A.T. KEARNEY LIMITED,GURGAON vs. DEPUTY COMMISSIONER OF INCOME TAX, NEW DELHI

ITA 1933/DEL/2025Status: DisposedITAT Delhi15 July 2026AY 2022-2318 pages
AI SummaryRemanded

What were the facts?

The assessee, a UK-based company, transferred its India branch business to a subsidiary. It claimed expenses against interest income from tax refunds, arguing these expenses were necessary to maintain its Permanent Establishment (PE) in India. The Assessing Officer (AO) disallowed these expenses, considering the business transfer as a cessation.

What did the Tribunal hold?

The Tribunal noted that the complete details of the expenses claimed were not on record and had not been examined by the AO or DRP. Therefore, the matter was set aside and remitted to the AO for a de novo assessment.

What were the issues?

Whether expenses incurred by a branch office after business transfer are allowable against interest income, and whether such expenses are incidental to carrying on business or maintaining a PE.

Which sections of the Income-tax Act were involved?

Section 28(i),Section 29,Section 90(2)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH, D: NEW DELHI

Before: SHRI VIKAS AWASTHY & SHRI BRAJESH KUMAR SINGH

For Appellant: Ms. Ishita Farsaiya, Adv. &, Ms. Vanshika Taneja, Adv
For Respondent: Shri M.S. Nethrapal, CIT(DR)
Hearing: 21.04.2026Pronounced: 15.07.2026

PER BRAJESH KUMAR SINGH, AM,

This appeal filed by the assessee is directed against the Final Assessment Order dated 27.01.2025 (FAO) passed u/s 143(3) r.w.s. 144C(13) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) pursuant to the directions of the Hon’ble Dispute Resolution Panel (DRP) vide order dated 17.12.2024 u/s 144C(5) of the Act for Assessment Year (AY.) 2022-23. ITA No.- 1933/Del/2025 A.T. Kearney Limited.

2.

Brief facts of the case: The assessee M/s A.T. Kearney Limited is a company incorporated in United Kingdom (U.K.) and during the year was engaged in the busi

The order continues below.

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