Case Number: ITA 5571/DEL/2019
Appellant: Fiserv India Pvt. Ltd., New Delhi
Respondent: Assistant Commissioner of Income Tax (ACIT), Circle-9(1), New Delhi
Assessment Year: 2013-14
Result: Allowed
Case Filed on: 2019-06-26
Order Type: Final Tribunal Order
Date of Order: 2020-07-03
Pronounced on: 2020-07-03
The case involves an appeal filed by Fiserv India Pvt. Ltd., New Delhi against the order of the Assistant Commissioner of Income Tax (ACIT), Circle-9(1), New Delhi. The appeal pertains to the assessment year 2013-14 and challenges various disallowances made by the Assessing Officer (AO) and upheld by the Commissioner of Income Tax (Appeals) [CIT(A)].
The appeal was filed by Fiserv India Pvt. Ltd. against the order of the Commissioner of Income Tax (Appeals)-34, New Delhi dated 22.04.2019. The primary issues in the appeal were the disallowances made by the AO on account of various provisions for expenses and stamp duty paid on leased business premises.
The assessee raised the following grounds of appeal:
The case was heard before the Income Tax Appellate Tribunal (Delhi Bench “B+SMC”) in New Delhi on 16th March 2020. The bench comprised Shri Sudhanshu Srivastava, Judicial Member, and Shri Prashant Maharishi, Accountant Member.
Fiserv India Pvt. Ltd. was represented by Shri Sachit Jolly, Advocate, and Shri Vasudevan, Advocate, while the respondent was represented by Ms. Ashima Neb, Senior DR. The appeal challenged the disallowances made by the AO and sustained by the CIT(A) on various grounds.
The appellant’s counsel argued that the disallowances made by the AO were incorrect as the provisions for expenses were made on a reasonable basis and in line with the mercantile system of accounting followed by the appellant. The counsel further argued that the stamp duty paid on the leased business premises should be treated as revenue expenditure as it did not create any new asset or confer any enduring benefit to the appellant.
The respondent’s representative, Ms. Ashima Neb, Senior DR, argued that the disallowances made by the AO were justified as the provisions for expenses were contingent in nature and the stamp duty paid on the leased business premises was capital in nature.
The Tribunal considered the details and arguments presented by both parties. The Tribunal held that the provisions for expenses made by the appellant were on a reasonable basis and should be allowed as business expenditure under Section 37(1) of the Income Tax Act, 1961. The Tribunal also held that the stamp duty paid on the leased business premises should be treated as revenue expenditure and allowed as a deduction for the assessment year 2013-14.
The Tribunal allowed the appeal filed by Fiserv India Pvt. Ltd., directing the AO to delete the disallowances made on account of provisions for expenses and stamp duty paid on the leased business premises. The final order was pronounced on 3rd July 2020 by Shri Sudhanshu Srivastava, Judicial Member, and Shri Prashant Maharishi, Accountant Member.
Members Present:
Shri Sudhanshu Srivastava, Judicial Member
Shri Prashant Maharishi, Accountant Member
Document Reference:
Copy forwarded to:
1. Appellant: Fiserv India Pvt. Ltd., Regus Elegance, Level-2, Jasola District Centre, Old Mathura Road, Delhi
2. Respondent: ACIT, Circle-9(1), New Delhi
3. CIT
4. CIT(A)
5. DR: ITAT
Assistant Registrar, ITAT, New Delhi
Appeal by Fiserv India Pvt. Ltd. against ACIT, Circle-9(1), New Delhi in ITA No. 5571/DEL/2019
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