M/S.IBS SOFTWARE SERVICES P. LTD,TRIVANDRUM vs. THE DCIT, TRIVANDRUM

ITA 601/COCH/2017Status: DisposedITAT Cochin13 November 2025AY 2013-14Bench: SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)1 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that overdue receivables and advances to AEs constitute international transactions under Section 92B. It upheld the disallowance of employee contributions to PF/ESI as per the Supreme Court ruling and the disallowance of interest on loans to subsidiaries due to lack of substantiation.

What were the facts?

The assessee, a software company, had international transactions with associated enterprises. The Transfer Pricing Officer (TPO) proposed an adjustment of INR 31,09,52,334/-. The Assessing Officer also made additions for loss on onerous contracts and disallowances for employee contributions to PF/ESI and interest expenses.

What were the issues?

Whether overdue receivables and advances to AEs are international transactions and whether employee contributions to PF/ESI made after the statutory due date but before the return filing date are deductible.

Which sections of the Income-tax Act were involved?

Section 92B,Section 36(1)(va),Section 43B,Section 36(1)(iii)

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(2)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, COCHIN BENCH, COCHIN

[ Per Rahul Chaudhary, Judicial Member:

1.

The present appeal preferred by the Assessee is pertaining to Assessment Year 2013-2014 challenging Final Assessment Order, dated 18/09/2017, passed by the Assessing Officer under Section 143(3) read with Section 92CA read with Section 144C of the Income Tax Act, 1961 [hereinafter referred to as ‘the Act’], as per the directions issued by Dispute Resolution Panel - 2, Bangalore [for short ‘DRP’], on 07/08/2017 under Section 144C(5) of the Act.

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 92B

All 1,158 judgments and leading authorities on Section 92B →

Recent GST High Court judgments

Search GST case law →