M/s. Micro Focus Software India Private Limited, Bangalore Joint Commissioner Of Income Tax, Circle- 4(1)(2), Bangalore

This Income Tax Appellate Tribunal case involved M/s. Micro Focus Software India Private Limited appealing against an assessment order for the 2015-16 financial year. The primary issues concerning the Arm's Length Price for international transactions were settled through an Advanced Pricing Arrangement (APA) between the company and the tax department. Additionally, the tribunal directed the Assessing Officer to review the company's claim for an advance tax credit of Rs. 7.25 Crores.

IN THE INCOME TAX APPELLATE TRIBUNAL
“A” BENCH : BANGALORE

BEFORE SHRI N. V. VASUDEVAN, VICE PRESIDENT AND
SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER

IT(TP)A No.2619/Bang/2019
Assessment Year : 2015-16

M/s. Micro Focus Software India Pvt. Ltd.,
65/2, Laurel Block D, Bagmane Tech Park,
C. V. Raman Nagar, Byrasandra,
Bangalore – 560 093.
PAN : AAACN 6992 K

Vs. 

The Joint Commissioner of Income Tax,
Circle – 4(1)(2),
Bangalore.

Assessee by : Smt. Vaidehi G, CA
Revenue by : None
Date of hearing : 14.12.2020
Date of Pronouncement : 16.12.2020

O R D E R

Per N. V. Vasudevan, Vice President

This is an appeal by the assessee against the final order of Assessment dated 31.10.2019 passed under section 143(3) r.w.s. 144C(13) of the Income Tax Act, 1961(hereinafter called ‘the Act’) by the JCIT, Circle 4(1)(2), Bangalore, relating to Assessment Year 2015-16.

2. At the time of hearing, the learned Counsel for the assessee submitted that the issues raised by the assessee in grounds 1 to 8 of the grounds of appeal before theTribunal which relates to determination of Arm’s Length Price in respect of international transactions pertaining to rendering software development services, information technology enabled services and marketing support services u/s.92 of theAct, have been settled under the Advanced Pricing Arrangement (APA) between the assessee and the Department. The aforesaid APA would also cover Assessment Year2015-16 and the dispute would be settled as per the terms of the APA. The assessee,accordingly, prayed for withdrawal of ground Nos.2 to 8. The prayer of the assessee is accepted and ground Nos.2 to 8 are dismissed as withdrawn.

3. The learned Counsel for the assessee submitted that in ground No.9, theassessee has sought prayer to grant credit for advance tax paid of Rs.7.25 Crores, claimed in the income tax returns, which was not allowed by the AO. Learned Counsel for the assessee made a prayer that the issue be remanded to the AO to examine the claim of the assessee and if found correct, allow necessary credit. The prayer made by the learned Counsel for the assessee is accepted and the AO is directed to examine the correctness of the claim made by the assessee and if foundcorrect, to allow appropriate credit in accordance with law. Ground No.9 is accordingly treated as allowed for statistical purposes.

4. In the result, the appeal is treated as allowed for statistical purposes.

Order pronounced in the open court on this 16th day of December, 2020.

Sd/-                                                            Sd/-
(CHANDRA POOJARI)                            ( N. V. VASUDEVAN)
Accountant Member                               Vice President

Bangalore.
Dated: 16.12.2020.
/NS/*

Copy to:
1. Appellants 
2. Respondent
3. CIT 
4. CIT(A)
5. DR 
6. Guard file

By order
Assistant Registrar,
ITAT, Bangalore.