Income Tax Appellate Tribunal - Pune
M/S. Symantec Software (I) Pvt. Ltd.,, ... vs Deputy Commissioner Of Income-Tax, ... on 30 January, 2019
आयकर अपीऱीय अधिकरण, पुणे न्यायपीठ पुणे में
IN THE INCOME TAX APPELLATE TRIBUNAL
PUNE BENCH "A", PUNE
श्री डी. करुणाकरा राव , लेखा सदस्य
एवं श्री ववकास अवस्थी, न्याविक सदस्य के समक्ष
BEFORE SHRI D.KARUNAKARA RAO, AM
AND SHRI VIKAS AWASTHY, JM
आिकर अपील सं . / ITA No.461/PUN/2016
वनधाारण वर्ा / Assessment Year : 2011-12
The Dy. Commissioner of Income Tax,
Circle-6, Pune .......अपीलाथी / Appellant
बनाम / V/s.
M/s. Symantec Software (India) Pvt. Ltd.,
EON Free Zone, 5th Floor,
Wing 1, Cluster B, Plot No.1,
Survey No.77, MIDC,
Knowledge Park, Kharadi,
Pune - 411004
PAN : AAACV6015F ......प्रत्यथी / Respondent
प्रत्याक्षेप सं./CO No.29/PUN/2018
नििाारण वर्ा / Assessment Year : 2011-12
(out of ITA No.461/PUN/2016)
M/s. Symantec Software (India) Pvt. Ltd.,
EON Free Zone, 5th Floor,
Wing 1, Cluster B, Plot No.1,
Survey No.77, MIDC,
Knowledge Park, Kharadi,
Pune - 411004
PAN : AAACV6015F ... प्रत्याक्षेपक/ Cross objector
Vs.
The Dy. Commissioner of Income Tax,
Circle-6, Pune .... प्रत्यर्थी / Respondent
Assessee by : S/Shri Porus F. Kaka, Manish K. Kanth and
Rajendra Agiwal
Revenue by : Shri O.A. Mao, CIT
2
ITA No.461/PUN/2016
CO No.29/PUN/2018
सुनवाई की तारीख / घोषणा की तारीख /
Date of Hearing : 30.01.2019 Date of Pronouncement : 30.01.2019
आदे श / ORDER
PER D. KARUNAKARA RAO, AM
The captioned appeal is filed by the Revenue against the order of DCIT, Circle-6, Pune, dated 27-01-2016 for the A.Y. 2011-12. The assessee has also filed Cross Objections against appeal of Revenue.
2. Briefly stated relevant facts include that the assessee company e-filed original return of income declaring total income of Rs.74,57,07,730/-. The assessee company has undertaken certain international transactions during the year under consideration. The Transfer Pricing Officer (TPO) has made an adjustment of Rs.48,92,29,241/- to the arm's length price determined by assessee in respect of international transactions entered into with its associated enterprises. After considering the objections filed by assessee and remarks of the TPO, the Dispute Resolution Panel (DRP) gave directions to the Assessing Officer for inclusion / exclusion of certain comparables. Thereafter, the Assessing Officer passed final assessment order giving certain relief to the assessee under section 143(3) r.w.s. 144C and 92CA of the Act. Aggrieved with the order of Assessing Officer, the Revenue is in appeal before us. The assessee also filed Cross Objections against appeal of Revenue.
3ITA No.461/PUN/2016 CO No.29/PUN/2018
3. At the outset, Ld. AR for the assessee submitted that the appeal filed by the Department is liable to be dismissed on account of low tax effect. He further submitted that even if all the grounds raised by Revenue are allowed, the net tax effect would be below the monetary limit prescribed by CBDT vide No.3/2018 dated 11th July, 2018. In this regard, the Ld. AR filed written submission, which are extracted below:
"The Department's grounds of appeal raises the inclusion / exclusion of certain comparables decided in favour of the assessee by the Hon'ble Dispute Resolution Panel (DRP).
On giving effect to the Hon'ble DRP's order, the entire adjustment on transfer pricing has been deleted.
Even if the Department's appeal was to be allowed, in respect of the comparables, they are agitating before the Hon'ble Tribunal, the assessee's margin falls within 5% range permitted by law and hence, there would be no addition.
In view of this, Department's appeal is barred by Circular No.3 of 2018 dated 11th July, 2018 as being below the monetary limit of Rs.20 lakhs before the Hon'ble Tribunal."
4. The Ld. AR submitted that CBDT vide Circular (supra) has raised the monetary limit for filing of appeal by the Department before the Tribunal to Rs.20 Lakhs, therefore, the appeal filed by the Department is not maintainable.
5. On the other hand, the Ld. DR for the Revenue defended the assessment order. However, the Ld. DR fairly admitted that the tax effect in the present appeal is less than Rs.20 Lakhs.
6. Both sides heard. On going through the facts of the case and the orders of the Revenue, the total tax effect involved in the present appeal is undisputedly less than Rs.20 Lakhs. The CBDT circular No.3/2018 dated 11th July, 2018 raised the monetary limit of tax effect for filing of 4 ITA No.461/PUN/2016 CO No.29/PUN/2018 appeal by the Department before the Tribunal to Rs.20 Lakhs. The circular applies to the pending appeals of the Department before the Tribunal too. Thus, in view of the CBDT circular, we are of the opinion that the present appeal of the Revenue is liable to be dismissed on account of low tax effect without going into the merits of the case.
7. In view of our decision dismissing the appeal of Revenue, the Cross Objections filed by assessee become infructuous.
8. In the result, the appeal of the Revenue and Cross Objections of assessee are dismissed.
Order pronounced in the open Court on 30th day of January, 2019.
Sd/- Sd/- (ववकास अवस्थी /VIKAS AWASTHY) (डी. करुणाकरा राव/D. KARUNAKARA RAO) न्याविक सदस्य/JUDICIAL MEMBER लेखा सदस्य/ACCOUNTANT MEMBER
पुणे / Pune; ददनाां क / Dated : 30th January, 2019.
GCVSR आदे श की प्रविवलवप अग्रेवर्ि / Copy of the Order forwarded to :
1. अपीलाथी / The Appellant.
2. प्रत्यथी / The Respondent.
3. The DRP-, Mumbai;
4. The DIT (TP/IT), Mumbai;
5. दवभागीय प्रदतदनदध, आयकर अपीलीय अदधकरण, "Bench A" Pune.
6. गार्ड फ़ाइल / Guard File.
आदे शानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अदधकरण, पुणे / ITAT, Pune