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IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION
SLP (CC) No. 6789 OF 2015

IN THE MATTER OF:

Knoah Solutions Private Ltd.

.Petitioner

Versus
Income Tax Officer, Ward 2(1), Hyderabad

Respondent

LIST OF DATES & EVENTS

28.10.2004

A transfer pricing report was prepared by the auditors of the

Petitioner, in respect of the international transactions
entered into by the Petitioner.

29.10.2004

The Petitioner filed return of income in the prescribed from

admitting income of Rs. 5,286 (Rupees five thousand two
hundred

eighty six only)

after claiming deduction of

Rs.1,13,94,701 (Rupees one crore thirteen lacs ninety four

thousand seven hundred one only) under section 10B of the
Income Tax Act.

09.01.2006

The Assessing Officer (Income Tax Officer, Ward 2(1),

Hyderabad referred the matter to Transfer Pricing Officer.

02.02.2006

A notice under Section 92CA (2) of the Income Tax Act, 1961
was issued by the Office of the Additional Commissioner of
Income Tax (Transfer Pricing) to the Petitioner Company in
connection with the computation of arms length price and
also

calling

upon

them

to

furnish

certain

relevant

documents.
Notice dated 02.02.2006 at Annexure - P1,
Pages 27-29, SLP Paperbook

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17.02.2006

The Petitioner Company in response to the Notice dated

02.02.2006 issued under Section 92CA (2) of the Act filed its
reply on the said date.
Reply dated 17.02.2006 at Annexure - P2,
Pages 30-34, SLP Paperbook

22.12. 2006

The Transfer Pricing Officer passedsubmitted the transfer

pricing Order under Section 92CA(3) of the Actreport and
recommended the Assessing Officer to make an addition of
Rs. 95,87,498 (Rupees ninety five lacs eighty seven thousand
four hundred ninety eight only) to the income returned by
the Petitioner.
Order dated 22.12.2006 at Annexure P3,
Pages 35-87, SLP Paperbook

29.12.2006

The Assessing Officer passed assessment order determining

the taxable income of the Petitioner at Rs. 95,92,784
(Rupees ninety five lacs ninety two thousand seven hundred
eighty four only) [i.e. Rs. 95,87,498 (Rupees ninety five lacs
eighty seven thousand four hundred ninety eight only) plus
Rs. 5286 (Rupees five thousand two hundred eighty six
only)]. The Assessing Officer has adopted the arms length
price of services rendered by the Petitioner estimated for a
sum of Rs.12,03,80,873 (Rupees twelve crores three lacs
eighty thousand eight hundred seventy three only) and made
a specific addition of Rs.95,87,498 (Rupees ninety five lacs
eighty seven thousand four hundred ninety eight only) to the
income returned making the balance tax payable by the
Petitioner at Rs. 45,75,181 (Rupees Forty five lakhs seventy
five thousand one hundred eighty one only). (See Page 93)

Assessment Order dated 29.12.2006 at Annexure P4,

Pages 88-93, SLP Paperbook

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02.02.2007

The Petitioner, aggrieved by the Assessment Order dated

29.12.2006 passed by the Assessment Officer, has filed an
appeal before the Learned Commissioner of Income Tax
(Appeals) III, Hyderabad (herein after referred to as the CIT
(Appeals).
Appeal before Honble the CIT (Appeals) at
Annexure P5, Pages 94-106, SLP Paperbook
Statement of Facts at Annexure P5, Pages 100-102, SLP
Paperbook
Grounds of Appeal at Annexure P5, Pages 103106, SLP Paperbook

19.02.2009

The Learned CIT (Appeals) Commissioner of Inbased on the

written submissions filed by the Petitioner, remand reports
called for and the rejoinders filed by the Petitioner, has
passed an order sustaining the additions made by the
Assessing Officer.
Order dated 19.02.2009 at Annexure P6,
Pages 107-130, SLP Paperbook
Findings at Pages 112-124, SLP Paperbook
Conclusion at Pages 124-125, SLP Paperbook

30.04.2009

Aggrieved, the Petitioner filed an appeal before the Learned

Income Tax Appellate Tribunal, Hyderabad (herein after
referred to as the ITAT). The Petitioner challenged the order
of the Learned CIT (Appeals) Commissioner of Income Tax
(Appeals) on various grounds of inconsistencies in the order
passed by the Learned CIT (Appeals).
Grounds of appeal dated 30.04.2009 at Annexure P7,
Pages 131-136, SLP Paperbook Commissioner (Appeals).

25.01.2012

The Learned Income Tax AppellateITAT Tribunal without

appreciating the case put forth by the Petitioner, dismissed
the same. The Learned ITAT Income Tax Appellate Tribunal
upheld the order of the Learned CIT (Appeals) Commissioner
of Income Tax (Appeals) but in the process gavehas given a

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perverse finding upholding the appellate order on different
grounds, which themselves are unsustainable in law.
Order dated 25.01.2012 at Annexure P8,
Pages 137-157, SLP Paperbook
Findings at Pages 155-156, SLP Paperbook
Conclusion at Page 156, SLP Paperbook

16.07.2013

The Petitioner being aggrieved by the said Order of the

Learned ITAT then appealed to the Honble High Court of
Andhra Pradesh. The Honble High Court vide the impugned
judgment and final Order dismisseded the appeal of the
Petitioner on the ground that there is no question of law
arising from the order of the Learned ITATIncome Tax
Appellate Tribunal, despite the facts of the case giving rise to
substantial questions of law which merited consideration by
the Honble High Court.

Impugned judgment at Pages 1- 4, SLP Paperbook

30.03.2015

Being aggrieved by the impugned judgment and final Order

of the Honble Andhra Pradesh High Court, the Petitioner
herein preferred the instant Special Leave Petition.
Special Leave Petition at Pages 5-17