Date Of Judgment 25-07-2018, Ita v. The Commissioner Of Income Tax-Iii & Another

IN THE HIGH COURT OF KARNATAKA, BENGALURU DATED THIS THE 25 DAY OF JULY 2O18| PRESENT THR HON’BLEK DR.JUSTICE VINBBT KOTHARI ANT) THR HON’BLE MRS..JUSTICK S.SUJATHA I.T.A.No.196/2015 BETWEEN : UE DEVELOPMENT INDIA PVT LID.,.#116, (02, 7 KFLOOR,PRIDE HULKUL, LALBAGH ROAD.BANGALORE -560027 ALSO AT,|M/s. UE DEVELOPMENT INDIA PVT LTD.,‘QUORUM, #85, 7 CROSS|( BLOCK, KORAMANGALA|BANGALORE. REP. BY TTS COUNTRY|MANAGER Ms. HAYATIL BINTI TLAMZIR. . APPEHLLANT| (BY MRS NIVEDITHA THIMMAITAH, ADV. FORSRI K.ARUN KUMAR, ADV.) AND : 1.|THE COMMISSIONBR OF [INCOME TAX-IILC.R.BUILDING, QUEENS ROADC.R.BUILDING, QUEENS ROAD BANGALORE-560 O78. «|THER DEPUTY COMMISSIONEROF INCOME TAX, CIRCLE 12(9), | BANGALORE. ~ RESPONDENTS (BY SRI K.V. ARAVIND, ADV.) Date of Judgment 25-07-2018, ITA No.196/2015 UE Development India Pvt. Ltd., Vs. The Commissioner of Income Tax-III & Another. 2/4 THIS INCOMB TAX APPBAL IS FILED UNDER SECTION|260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER|DATED 30.08.2013 PASSED IN ITA NO.285/BANG/2012, FOR:THE ASSESSMENT YEAR 2005-2006, ANNEXURE-A, PRAYINGTO: lj. DECIDE THE FOREGOING QUESTION OF LAW AS.FRAMED OR SUCH OTHER QUESTIONS OF LAW AS MAY BEFORMULATED BY THIS HON’BLE COURT. 2]. SET ASIDE THE.ORDER OF THE INCOME TAX APPELLATE TRIBUNAL, “A”|BENCH DATED 30/08/2013, ANNEXURE-A, IN SO FAR AS THE.ISSUES.ANSWEREDAGAINSTTHEAPPELLATEIN|PROCEEDINGS No.285/BANG/2012 FOR AY 2005-06.| THIS APPEAL COMING ON FOR HEARING, THIS DAY,S. SUJATHA, J., DELIVERED THE FOLLOWING: JU DBiGMENT Mrs. Niveditha Thimmaiah, Adv. forMr. K.Arun Kumar,Adv. for Appellant — Assessee.Mr. K.V.Aravind,Adv. for Respondents — Revenue. This Appeal is filed by the Appellant-Assesseepurportedly raising substantial questions of law arisingfrom the Order of the Income Tax Appellate Tribunal,Bangalore|Bench‘A,Bangalore,1n IT|TPIANo.285/Bang/2012dated00.08.2013, relating to the|Assessment Year.2005-06. 2 |Theappealhas|beenadmitted|OT]07.02.2017|TO consider.thefollowingsubstantialquestion of law: 3/4 Whether the provisions of Chapter xXof the Income tax Act can be applied to the subjecttransaction when there is no shifting of profitsoutside India and where all parts of thetransaction occur only in India? b]Whether the Assessing Officer cantake into consideration net margin of comparableentities without also assessing the expected netprofit margin of the Appellant which arisesconsidering the peculiarfacts of the present case? c/Couldthearms-lengthpricingdetermination be resorted to when the price atwhich the transaction was entered into by theAppellant was beyond the control of the associateentity which had already been awarded acontract at a predetermined price by the NationalHighways Authority ofIndia? d/Canthe.TPOinmaking an.assessment of the Arms-Length Price ignore thecircumstances under which a contract wasawarded to the associate entity, the price atwhich it was so awarded, losses suffered and theother surrounding circumstances?” 3.|Learned counsel appearing for the parties submit that the appeals filed by the Revenue against the Date of Judgment 25-07-2018, ITA No.196/2015 UE Development India Pvt. Ltd., Vs. The Commissioner of Income Tax-III & Another. 4/4 order of the learned Tribunal challenged herein, hasbeen considered and dismissed by this Court on.12.07.2018 in I.T.A. Nos.52, 53, 54 and 55/2014. 4In view of the atoresaid submissions made| by the learned counsel appearing for the parties, thisappeal does not survive for consideration. Accordingly,the appeal stands dismissed. However, it is made clear that the rights andcontentions of the Assessee are left open to be agitatedin the appropriate proceedings, in the event of Revenuechallenging the orders of this Court in the appealsreferred to supra. NC. Sd/-.JUDGE. Sd/-.JU DGE