AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2023 (6) TMI 1268
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....e Transfer Pricing Documentation ["TP documentation"] maintained by the Appellant by invoking provisions of sub-section (3) of 92C of the Act. 3. The learned AO, learned TPO and the Hon'ble DRP have erred in not considering multiple year financial data of the comparable companies while determining the Arm's Length Price ["ALP"] as prescribed under Rule 10B(4) of the Income Tax Rules, 1962 ["the Rules"]. 4. The learned AO, learned TPO and the Hon'ble DRP have erred in using data for FY 2012-13 available at the time of assessment proceedings, instead of the data available at the time of preparing the TP documentation as mandated under Rule 10D(4) of the Rules for comparable companies in determining ALP. 5. The learned AO, learned TPO and Hon'ble DRP have erred in rejecting comparability analysis performed by the Appellant in the TP documentation. Also, the learned AO, learned TPO and Hon'ble DRP have erred in conducting a fresh comparability analysis by modifying/ introducing certain quantitative filters in determining the ALP. 6. The learned AO, learned TPO and the Hon'ble DRP have erred in rejecting companies having different financial year ending da....
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....ing appropriate adjustment towards the risk difference between the Appellant vis-a-vis the comparable companies. B. Corporate Tax 17. Restriction of depreciation on computer servers, software's and networking equipments to the extent of 15% * The learned AO and Hon'ble DRP have erred in disallowing depreciation amounting to INR 9,178,532 on the networking equipments and servers by treating the same as "plant and machinery" instead of "computers" which are eligible for depreciation @ 60%. * The learned AO and Hon'ble DRP have erred in not appreciating the facts stated by the Appellant during the course of hearing that why networking equipments and servers should be treated as part of block of computers & accessories. * The learned AO and Hon'ble DRP have erred in not appreciating that the networking equipments and servers cannot work in isolation and hence partake the character of computers. 18. Re-computation of deduction under section 10AA of the Act a. Reduction of expenditure incurred in foreign currency, communication expenses and insurance expenses from export turnover only * The learned AO has erred in considering expenses incurred in foreign c....
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....ises ("AEs") situated in the United States of America ("US") and in countries other than in the US, the arm's length price agreed between the Competent Authorities of USA and India in the Mutual Agreement Procedure invoked under the India-US DTAA, ought to be applied to the transactions entered into by the Appellant with its AEs situated in countries other than in the US and to the US AE transactions which were not covered under the MAP resolution period (January 2013 to March 2013) for the SWD segment." 2.1 The Ld. Counsel submitted that no new facts needs to be considered in order to dispose of the additional grounds raised by the assessee. It is submitted that, the additional grounds raised do not require verification of any new facts. The Ld.AR, thus prayed for the admission of additional grounds so raised by assessee. 2.2 On the contrary, the Ld.CIT.DR though opposed admission of the additional ground, could not bring anything on record which would challenge such a right available to assessee under the Act. 2.3 We have perused the submissions advanced by both sides in light of records placed before us. We note that the additional grounds are directly connected with the....
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.... assessee and the AE that took place during the calendar period for A.Ys. 2010- 11, 2011-12, 2012-13 and 2013-14. 5. It is the submission of the assessee in the Additional Ground no. 16a that, the rate applied to the transactions from April 2012-December 2012 may be considered for the transactions between assessee and the US-AE, that took place between January 2013 to March 2013. He placed reliance on the decision of Hon'ble Bombay High Court in case of J.P. Morgan Services India (P.) Ltd. reported in [2019] 105 taxmann.com 40 (Bombay). 5.1. It is thus submitted that the mark-up on cost agreed upon for the transaction with US-AE as agreed in the MAP may be considered for the transaction with US-AE for such period that is not covered in the MAP which is from January to March for the financial year under consideration. 6. On the contrary, the Ld.CIT.DR submitted that the principle applied by Hon'ble Bombay High Court in case of J.P. Morgan Services India (P.) Ltd. (supra) was that the transaction was considered in a consolidated manner by the Ld.TPO, and therefore the same rates were upheld to the non-AE transaction. She therefore submitted that this issue may be verified and henc....
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....at the networking equipment broadly comprises of servers, routers, server hard disk and other network accessories. These form an essential part of computer and function as an input processor, storage and output devices, and cannot operate independent of a computer system. Therefore, it is submitted that the said items are eligible for depreciation at the rate of 60%. On the contrary, the Ld.DR placed reliance on orders passed by authorities below. 9.3 This issue is also covered by the decision of Hon'ble Karnataka High Court in case of a) PCIT vs. Mphasis Ltd. reported in (2021) 128 taxmann.com 138 b) OnMobile Global Ltd. vs. ACIT reported in (2014) 45 taxmann.com 346 (Bangalore-Trib) which was affirmed by the Hon'ble High Court in (2021) 129 taxmann.com 254 (Karnataka) c) CIT vs. BSES Yamuna Powers Ltd. reported in (2013) 40 taxmann.com 108 (Delhi) 9.4. We have considered the rival submissions. We find that the issue is no longer res-integra and has been decided by the Hon'ble Karnataka High Court in the case of Mphasis Ltd. (supra) wherein the Hon'ble Karnataka High Court held that computer accessories such as switches and routers form part of peripherals of comp....