ITA 1025/DEL/2022: Infoaxon Technologies’ Challenge to Assessment Order for AY 2017-18 Allowed
In a notable case before the Income Tax Appellate Tribunal, Delhi Bench ‘E’, presided over by Shri G.S. Pannu, President, and Shri Saktijit Dey, Judicial Member, Infoaxon Technologies India Pvt. Ltd. opposed the order under Section 263 of the Income-Tax Act, 1961 passed by the learned Principal Commissioner of Income-Tax, Ghaziabad concerning the assessment year 2017-18. This article delves into the crux of the case, the arguments presented, and the final judgment that led to the case being allowed in favor of the appellant, marking a significant win.
Background and Proceedings
The case, designated as ITA No. 1025/Del/2022, revolves around the appellant, Infoaxon Technologies India Pvt. Ltd., a corporate entity based in Meerut, engrossed in the business of software development. The contention arose from the validity of the assessment order dated 29.03.2022 for the AY 2017-18. The case garnered attention due to the appellant’s claim of foreign tax credit under Section 90 of the Act, a point of scrutiny during the assessment proceedings selected through CASS.
The Controversy and Tribunal’s Analysis
The principal grounds for the challenge were the assessment order’s alleged shortcomings in verifying the claim of foreign tax credit, adherence to procedural requirements for claiming such credits, and the overall conduct of the assessment that was argued to be both erroneous and prejudicial to the interest of the Revenue. Detailed inquiries were taken up concerning the claim of foreign tax credit, receipts from foreign jurisdictions, examination of conveyance expenses, and scrutiny into the purchase of fixed assets, among others. The tribunal meticulously examined the arguments, the procedural adherence by the appellant, and the merits of the assessment made by the Assessing Officer.
Judgment and Implications
The tribunal’s decision to allow the appeal rested on several pivotal observations. It highlighted that the gr
ITA 1025/DEL/2022: Infoaxon Technologies’ Challenge to Assessment Order for AY 2017-18 Allowed
