NTT GLOBAL DATA CENTERS & CLOUD INFRASTRUCTURE INDIA PRIVATE LIMITED (ERSTWHILE NETMAGIC IT SERVICES PRIVATE LIMITED),MUMBAI vs. DCIT-10 (3)(1), MUMBAI

ITA 2784/MUM/2023Status: DisposedITAT Mumbai07 February 2024AY 2015-16Bench: SHRI ABY T VARKEY, HON'BLE (Judicial Member), SHRI S. RIFAUR RAHMAN, HON'BLE (Accountant Member)26 pages
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What did the Tribunal hold?

The Tribunal held that the issue of disallowance of expenses (Ground No. 2) requires verification by the Assessing Officer. For Ground No. 3, the Tribunal found merit in the claim for foreign tax credit and remitted it to the Assessing Officer for verification.

What were the facts?

The assessee claimed finance lease rental payments and other expenses as revenue expenditure. The Assessing Officer and CIT(A) disallowed these claims, treating lease rentals as capital expenditure and other expenses as provisions. The assessee also claimed foreign tax credit which was not granted.

What were the issues?

Whether finance lease rental payments are revenue or capital expenditure, and whether certain expenses are allowable revenue expenses. Also, the eligibility for foreign tax credit.

Which sections of the Income-tax Act were involved?

Section 37(1),Section 40(a)(ia),Section 90(1)

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Income Tax Appellate Tribunal, MUMBAI BENCH “B”, MUMBAI

Before: SHRI ABY T VARKEY, HONBLE & SHRI S. RIFAUR RAHMAN, HONBLEShri Vijay Mehta, Shri Arpit Doshi & Shri S. Srinivasu

For Appellant: Shri Vijay Mehta, Shri Arpit Doshi &, Ms. Payal Mehta
For Respondent: Shri S. Srinivasu
Pronounced: 07.02.2024

PER S. RIFAUR RAHMAN (AM)

1.

This appeal is filed by the assessee against order of Learned Commissioner of Income-Tax (Appeals), National Faceless Appeal Centre, Delhi [hereinafter in short “Ld. CIT(A)”] dated 09.06.2023 for the A.Y.2015-16. NTT Global Data Centers & Cloud Infrastructure India Private Limited

2.

Assessee has raised following grounds in its appeal: -

“1 Disallowance of finance lease rental payments of INR 6,47,09,747/-:

1.

1 The order passed by CIT(A) is bad in law and ought to be quashe

The order continues below.

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