Karnataka High Court
Ge India Technology Centre Pvt Ltd vs Dispute Resolution Panel on 5 July, 2011
Bench: V.G.Sabhahit, Ravi Malimath
EN mg HIGH aeajm" Q?" §<ARE"€f3{§1:i_é<A AT 8AE\§GALORE_ .. _ ~. _ ~. mrw THEE THE 5" my Q?" ELELY 23:1 ?RESENT ?%éE HGNELE EVER. iusficg'fla.;gA§§%~,m:fé5°; V' ;'>;"s'»:V::>;.A THE Hm*5~:_E'~«T;§»(§ii%<<,32_.é$"r::§§ R4,駧;:%.j'?r:.A:_.'2__j;f'§<a*:,éT;% Wm" _;-é:*;*>.fri>"&,%4:+.::;,_:%x.§:>%.%:3:-Q" mi: 1 mm 8E"¥WEEE\E:
GE Er:-tiéa "€"e&:;"uf'§<3§ag--y (Zerftre Pvt. am, Hax:«§.i:;;g {Es RegEs*:_.ereG Office at = TEQZVZ; E ??3'§:'{ "'i*'jyf§¥i?C@f§é'"i"7(j" Raaci, »i--§ <;--z},d% §$§E§.agg§;~-.VxfhEtefEe§d, ' 3a_:2g}$;§.V;e7':=$m"Z56'€} {E66 t:'"'§y aim; ?r?ié'_5:1':é.c1;r'1'§":a,, Cimef FE::aaj":7c.f;.-553% @ff§C&33 xwfipgefiani " -.'{B.3!_§?§r%E érazzind Qatar, Samar C$LE%"E'SGE fer ' Lawxgerg Eng, 8: 3?; "E23 Amar Kumar, Aa?vs.,§ :53"
1 $§$§a..ste ?{8S§§¥.,§§E§E"E fiarzei, 14/3A, fit" Fimar, Rashtmtharza Parishad B§'§avan, Nrupatfiunga Road, aangaiare.
2 fiasisitant Cammissianer cf Encame "§"ax; Cérde 13 (3), ._ :4/3, 5*" Féamg RR Bhawan, Nrupathwjga Roa;_d., '~.__ 8ar:gaEare--~56G G31' V '_ A .
' ¢..~£2,:e'T${3j_s:>»»:_'i.iée:*:ts gay Srg. MV. S*e?s?<;ga;}:§':a§:aa;, x This varr:;:a:_%TVA;2§éaé..,%eg 'u§".;@§_r.:§$ectiam 4. 91' the Kamataka Eiigh Cwfi; A€:t :34ray'ing is 3&2 aside the Gréer p3s$efi in tfi€'.,WF.§€ §'>;et'i°3§:.%:;-sf} F-é;Q,'2§38§/-201$ dated 82.2931, This §fi£r%t«*a;:>§ea% '§<;;§r.#*:iiAé'1g:3r§?_;<:'4&§:er finai fiigpesaég this day; SASHA?-§I""E' fieiixgéeiietfi» {ifs-e famwéng: :'E"§1§'$'.__§V;'§A fiieé by the geiétianer in writ Qetétéen %%'%%-:%§:§,2§38§}%%2§2§'mag aggriezzeé gs; the arses" fiated 8-2--~2§1: ' '§é::a.%§:e§ gin-gig Eudga *9? ihés C§}é.:s't has fiégfiasecti 4 u§t?f'_'_7§§f3"EU_V'%'§'§'§§'.§€§§i§§§"£ by haiééag that {he éis*§::_i§n igsasaé he; fifitfiiifi Qafiieé fan: Saying the reimrani finanaéafi gzaar it aims abservefi that the assessae éés mternatioszai 'ararssa§§:§'::§%*:»T. exceedirég 93.33 croresx "fheyeforg, with the grim' app;§"t;::éi§'.§§_f the Commégséoner sf Enceme Tax, Samgaéore, a :"e.%'5e.:i«_§£jr*z»:::e7'~éz§$'c":$ mafia to the Trangfer Pricing Gffices', §ar'2_ga%9;";é,j; E'€:T>a1 e;ieré*2:..é;fa_éV .,,T f m'm5" Lgrsgth Wise as fie? the gsroafiaigiésé%3§'§e:t%0T§?z 532VC£ dz? u 'aha Act am the same wag d&te2"s?':§5*:@ d'V».,c:_§»M:': :2?~i"{}---~éO£"Z§'§ the lam Directmz, Transfer Prici:ig¥§«.i, .:$ar}§3fa§«<g:re;'a.;*§d reéééizeé in the affice sf the assesfsmg of1"'i'C'e2'.: ; by the Addétioaai YPQ Arms Length Prim t0 the ;ers:terj€..§f 35 required ':0 be mafia under:V::3"fe<::i':§§VV'§;5'§.§'of 'é:E;{§*--.§§.c'ome«Tax Act, 3%: and the Same wa$«"%;>:;j§ugfiV% '.{ §) _?E$§_.' E;i;.)t§C@ of ma aasassee an 'vv'L'£nVre?.é;3@éfi§§_¢__Af%:Q the saéfi rsotige the asgessee suA5mé€::}effi _Vh:3 _r2:;3'§«\_§ ."'-."§h@;"eaf:er the prsposed draft arder was 7' _S§rved: '~:;;up:--{:s":Htféé:..a'§;::§éi§ant 35 to why the excegs céaim cf V'77§s¢:;4,4§,2é?:§,?" ;Véhfiéuifi mt ha fiéfiaiégweé am Arms Length .1 --?}?§'<;':'5§f3§ <;§':3:er%}%§:1&§ 3;: me T98 ghouifi fie acceptaé ané since '~ '_é:.%2_e~ég§§£»§5A%':E fééefi an aggeaé {fie matter was ref@;"2*e$ ta 9%,? 'ma-
CTQJ .' V. °a:,;t¥§'€;%%:Et§J";'A 5% A'? 2§Q2»Q3 am magéé mi éa questéened ii'? the present gmaegfiérzgg.
