M/s Fidelity Business Services India Private Limited , Bangalore vs Assistant Commissioner of Income Tax Circle-3(1)(1), Bangalore

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

BEFORE SHRI N. V. VASUDEVAN, VICE PRESIDENT AND
SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER
IT(TP)A No.308/Bang/2017
Assessment Year : 2012-13

M/s. Fidelity Business Services India Pvt. Ltd.,
Pinehurst, Embassy Golf Links Business Park,
Off Intermediate Ring Road,
Bangalore – 560 071.
PAN : AAACF 6175 E

Vs. 

The Assistant Commissioner of Income Tax,
Circle – 3(1)(1),
Bangalore.

Assessee by : Shri. G. C. Srivastava, Advocate
Revenue by : Shri. B. K. Panda, CIT(DR)(ITAT), Bangalore

Date of hearing : 15.12.2020
Date of Pronouncement : 17.12.2020

O R D E R

Per N. V. Vasudevan, Vice President

This appeal by the assessee is directed against the order dated 08.12.2016 of ACIT, Circle – 3(1)(1), Bangalore (hereinafter referred to as the Assessing Officer,“AO” in short) passed u/s.143(3) read with Section 144C(13) of the Income Tax Act, 1961 (Act) in relation to AY 2012-13.

2. The Assessee in engaged in the business of provision of Information Technology enabled Services (ITeS), to its wholly owned holding company. In terms of the provisions of Sec.92-A of the Act, the Assessee and its wholly owned holdingcompany were Associated Enterprises ("AEs"). In terms of Sec.92B(1) of the Act, thetransaction of providing ITeS was “international transaction” i.e., a transaction between two or more associated enterprises, either or both of whom are nonIT(residents, in the nature of purchase, sale or lease of tangible or intangible property, or provision of services, or lending or borrowing money, or any other transaction having a bearing on the profits, income, losses or assets of such enterprises, and shall include a mutual agreement or arrangement between two or more associated enterprises for the allocation or apportionment of, or any contribution to, any cost or expense incurred or to be incurred in connection with a benefit, service or facility provided or to be provided to any one or more of such enterprises. In terms of Sec.92(1) of theAct, any income arising from an international transaction shall be computed having regard to the arm’s length price. In this appeal by the Assessee, the dispute is with regard to determination of Arms’ Length Price (ALP) in respect of the aforesaid two international transaction of rendering ITeS to the AE.

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