat), Bengaluru Date Of Hearing : 03.02.2022 Date Of Pronouncement : 07.02.2022 O R D E R Per N V Vasudevan

92D and 92E, “specified domestic transaction” in case of an assessee means any of the following transactions, not being an international transaction, namely:— (i) any expenditure in respect of which payment has been made or is to be made to a person referred to in clause (b) of sub-section (2) of section 40A. (ii) any transaction referred

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

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

92D, the Assessing Officer may proceed to determine the arm’s length price in relation to the said international transaction in accordance with sub-sections (1) and (2), on the basis of such material or information or document available with him:” 18. Rule 10B of the IT Rules, 1962 prescribes rules for Determination of arm’s length price under

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

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

92D, the Assessing Officer may proceed to determine the arm’s length price in relation to the said international transaction in accordance with sub-sections (1) and (2), on the basis of such material or information or document available with him:” 18. Rule 10B of the IT Rules, 1962 prescribes rules for Determination of arm’s length price under

M/S. ARM EMBEDDED TECHNOLOGIES PVT. LTD,BANGALORE vs. DCIT,, BANGALORE

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

Bench: Smt. Asha Vijayaraghavan & Shri Abraham P. George

92D, the Assessing Officer may proceed to determine the arm’s length price in relation to the said international transaction in accordance with sub-sections (1) and (2), on the basis of such material or information or document available with him:” 18. Rule 10B of the IT Rules, 1962 prescribes rules for Determination of arm’s length price under

M/S ARM EMBEDDED TECHNOLOGIES PVT. LTD.,,BANGALORE vs. DCIT, BANGALORE

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

Bench: Smt. Asha Vijayaraghavan & Shri Abraham P. George

92D, the Assessing Officer may proceed to determine the arm’s length price in relation to the said international transaction in accordance with sub-sections (1) and (2), on the basis of such material or information or document available with him:” 18. Rule 10B of the IT Rules, 1962 prescribes rules for Determination of arm’s length price under

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

68 of PB-II), which was also adopted by the TPO in his show cause notice (Page 84 of PB-I). The segmental results i.e., results pertaining to software services segment of this company was: Segmental Operating Revenues Rs.63,71,32,544 Segmental Operating Expenses Rs.51,75,13,211 Operating Profit Rs.11,96,19,333 OP/TC

BROADCOM COMMUNICATIONS TECHNOLOGIES PRIVATE LIMITED,BANGALORE vs. DCIT, BANGALORE

In the result the appeal by the Assessee is partly allowed

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

68 of PB-II), which was also adopted by the TPO in his show cause notice (Page 84 of PB-I). The segmental results i.e., results pertaining to software services segment of this company was: Segmental Operating Revenues Rs.63,71,32,544 Segmental Operating Expenses Rs.51,75,13,211 Operating Profit Rs.11,96,19,333 OP/TC

BROADCOM INDIA PRIVATE LIMITED,BANGALORE vs. DCIT, BANGALORE

In the result the appeal by the Assessee is partly allowed

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

68 of PB-II), which was also adopted by the TPO in his show cause notice (Page 84 of PB-I). The segmental results i.e., results pertaining to software services segment of this company was: Segmental Operating Revenues Rs.63,71,32,544 Segmental Operating Expenses Rs.51,75,13,211 Operating Profit Rs.11,96,19,333 OP/TC

M/S. TESCO HINDUSTAN SERVICE CENTRE PVT. LTD.,,BANGALORE vs. DCIT, BANGALORE

In the result the appeal by the Assessee is partly allowed

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

68,69,78,783/- Lease Rent - Rs 1,73,40,000/- Reimbursement of expenses-Payable - Rs 2,53,967/- Reimbursement of expenses-Receivable - Rs. 2,32,47,077/- Rent Deposit received - Rs. 2,00,00,000/- IT(TP)A No.1317/Bang/2010 Page 4 of 41 TP ADJUSTMENT RELATING TO IT SERVICES (Software Development Services 4. Comparable companies ultimately selected

