THE PR. COMMISSIONER OF INCOME TAX -2, BMTC COMPLEX, KORAMANGALA, BENGALURU v. HIGH

(BY SRI SANMATHI E I, ADVOCATE) AND: …APPELLANTS Digitally signed by B LAVANYA Location: HIGH COURT OF KARNATAKA

M/S INTEVA PRODUCTS INDIA AUTOMOTIVE PVT. LTD., (FORMERLY MERITOR LVS INDIA PVT. LTD.,) No. 69, AI-AMEEN TOWERS, HOSUR ROAD, NEAR LALBAGH MAIN GATE, BENGALURU - 560 027, PAN [REDACTED]. …RESPONDENT (BY SRI K R VASUDEVAN, ADVOCATE AND SRI ANKUR P D, ADVOCATE) THIS APPEAL IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 09/09/2020 PASSED IN M.P.NO.57/BANG/2020 IN IT(TP)A NO.205/BANG/2014, FOR THE ASSESSMENT YEAR 2009-2010. PRAYING THIS HON’BLE COURT TO: - 2 - NC: 2024:KHC:39733-DB ITA No. 220 of 2022 (1) DECIDE THE FOREGOING QUESTION OF LAW AND/OR SUCH OTHER QUESTIONS OF LAW AS MAY BE FORMULATED BY THE HON'BLE COURT AS DEEMED FIT. THIS APPEAL COMING ON FOR HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.G.PANDIT HON'BLE MR JUSTICE C.M. POONACHA ORAL JUDGMENT (PER: HON'BLE MR JUSTICE S.G.PANDIT) Heard the learned counsel Sri. Sanmathi.E.I., for appellants/Revenue and Sri.K.R.Vasudevan and Sri. Ankur P.D., learned counsel for respondent/assessee.

The Revenue is in appeal under Section 260-A of the Income Tax Act, 1961 (for short, ‘the Act’) questioning the correctness and legality of order dated

09.09.2020 passed by the Income Tax Appellate Tribunal, ‘B’ Bench, Bengaluru (for short, ‘Appellate Authority’) in M.P.No.57/Bang/2020 for the assessment year 2009-10. - 3 - NC: 2024:KHC:39733-DB ITA No. 220 of 2022

This Court, admitted the appeal on

08.04.2024 to consider the following substantial questions of law: “1. Whether on the facts and in the circumstances of the case, the Tribunal’s order can be said as perverse since Tribunal has excluded comparable’s M/s.Bodhtree Consulting Ltd., M/s.Tata Elxsi, M/s.Sasken Communication Technologies Ltd., M/s.Persistent Systems Ltd., without going into reasons assigned by Transfer Pricing Officer?

2. Whether on the facts and circumstances of the case and in law, Tribunal’s order can be said as perverse in nature as Tribunal has directed Transfer Pricing Officer to exclude M/s.Infosys Technology Ltd., and M/s.Larsen & Tourbo Infotech Ltd., on the ground of Turnover filter without appreciating that there is no direct relationship between turnover of comparable and the margin earned by the companies engage in Software - 4 - NC: 2024:KHC:39733-DB ITA No. 220 of 2022 Development Services and as such excluding of comparable-companies on ground of turnover filter is unwarranted?”

Learned counsels for the assessee submit that the tax effect in this appeal is less than Rs.2 Crores and therefore, the appeal should not be entertained at the instance of the revenue in view of the Circular No.09/2024 dated 17.09.2024 issued by the Central Board of Direct Taxes. It is also submitted that the aforesaid Circular binds the revenue.

On the other hand, learned counsel for the revenue submits that he be granted liberty to revive the appeal in case the matter falls within the exceptions under the aforesaid Circular dated 17.09.2024 and Circular No.5/2024 dated 15.03.2024.

In view of the aforesaid submissions, the appeal is disposed of with liberty as prayed for by the learned - 5 - NC: 2024:KHC:39733-DB ITA No. 220 of 2022 counsel for the revenue. However, the question of law is kept open to be adjudicated in an appropriate proceeding. Sd/- (S.G.PANDIT) JUDGE Sd/- (C.M. POONACHA) JUDGE MPK List No.: 2 Sl No.: 41