(ii) We have mngidemd the suhméssésng mafia tize assesses, As ger $86.14-=4C saz%.Se<:.E, the-?Z.:>Rj§:' " .' E52 3 Case where ebjeeiién is receiveé; Em E}f1;--E>.. « %ssue such aéraatiens as it thinks fé§ f0r _3tm.3 $3" the Assessing Qfficer ta enabie :";§_z*:*i-._€:«i:$ €:abs*:-"2.fiEe1:e«. "
figs assessment. From {big §t'ig {:%,ear ti'?-at having powers ta éssuevs--..sf§':c_?': *é;dir;§c{:E'i3.n$'f"as; it thinks fétfi The sub~Sec:V.é whicfyv'E'm;z€.§fi§§fate€~s§%'ifiéfgws such §ub=«sec:.,5 stat:e5;:* §:f'*gat fife §':i'§_§*}eCt.EVtj*é;'_ »sf§fe§§' fa égz sub Secxfi shali §'§$_u5éf¥.*;'.afi::'%;n'._§i;.{:sia,ie::?§rag. W Draft arder V V V' V Gbjefiii5iiVi;'fi§ fi'E€'u.'é§,5'§3'3,f' ajfigéésseev' V Evéd enfié _ faé z';:i$h.éd : b*;?V %h§'T:3,::$'s;es'see Regort, %fu';;:.;j1§,;g,0:Vf "£1.§§;es$Eng officer, Vai:,:a'€§0r':
Qffigg.-;r"'a;:.r "'é":'a'r:s;:f és?' Wcing Qfficer GI" any Sifter is the $53!': owes';
E.v§fi5e.:*:z:e}V :.:'§i'>"E;%.e:f;:?h:V§e Vd by: 3%' cazgaeé is be miéected by, it, 3%:-zi f'§?,$s;sEts7 -339' 3:33: enquiry mafia by, er caugeé ta fie " :*'::a§é"§3§s§ 3:
ix} examine thig fiaém if {he assegsee szzfimits necesgary infarmaééen ghewéng that it $133 wmeé incsme frem erggiraeering éegign sgrvéceg am the same qasaééfgz far éeéuctios": ufs EGA. The AG shauid decéée the dam": 9%' the asgesgee En Ehés regaré on merét."
"fhe Qffiei' gasgefi by the SRP is appeaiabie under Sec%é;'§zi'2.'%§:-3::2:: :_. é Q'? the Act in view <13? the pmvégiams ef»AA>fSectEo;:-"1"'Q-é{Qff "§§1&V féndiragg of the SR? wouid gs.vL'.t§%.;ej».v.éA'ss¢sginé Qficer and in 30 far as ét reiates $0. §%:§VArj:%i'u'§i§§'r§»':VV--.§fEEved at as referrefi to abevg which i$ appeaiabie made; itfié 1nc0me--"§'a>< Act reafi with Rusé _'
3. HowViév§%r§v. bjVVé§fi'iVgAVA'.a7g:~%1::_'}r5;éved by Gireciéons issued ag §fes.;--°.;(_§2;) :r§far"_§'§e"::i«..iQ_«.vabm:e, the ameiéant flied Writ %€'i't§{3;3;V§'*~;§:ff:V,;.s?;§V§'é§$;fV;;?'i§i.1t'3;Q £§."':'Ei€%";é%¥'E§ that °é:?:€ saéé dérectésrag :7'n,__§ s$:..:eé by. iiéée é§{V§€j_v§%%2V§Va?: is bindéfig span ihe aggeggéng Gffiéléi' _ 'T%.$.3A:'E<';§E§y a2§?'é':§f2é2,§i.g;é';résé§c%§o:": and gazfferg fram Eaak sf imhersnz:
f§:;:%f_iévsf§jé»:':駧;*':--..aw whergfere the game is Eéabia is ba 38%: asifie, E 9% {E
8. The ieameé eaungei aggearirzg far the eespanfients submitted that direatéen weak (Ev) 3: iv} isgesed Emgagned in the Wm Petitien am in this appeai faiis within the jeréseéetsee of the DR? eneee Sectian :4eC{8)_',,.e€_e_§e._V_ wfzerefere the Gréer is jugiiféad and the iearfied -1~ has r%gE*"2i:§3: heié that there ES no véoiatéezgef the g3'§r':;;~.:x.:é':s};.:r2:h'é: of u Semen eeec emae eseumg es:-eeeeee {;e;=._e {eye}? 4'
9. Ir': reply the Eearned Senior c£:s:.:nS.§:E ag:)p:eaAr*i:*.g'~ V' the appeiiant Qrder did not ampose thatvVV;€?ec§¥':3.;:§:"3§'{;:';x} an appiicabie and therefore tfie 'EJRP which is not with reference E0 ;;sgfaVg5o_s;eV:§f order fig whehy wéiheuf:
je4.raVe3d§et§e:~gfA_'e'ee: this exercise jufisdictien by aefiting géven eeeefei etzeneéee E9 the v1'_c3:3.tent%0":*:*5 e:§ti*':;e" ieameé mange! epgearéség fer the partées
4. .é;2%§" $:m.:§._§1§zre1§ the mateeéai on remrée Q5 kw!' 'CM 1'?
