DELL INTERNATIONAL SERVICES INDIA PRIVATE LIMTED(AS SUCCESSOR TO EMC IT SOLUTIONS INDIA PVT LTD.,),BANGALORE vs. DCIT, CIRCLE-2(2)(1), BANGALORE

ITA 2890/BANG/2025Status: DisposedITAT Bangalore20 April 2026AY 2024-2518 pages
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What were the facts?

The assessee company's return of income was processed, leading to additions for GST/sales tax refunds, margin on capital asset conversion, and bad debts recovered. The CIT(A) partly allowed the appeal, directing verification for bad debts and credit of advance tax/TDS, while upholding additions for GST refunds and margin on capital assets.

What did the Tribunal hold?

The Tribunal held that GST/sales tax/service tax refunds are not taxable if not routed through the profit and loss account, and the addition for margin on capital assets constituted double taxation as it was voluntarily offered to tax. Interest levies were directed to be recomputed.

What were the issues?

Whether GST/sales tax/service tax refunds are taxable when not routed through P&L, and if an addition made by CPC for margin on capital assets amounts to double taxation.

Which sections of the Income-tax Act were involved?

Section 41(1),Section 28(i),Section 143(1)(a),Section 234B,Section 234C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A’’BENCH: BANGALORE

Before: SHRI WASEEM AHMED & SHRI KESHAV DUBEY

For Respondent: Mr. Azhar Zain V.P., D.R
Hearing: 05.02.2026Pronounced: 20.04.2026

PER KESHAV DUBEY, JUDICIAL MEMBER:

These appeals at the instance of the assessee are directed against the separate orders of the ld.Addl/JCIT(A)-2, Mumbai both dated 11.11.2025 vide DIN & Order No: ITBA/APL/S/250/2025- 26/1082483582(1) for the AY 2023-24 & vide DIN & Order No. ITBA/APL/S/250/2025-26/1082483853(1) for the AY 2024-25 passed u/s. 250 of the Income Tax Act, 1961 (in short “theAct”). Since the issue in both appeals is common, these are clubbed together, heard t

The order continues below.

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