Case Number: ITA 705/DEL/2021
Appellant: BSC C&C JV, New Delhi
Respondent: NeAC, New Delhi
Assessment Year: 2016-17
Case Filed On: 2021-06-14
Order Type: Final Tribunal Order
Date of Order: 2022-11-30
Pronounced On: 2022-11-30
Before: Shri G.S. Pannu, Hon’ble President and Shri Challa Nagendra Prasad, Judicial Member
This appeal was filed by the assessee against the order dated 30.04.2021 passed by the National e-Assessment Centre, Delhi for the assessment year 2016-17 under section 143(3) read with section 144C(13) and section 144B pursuant to the directions of the DRP under section 144C(5) of the Act dated 08.03.2021. The main issues raised by the assessee involved the assessment of total income, computation of Gross Total Income, disallowance of deductions under section 80IA, transfer pricing adjustments, and disallowance related to late deposit of EPF contributions and retention money.
The assessee argued that the National e-Assessment Centre erred in assessing the total income at Rs. 152.93 crores as against the returned total income of NIL. The tribunal directed the Assessing Officer to recompute the total income by considering the revised return of income filed by the assessee on 31.03.2018.
The assessee claimed a deduction under section 80IA for infrastructure development projects. The Assessing Officer disallowed this deduction, arguing that the assessee was merely a contractor and not a developer, and that the contractees were not recognized under section 80IA(4)(i)(b). The tribunal, however, found that the assessee met the criteria for being considered a developer and that the projects were indeed eligible for deduction under section 80IA.
The tribunal addressed the transfer pricing adjustments made for alleged interest receivable on advance given to BSC C&C JV Nepal Pvt. Ltd. and interest paid to Mr. B. Krishnalah. The tribunal found that the Assessing Officer/TPO’s adjustments were not justified and needed reconsideration in light of the assessee’s submissions and supporting documents.
The tribunal agreed with the assessee that the disallowance for late deposit of EPF contributions was unwarranted since the contributions were deposited before the due date of filing the income-tax return.
The disallowance of Rs. 2.33 crores on account of retention money released by the employer was also addressed. The tribunal directed the Assessing Officer to reassess this disallowance considering the revised return of income filed by the assessee.
The ITAT allowed the appeal for statistical purposes, directing the Assessing Officer to correctly compute the total income and reassess the disallowances and adjustments as per the tribunal’s findings. The case highlights the complexities involved in deductions under section 80IA, transfer pricing issues, and procedural aspects of income assessment.
This summary provides an overview of the key points and conclusions from the ITAT order in the case of BSC C&C JV vs. NeAC, New Delhi, for the assessment year 2016-17.
BSC C&C JV vs. NeAC, New Delhi – ITAT Tribunal Order Analysis
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