Ita/318/2021 Of The Pr. Commissioner Of Income Tax v. M/S. Anz Support Services India Pvt Ltd

Digitallysigned byBHARATHI SLocation:HIGHCOURT OFKARNATAKA ITA No. 318 of 2021 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 30 DAY OF SEPTEMBER, 2024 PRESENT THE HON'BLE MR JUSTICE S.G.PANDIT AND THE HON'BLE MR JUSTICE C.M. POONACHA INCOME TAX APPEAL NO. 318 OF 2021 BETWEEN: 1. THE PR. COMMISSIONER OF INCOME TAX 5TH FLOOR, BMTC BUILDING 80 FEET ROAD, KORMANGALA BENGALURU - 560 095 2. THE INCOME TAX OFFICER WARD - 1(1)(1) PRESENT ADDRESS DCIT, CIRCLE - 1(1)(1) 2ND FLOOR, BMTC BUILDING 80 FEET ROAD, KORAMANGALA BENGALURU - 560 095 …APPELLANTS (BY SRI. SUSHAL TIWARI N.,ADVOCATE) AND:M/S. ANZ SUPPORT SERVICES INDIA PVT LTD EUCALYPTUS MANYATA EMBASSY BUSINESS PARK SEZ OUTER RING ROAD, NAGAVARA AND RACHENAHALLI VILLAGE K R PURAM HOBLI BENGALURU - 560 045 PAN. …RESPONDENT (BY SMT. TANMAYEE RAJKUMAR.,ADVOCATE) THIS ITA / INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED ABOVE, ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, BENGALURU IN IT(TP)A NO. 58/BANG/2019 DATED 06/08/2021 FOR ASSESSMENT YEAR 2014-2015 ANNEXURE-D AND CONFIRM THE ORDER OF THE DRP COMMISSIONER CONFIRMING THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-1(1)(1), BENGALURU AND ETC. THIS APPEAL, COMING ON FOR HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.G.PANDIT and HON'BLE MR JUSTICE C.M. POONACHA ORAL JUDGMENT (PER: HON'BLE MR JUSTICE S.G.PANDIT) Heard the learned counsel Sri. Sushal Tiwari. N., for appellants/Revenue and learned counsel Smt.Tanmayee Rajkumar, learned counsel for the respondent/assessee. 2. The Revenue is in appeal under Section 260-A of the Income Tax Act, 1961 (for short, ‘the Act’) questioning the correctness and legality of order dated 06.08.2021 passed by the Income Tax Appellate Tribunal, ‘A’ Bench, Bengaluru (for short, ‘Appellate Authority’) in IT(TP) A No.58/Bang/2019 for the assessment year 2014- 15, raising the following substantial questions of law: - 3 - “1. Whether on the facts and in the circumstances of the case, the Tribunal order can be said as perverse in nature as Tribunal has considered the realization period of 60 days which has been agreed under Advance Pricing Agreement for the realization of invoices pertaining to international transactions in ITeS Segment effective from 1/4/2017 onwards to the international transactions relating to A.Y.2014-15 ignoring that in Advance Pricing Agreement, it has been specifically mentioned that only for international transaction from 1/4/2017 onwards, a realization period of 60 days shall be allowed to the assessee in respect of transactions in IEST Segment and for each year, a clause which has been specifically applied for an assessment year cannot be applied by and large to any other assessment year?” 3. Learned counsel for the assessee submits that the tax effect in this appeal is less than Rs.2 Crores and therefore, the appeal should not be entertained at the instance of the revenue in view of the Circular No.09/2024 dated 17.09.2024 issued by the Central Board of Direct - 4 - Taxes. It is also submitted that the aforesaid Circular binds the revenue. 4. On the other hand, learned counsel for the revenue submits that he be granted liberty to revive the appeal in case the matter falls within the exceptions under the aforesaid Circular dated 17.09.2024 and Circular No.5/2024 dated 15.03.2024. 5. In view of the aforesaid submissions, the appeal is disposed of with liberty as prayed for by the learned counsel for the revenue. However, the question of law is kept open to be adjudicated in an appropriate proceeding. Sd/- (S.G.PANDIT) JUDGE Sd/- (C.M. POONACHA) JUDGE