3:
ix) (33 "$333 Qismte Reswutém ?an@§ may I mnfirm, reauce as" enhanae the variatfieng pmgmseé En the firaft: erder S0; hawever, that it ghaii mt 5}et1 H asiée any grepaseé variatmn er' issue any éire:<;*':-i~:#.§j:.__'__L' , "
urséer subwgectéon (5) far further Enquiry an_d__g3::a}'§s§V:::»Afg}:' H. 0%' me agsesgmeni erden {}§) Far the gurpeges cf this sefitioré",-«; ., "
(3) "Dispute Resoiutéan §'>'a::e%" meséftftg "
coiiegium of t%'1re.€ v4Cc*ijif§f3§fr1§::$EQr:s;~jrs.._«--Q? Irzcomewtax coVr1§.fi§t{::,e_ tE :§§;;\,{ ta":.;e5" ;P3§Ga%d.___f;;_:f5 this ;3urpose; :, : ' {D} "eiégébie a$sE*s$eé?"5__;r1?1e_ar*és:_¥ = ' {%)¢_._ any pfemon 'é:'2=..g;v§ze$e {Z&S@ the »1:2'-?1_V:f§::i;vi€;~:';g;*e:§§rred $0 En §L:b« '~s§::i:E@h' arégeg ag a co }:§e':fig.1é'r£.fie of the order 3? we " A' "§:<3:2§§;é:* ?fECi£'¥§ §f§ice;* pasgeé agyé 3%"
3 {} eeeeye epen Ee Ebe Qeeeeue Ze ieke easier': keeeieg fie 'flee:
the erevéeéene ef §ectierz 143(3) end {6} ef the A::€:.V;m_ T'-.. eccerdance with iawi if it is of the epénéee that the 'V' ef Semen we is net eepficabie fie me e§;:>:e§_§ent _-§'tV'E§"e'peE:"VtVe.V the appeiiant fie take aéventage ef the e4;de';?e;aeSeVei'~ Cone': mfiay eoéeéng tea: the d%:"ec";Vie'e.V..VissL--';ee:§: E;:y_ éiabfie its be eet eeéee eniy eyfgtéze §:eJ.:.*'is;f:fi.i:<;:§f.:AE0f;§ and not er': merits. Aceerdiegiyf wegaee"tiffseif,Vfei4E"e§5g=§§9§g.,,Qrfier:~
1) The erderj§a_sse§i~"b§;r.-£i:;e."iee:fee:% Judge in Writ Petiticge Z"mg:§[:933;ea{12-3.%:e;ej;;teé["él2»2011 e set 2} Th e W fit. a ppeaii e ! §.:o;'T%\sb§(}_.,
3) ;_d;§reetE'eAr:"'Fi§es .'{évv) S; (V) iesued in ihe erder ?bv._._%he Er: eare 21 ee sought for in the . '«~[';i?2?%::~?§ie§;»étéfie.Es eei aE~§;{:§€€ 4 éfifiawewr, wifi: ihe abmse Said ebsewa:§@_;j2$ regafdéng the right 32' revenue the Writ ?etEt§<;n "«§_§s_I'-~.V aiiewea 3} 'fine assessing cffémr shaéi ram:-§;r~;/mpéss_ <}ér§e«rs'% "z:é«s_ :§'&é5"= the directions ésguad by t?2e:"§3§<P ' e><C.§§;fv_{.j§'§';»§'~ éérectéens (Ev) & {V} ii: pa5':*$:";";.§ sf" thgé have been set a$ifi.é".~..,_A er cg? w Sé,/gm EEEQE