COGNIZANT TECHNOLOGY SOLUTIONS INDIA PRIVATE LIMITED,CHENNAI vs. ACIT,CENTRAL CIRCLCE1(1),CHENNAI, CHENNAI

By directing learned the AO to re-compute the deduction, the learned CIT(A) has given an opportunity to the AO, which is not provided under any provisions of the Act, to recompute a deduction and which is otherwise time-barred. Short-grant of Advance Tax and Tax deducted at Source in the assessment order passed for the subject year 5.The learned CIT(A) has failed to give a clear direction to the learned AO that the Appellant is entitled to the credit for the advance taxes paid by the entities which have been amalgamated during the year into the Appellant and grant such credit to the appellant. 6.The learned CIT(A) has failed to give clear directions to the learned AO to give credit to the Appellant for tax deducted at source in the name of entities which have amalgamated into the Appellant during the year, especially as the Appellant has included the corresponding receipts in its total income on which such taxes were deducted by the payers. 7.The learned CIT(A) has erred in redirecting the learned AO to allow credits as per law, when the learned AO by not taking into cognizance of the plea of the Appellant during the assessment proceedings, has failed to recognize that the Appellant is entitled to the credits of Advance Tax and Tax deducted at source suffered by the Amalgamated entities, as per law. 8.The learned CIT(A) should have directed the learned AO to grant the credits for the prepaid taxes irrespective of whether the system functionality of the revenue authorities provides for granting such credits or not.”

Short grant of deduction u/s 10AA 2.1 During appellate proceedings, a remand report was sought from Ld. AO on the issue of quantum of deduction u/s 10AA. The findings of the same have been rendered in para 13.3 of the order which read as under:- The assessee company had claimed deduction u/s 10AA amounting to Rs.3352,66,38,320/- in the return of income and the same was allowed in the intimation u/s 143(1) of the IT Act by the CPC in the intimation. While conducting the scrutiny assessment the system has wrongly taken the figure as Rs.3059,08,99.232/- instead of Rs. 3352,66,38,320/-, again due to some technical glitches.

Short grant of Advance tax and TDS belonging to amalgamated entities 3.1 In this regard, Ld. CIT(A), in para 14.2, directed Ld. AO to verify the advance tax credit available to the assessee and allow the credit as per law after due verification. 3.2 It is the submissions of Ld. AR that few of the entities got amalgamated with the assessee. The income of those entities was offered to tax by the assessee. Therefore, the credit of advance tax and TDS credit belonging to those entities would be allowable to the assessee and those entities have not claimed the credit thereof. The Ld. AR further submitted that the details of the same would not be reflected in Form 26AS of the assessee. These details have been placed on page nos. 336 and 337 of the paper book. 3.3 Considering the plea of Ld. AR, we direct Ld. AO to verify assessee’s claim as per the submissions made by Ld. AR and allow the credit thereof as per law. The corresponding grounds stand allowed for statistical purposes. Conclusion 4. The appeal stand allowed to the extent indicated in the order. Order pronounced on 26th July, 2023. Sd/- Sd/- (V. DURGA RAO) (MANOJ KUMAR AGGARWAL) �ाियक सद!/JUDICIAL MEMBER लेखासद! / ACCOUNTANT MEMBER चे5ई Chennai; िदनांक Dated : 26-07-2023 DS आदेशकीTितिलिपअ&ेिषत/Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. !"थ�/Respondent 3. आयकरआयु>/CIT 4. िवभागीय!ितिनिध/DR 5. गाडCफाईल/GF