PR. Commissioner of Income Tax-2, Delhi v. M/S Birlasoft (India) Ltd.

Delhi High Court · 09 Jul 2019 · 2019:DHC:7415-DB
S. Muralidhar; Talwant Singh
ITA 587/2019
2019:DHC:7415-DB
tax appeal_dismissed Significant

AI Summary

The Delhi High Court dismissed the Revenue's appeals, upholding the ITAT's direction to benchmark international transactions by internal comparison of net margins despite differing views of the TPO and DRP.

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$-37 and 46 HIGH COURT OF DELHI
ITA 587/2019
PR.COMMISSIONER OFINCOME TAX-2,DELHI Appellant
Through: Mr.Zoheb Hossain,Senior Standing Counsel for Revenue
VERSUS
M/S BIRLASOFT(INDIA)LTD. Respondent
Through: Mr.NeerajJain,Mr.Aniket D.
Agrawal,Advocates AND
ITA 596/2019
PR.COMMISSIONER OFINCOME TAX- 2,DELHI Appellant
Through: Mr.Zoheb Flossain,Senior Standing Counsel for Revenue
VERSUS
M/S BIRLASOFT(INDIA)LTD. Respondent
Through: Mr.Neeraj Jain, Mr.Aniket D.
Agrawal,Advocates
CORAM:
JUSTICE S.MURALIDHAR JUSTICE TALWANT SINGH
09.07.2019
CM APPL.30360/2019(delay in re-filing the appeal)in ITA 587/2019&
CM APPL.30366/2019(delay in re-filing the appeal)in ITA 596/2019
ORDER

1. For the reasons explained in the applications, the delay in re-filing the appeals is condoned.The applications are allowed. ITA 587/2019and596/2019 Page[1] of[2] 2019:DHC:7415-DB r"i ITA 587/2019 and ITA 596/2019

2. The Revenue's present appeals Court are directed against the common order dated 9"^ August 2018 ofthe Income Tax Appellate Tribunal(ITAT) in ITA Nos.1028 and 7180/Del/2017for the Assessment Years(AYs)2012- 13 and 2013-14.

3. The question urged is whether the ITAT erred in giving directions to the effect that the international transactions should be benchmarked by making internal comparison on the net margin earned by the assessee from its associated enterprises with profit earned by it from the unrelated parties, without considering the detailed analysis and speaking order of both the TPO and the DRP.

4. The same question urged in the Revenue's appeal involving the same Assessee for AY 2009-10 was not entertained by this Court in the order dated 15^'^ April 2015 in ITA No.44/2015 {Commissioner ofIncome Tax Delhi-2 v. Birla SoftIndia Ltd.).

5. Accordingly,the present appeals are also dismissed.

S.MURALIDHAR,J. TALWANT SINGH,J. JULY 09,2019 m