9911796707
TMI Blog2018 (7) TMI 2003X X X X Extracts X X X X X X X X Extracts X X X X ..... ENT DR. VINEET KOTHARI J.- 1. This appeal is filed by the Revenue purportedly raising substantial questions of law arising from the order of the Income-tax Appellate Tribunal, Bangalore Bench "B", Bangalore, in IT [TP]A No. 1292/Bang/2014 dated September 4, 2015, relating to the assessment year 2009-10. 2. This appeal has been admitted on October 3, 2017 to consider the following substantial questions of law formulated by the Revenue in the memorandum of appeal : "1. Whether, on the facts and in the circumstances of the case, that the Tribunal is right in law in excluding M/s. Bodhtree Consulting Ltd., M/s. Infosys Ltd. and M/s. Tata Elxsi Ltd., even when the decision followed by the Tribunal in the case of Cisco Systems ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m the assessee. The learned authorised representative drew the attention of the Bench to page 12 of the annual report of 'Bodhtree' - 'segment wise and product wise performance' wherein it is stated that : 'Bodhtree has only one segment, namely, software development. Being a software solutions company, it is engaged in providing open and end-to-end web solutions, off shoring data management, data warehousing, software consultancy, design and development of solutions, using latest technologies.' 13.2.2 The learned authorised representative further submitted that the website of 'Bodhtree' suggests that it is a global information technology consulting and product engineering services provider with its key ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herein this company was excluded from the list of com parable to a software development service provider as it is a software product company. 13.4 Per contra, the learned Departmental representative supported the orders of the authorities below in retaining this company as a comparable to the assessee in the case on hand. 13.5.1 We have heard the rival contentions and perused and carefully considered the material on record including the judicial pro nouncement relied on by the assessee. We find that a Co-ordinate Bench of this Tribunal in the case of CISCO Systems (India) Pvt. Ltd. (supra) for the assessment year 2009-10, following the decisions of the Mumbai Benches of the Income-tax Appellate Tribunal in Nethawk Networks Pvt. Ltd. in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eing a market leader engaged in software products, owned significant intellectual property rights and intangibles, had significant research and development activities, brand attributable profits etc. At para 26.2 of its order the Co-ordinate Bench of this Tribunal in the case of CISCO Systems (India) Pvt. Ltd. (supra) has held as under : . . . 14.4.2 Following the aforesaid decision of the Co-ordinate Bench of this Tribunal in the case of CISCO India Pvt. Ltd. (supra) for the assessment year 2009-10, we hold that 'Infosys' cannot be regarded as a comparable to a captive software development service provider, like the assessee in the case on hand, and consequently direct the Assessing Officer/Transfer Pricing Officer to exclude thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .T.A. Nos. 536/2015 carried with 537/2015 dated June 25, 2018 (Principal CIT v. Softbrands India Pvt. Ltd. [2018] 406 ITR 513 (Karn)) wherein it has been observed that unless the finding of the Tribunal is found ex facie perverse, the appeal under section 260A of the Act, is not maintainable. The relevant portion of the judgment is quoted below for ready reference (page 541 of 406 ITR) : "Conclusion: A substantial quantum of international trade and transactions depends upon the fair and quick judicial dispensation in such cases. Had it been a case of substantial question of interpretation of pro visions of Double Taxation Avoidance Agreement (DTAA), interpretation of provisions of the Income-tax Act or overriding effect of the trea ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
