9911796707
TMI Blog2022 (4) TMI 1579X X X X Extracts X X X X X X X X Extracts X X X X ..... ent year 2011-12. 2. Brief facts of the case are as under: 2.1 Briefly, the Ld.AR submitted that, the assessee provides mobile value-added services to telecommunication operators in India and abroad. The services include, ring back tones, contests, jokes and cricketer etc., which enable subscribers to personalise their mobile phones, and thereby enhance user experience. It is submitted that, the assessee enters into a contract with telecom operators in India and abroad for providing services to customers of telecom operators. In respect of customers situated outside India, once the contract is signed with the customer, the assessee establishes subsidiaries in the respective countries for furtherance of its business. The Ld.AR submitted t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ign country which is contrary to the transfer pricing provisions. The Ld.AR submitted that, the entire adjustment made by the Ld.AO/TPO, is on the premise that, the services were availed by the said subsidiaries/branches in their respective jurisdiction from assessee, which is contrary to the facts. 3. The Ld.AR submitted that during the transfer pricing proceedings, since he did not have an opportunity to furnish the relevant agreements to demonstrate that the services rendered by OnMobile USA was not utilised by the entity situated in Latin American countries. The Ld.AR submitted that, the assessee has now procured all the relevant agreements based on which, the correct working model of assessee could be understood by the revenue authori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... encies. Since the loan have been denominated in foreign currency and interest is payable in the same currency the interest on outstanding interest cannot be imputed by taking Indian PLR. Reliance is placed on following decisions Decision of Hon'ble Delhi High Court in case of CIT vs. Cotton Naturals (I)(P.) Ltd., reported in (2015)55 taxman.com 523. Decision of Hon'ble Bombay High Court in case of PCIT vs. India Debt Management (P) Ltd., reported in (2019) 106 taxman.com 55. Decision of coordinate bench of this Tribunal in case of Praxair India Pvt.Ltd. vs. DCIT in IT(TP)A No.506/B/2016 by order dated 06/12/2021. The Ld.AR DR relied on orders passed by authorities below. 9. We have perused the decisions relied b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o assessee to consider the claim after verification of the documents filed by assessee in accordance with law. Accordingly these grounds raised by assessee stands allowed for statistical purposes. Revenues appeal: 12. The only effective ground, in appeal filed by revenue is ground No.2 and 3. It is submitted that the other grounds are general in nature and therefore do not require any adjudication. 13. Ground No.2 raised by revenue challenging the action of the DRP in directing grant of depreciation of the rate of 60% on NMS CG/TX cards, switches et cetera on the ground that these items do not come within the definition of "computer". 14. Both sides submitted that, this issue stands covered in favour of assessee by following decisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 10A(1) of the Act which reads as under: "10A (1) Subject to the provisions of this section, a deduction of such profits and gains as are derived by an undertaking from the export of articles or things or computer software for a period of ten consecutive assessment years beginning with the Assessment Year relevant to the previous year in which the undertaking begins to manufacture or produce such articles or things or computer software, as the case may be, shall be allowed from the total income of the assessee." Thus, from perusal of the relevant extract of Section 10A(1), it is evident that the deduction under Section 10A of the Act is available to an undertaking if sale proceeds of articles of things of computer software exported o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ribunal has rightly held that the assessee is entitled to benefit of deduction under Section 10A of the Act. Thus, the third substantial question of law is also answered against the revenue and in favour of the assessee." 18. We note that, the disallowance was made by the Ld.AO following his predecessor's opinion for assessment year 2008-09. As the Hon'ble Karnataka High Court has upheld the claim of deduction under section 10A, on identical facts for assessment year 2008-09 respectfully following the above view we hold that assessee is entitled to deduction under section 10A of the Act. Accordingly this ground raised by revenue stands dismissed. In the result appeal filed by assessee stands allowed for statistical purposes and appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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