Concentrix Daksh Services India Pvt. Ltd. vs DCIT, Circle 4 (2), Delhi – ITA No.809/Del./2022

In a significant ruling by the Income Tax Appellate Tribunal (ITAT) Delhi Bench ‘I’, New Delhi, on the 21st day of December, 2022, the appeal filed by Concentrix Daksh Services India Pvt. Ltd., Gurgaon against the order of the Assessing Officer dated 31.03.2022 under section 143(3) read with section 144(C)/144B of the Income-tax Act, 1961 was partly allowed.

Background of the Case

The case, identified as ITA No.809/Del./2022, pertains to the assessment year 2017-18 and revolves around a dispute between the appellant, Concentrix Daksh Services India Pvt. Ltd., and the respondent, the Deputy Commissioner of Income Tax (DCIT), Circle 4 (2), Delhi.

Appeal and Proceedings

Appeal Grounds: The appellant raised multiple grounds in their appeal, including issues on transfer pricing adjustments, corporate tax adjustments, and incorrect income considerations leading to excessive levy of interest under section 234C and initiation of penalty proceedings under section 270A, among others.

During the proceedings, the assessee’s counsel highlighted a willingness to not press Grounds No.2 and 3, considering these were covered under an Advanced Pricing Agreement (APA), effectively dismissing these grounds. Similarly, Ground No.5 was withdrawn by the assessee, referencing a judgment by the Hon’ble Apex Court in Checkmate Services P. Ltd. vs. CIT, leading to its dismissal.

Rectification and Adjustments

In particular, the appeal spotlighted errors in computation and adjustment pertaining to deductions under section 10AA regarding the incorrect turnover and profits from its Gurgaon Unit. The appellant had already moved a rectification petition in this regard, which, if allowed by the Assessing Officer, would not be pressed further.

The ITAT, taking into consideration the pleas and submissions, remitted certain issues back to the file of the Assessing Officer for examination and decision based on correct facts and as per law.

Conclusion and Judgment

The tribunal’s decision, presided by members Shri Shamim Yahya, Accountant Member, and Ms. Astha Chandra, Judicial Member, resulted in the appeal being partly allowed for statistical purposes. This partial allowance marks a significant consideration in the intricate matters of tax and transfer pricing disputes within the jurisdiction.

The case underscores the importance of diligence and accuracy in tax filings and the role of judicial mechanisms in resolving complex disputes, providing a precedent for similar cases.

This detailed analysis encapsulates the essence and outcomes of ITA No.809/Del./2022, offering insights into the procedural and substantive aspects that shaped the final judgment.

Concentrix Daksh Services India Pvt. Ltd. vs DCIT, Circle 4 (2), Delhi – ITA No.809/Del./2022