MINDTECK (INDIA) LIMITED,BANGALORE vs. ITO, BANGALORE

In the result, appeal by the Assessee is partly allowed

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

68,70,698 Arms Length Margin 25.14% of the operating cost Arms Length Price (ALP) Rs.22,13,35,991 At 125.14% of operating cost Price received Rs.18,58,84,791 Short fall being adjustment u/s.92CA Rs.3,54,51,200 12.7 Price received vis-à-vis the Arms Length Price: The price charged by the tax payer to its Associated Enterprises

MINDTECK (INDIA) LIMITED,BANGALORE vs. ITO, BANGALORE

In the result, appeal by the Assessee is partly allowed

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

92D, the Assessing Officer may proceed to determine the arm’s length price in relation to the said international transaction in accordance with sub-sections (1) and (2), on the basis of such material or information or document available with him:” 18. Rule 10B of the IT Rules, 1962 prescribes rules for Determination of arm’s length price under

SAMI-SABINSA GROUP LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-6(1)(1), BANGALORE

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

Bench: Smt. Beena Pillai & Shri Laxmi Prasad Sahu

92D alongwith financial details and copies of agreements. The same were furnished vide letter dated 04.12.2019. The TP documents contained 16 comparables in respect of manufacturing of Herbal and chemical products, which were selected by the taxpayer by applying certain filters and TNMM was applied as most appropriate method. On 15.12.2020 , the taxpayer was IT(TP)A No.184/Bang/2022 Page

IIFL SAMASTA FINANCE LIMITED ,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-6(1)(1), BANGALORE

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

92D, declared the international transaction under Chapter X, and,\ndisclosed all the material facts relating to the transaction; and\n(e)the amount of undisclosed income referred to in section 271AAB.\n(7)The penalty referred to in sub-section (1) shall be a sum equal to fifty per cent\nof the amount of tax payable on under

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

68 taxmann.com 311 (Bang. - Trib.); Dy. CIT v. Nike India (P.) Ltd. in IT (TP) Appeal No.232/Bang/2014 and other judicial pronouncements to contend that in the absence of any agreement OR arrangement with M/s. Himalaya Global Holdings Ltd., Cayman Islands to incur AMP expenses on its behalf to promote the brand value of the products, the AMP expenses cannot

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)

68,601 (ii) Reimbursement of expenses paid / payable : Rs.25,91,064. (iii) Reimbursement of expenses paid / receivable : Rs.2,04,13,805. The assessee conducted its T.P. Study apply the Transactional Net Margin Method (TNMM) as the most appropriate method (MAM) and adopted “Operating Profit” to “Operating Cost “ as the profit level indicator (PLI). After conducting a search using ‘Prowess

M/S. AIRBUS GROUP INDIA PRIVATE LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE- 1(1)(1), BANGALORE

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

Bench: Shri Chandra Poojari & Smt. Beena Pillai

92D of the Act, in good faith and with due diligence. 4.3 Rejecting the benchmarking/ comparability analysis carried out by the Appellant in the TP documentation and in conducting a fresh comparability analysis for the software engineering and design services based on the application of additional filters in determining the arm’s length price. 4.4 Using data, which

M/S CAE FLIGHT TRAINING (INDIA) PRIVATE LIMITED,BANGALORE vs. ITO, BANGALORE

In the result, Both the C

Bench: Shri Arun Kumar Garodia & Smt. Beena Pillai

92D of the Act read with Rule ioD of the Rules; 3.3. not appreciating that the CCDs were issued in INR and therefore, the Prime Lending Rate ("PLR") followed by the Indian Public Sector Banks would be the ideal basis for determining the arm's length nature of interest payments on CCDs. 4. Assuming even if above grounds (Ground No.1

ITO, BANGALORE vs. M/S CAE FLIGHT TRAINING PVT. LTD.,, BANGALORE

In the result, Both the C

Bench: Shri Arun Kumar Garodia & Smt. Beena Pillai

92D of the Act read with Rule ioD of the Rules; 3.3. not appreciating that the CCDs were issued in INR and therefore, the Prime Lending Rate ("PLR") followed by the Indian Public Sector Banks would be the ideal basis for determining the arm's length nature of interest payments on CCDs. 4. Assuming even if above grounds (Ground No.1