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1.4 The aforesaid interim order ceases to have force on passing the final order on the appeal.
2. The facts of the case are that the assessee filed its return on 23.11.2006 declaring nil income. The assessee had computed the business income at ` 7,33,01,097/-, which was claimed to be not includible in the total income under the provisions of section 10A of the Income-tax Act, 1961. The return was processed u/s 143(1) and refund of ` 434,560/- was granted to the assessee. Thereafter, the case was selected for scrutiny and a notice u/s 143(2) dated 14.07.2008 was served on the assessee. In response thereto, Shri Vikas Aggarwal, Chartered Accountant, attended from time to time. The assessee is engaged in development of software used in various fields, which has been exported to Adobe Systems Inc., USA and Macromedia Ireland Limited, Ireland, both of them being associated concerns. The assessee has also provided marketing and support services to Adobe Systems Software Ireland Limited, Macromedia Neitherland BV and its subsidiaries, all being associated concerns. In the course of assessment proceedings, it was found that the assessee entered into international transactions with the associated concerns and the aggregate value of such transactions was declared at ` 37,12,95,276/-. The valuation of these transactions was referred to the Transfer Pricing Officer, who determined the arm's length price at ` 40,13,40,643/-, resulting in adjustment of ` 3,00,45,367/-. Therefore, it was proposed to enhance the total income of the assessee by an amount of ` 3,00,45,367/-. The matter was referred to the Dispute Resolution Panel ("DRP" for short) under the provisions of section 144C of the Act. The DRP heard S/ShriVijay Iyer and Anuj Khorana, authorized representatives from S.R. Batliboi & Co., Chartered Accountants. Detailed submissions in respect of grounds of objections were filed. After considering the order proposed by the AO and the objections, the DRP disposed off the matter by way of cryptic order upholding the adjustment proposed by the AO and disallowing the brought forward losses. For the sake of ready reference, paragraph no.6 of the order is reproduced below:-
3. The assessee has taken up a preliminary objection that the AO framed an order in the name of non-existing company, Adobe Software India Private Limited, which merged with Adobe Systems India Private Limited on account of the order of Hon'ble High Court dated 6.9.2007, under which the merger took place with effect from 01.04.2006. Therefore, the company as assessed ceased to exist on 01.04.2006. The assessment order was passed on 12.07.2010, much after this date of merger. It was submitted that all facts relating to merger are on record and, therefore, the ground may be admitted as it raises merely a pure question of law. For the admission of the ground, reliance has been placed on the decision of Hon'ble Supreme Court in the case of National Thermal Power Corporation Ltd. Vs. CIT (1998) 229 ITR 383. The ld. DR objected to the admission of the ground and it was mentioned that the DRP has mentioned the name Adobe Software India Private. Limited (Now amalgamated with Adobe Systems India Private Limited). Therefore, mentioning the name of Adobe Systems India Private Limited in the assessment order is merely a typographical error. 3.1 We have considered the facts of the case. We find that the facts regarding the ground are available on the file and the issue is purely an issue of law. Therefore, additional ground no. 2 is admitted, which is sufficient to deal with the controversy raised in both the grounds.
6. In the result, the appeal is treated as allowed for statistical purposes. This order was pronounced in the open court on 27th December, 2010.
Sd/- sd/- (C.L. Sethi) (K.G.Bansal) Judicial Member Accountant Member Date of order: 27th December, 2010. SP Satia Copy of the order forwarded to:- Adobe Systems India Private Ltd.,Noida. Addl. CIT, Noida Range, Noida. DRP, New Delhi. CIT The DR, ITAT, New Delhi. Assistant Registrar.