CIT v. EHPT India P Ltd.

Genpact Services Llc, Gurgaon vs. ACIT, Circle-1(3)(1) Int. Taxation, Delhi

In the result, the Assessee’s appeal is allowed

Bench: Shri Shamim Yahya & Shri Vimal Kumara.Yr. : 2018-19 M/S Genpact Services Llc Vs. Assistant Commissioner Of Plot No. 22A & B, Sector-18, Income Tax, Udyog Vihar, Circle – Int. Tax 1(3)(1), Gurgaon, New Delhi Haryana-122002 (Pan: Aaccg3353P) (Appellant) (Respondent)

…re very much available before the ld TPO. We find that the cost allocation on the basis of “headcount” has been affirmed to be an appropriate allocation key by the Hon’ble jurisdictional High Court in the case of CIT Vs. EHPT India Private Limited reported in 350 ITR 41 (Del). Similar was the view taken by the coordinate bench of this tribunal in the case of Orange Business Services India Solution Pvt Ltd Vs. DCIT in ITA No. 6928/Del/2017 for AY 2013-14 dated 15.07.2021. Further, the coordinate bench of Mumbai tribunal in the case of Cable and Wireless India Ltd Vs. DCIT in ITA No. 6075/Mum/2017 for AY 2012–13, 7…

Genpact Services Llc, Gurgaon vs. ACIT, Circle-1(3)(1), International Taxation, New Delhi

In the result, the appeal of the assessee is allowed

Bench: Shri M. Balaganesh & Shri Yogesh Kumar U.S.Genpact Services Llc, Vs. Acit, Plot No. 22A & B, Circle-1(3)(1), Sector-18, Udyog Vihar, International Taxation, Gurgaon, Haryana New Delhi (Appellant) (Respondent) Pan: Aaccg3353P

…re very much available before the ld TPO. We find that the cost allocation on the basis of “headcount” has been affirmed to be an appropriate allocation key by the Hon’ble jurisdictional High Court in the case of CIT Vs. EHPT India Private Limited reported in 350 ITR 41 (Del). Similar was the view taken by the coordinate bench of this tribunal in the case of Orange Business Services India Solution Pvt Ltd Vs. DCIT in ITA No. 6928/Del/2017 for AY 2013-14 dated 15.07.2021. Further, the coordinate bench of Mumbai tribunal in the case of Cable and Wireless India Ltd Vs. DCIT in ITA No. 6075/Mum/2017 for AY 2012–13, 7…

Concentrix Daksh Services India Pvt. Ltd., Gurgaon vs. ACIT, Circle-4(2), New Delhi

In the result, the appeal of the assessee is partly allowed

Bench: Sh. Saktijit Dey, Vice-Dr. B. R. R. Kumar

…the case of CIT vs Bilahari Investment Pvt. Ltd. and reproduced only a part of the extract of the Supreme Court ruling referred to by the Hon'ble Delhi 4 Concentrix Daksh Services India Pvt. Ltd. High Court in the case of CIT vs. EHPT India (P.) Ltd. [2013] 350 ITR 41 (Delhi). 4.5 Without prejudice to above, the Learned AO has erred in applying an incorrect ratio to reallocate the expenses between the SEZ and taxable units. 4.6 On the facts and circumstances of the case and in law, the Hon'ble DRP, has erred in not adjudicating sub-ground 4.5 above relating to application of incorrect ratio by the Learned AO to…

M/S. Interarch Building Products Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeal of the assessee is partly allowed

Bench: Shri O.P. Kant & Shri Kuldip Singh[Through Video Conferencing] Assessment Year: 2006-07 Interarch Building Vs. Dcit Products Pvt. Ltd., Circle -11 (1) Farm No.8 Khasra New Delhi No.56/23/2, Dera Mandi Village, Mehrauli New Delhi-110047 Pan No.Aaaci0106J (Appellant) (Respondent)

…rial undertaking eligible for deduction u/s 80IB and 80IC of IT Act: (i) 350 ITR 366-371 Zandu Pharmaceuticals Works Ltd. vs. CIT (ii) 273 ITR 152 (Mad) Bush Boake Allen India Pvt. Ltd. vs. ACIT (iii) 394 ITR 73 (Bom) CIT vs. Hindustan Unilever Ltd. (iv) 350 ITR 41-51 (Del) CIT vs. EHPT India P. Ltd. 20. In view of the above arguments, the learned Counsel submitted that deduction u/s 80IB in respect of the profits of the ‘Greater Noida’ unit and profits u/s 80IC in respect of ‘Pant Nagar’ unit be worked out without allocating the ‘head office’ expenses because such expenses has no direct and first degree n…

Orange Business Services India Solutions Pvt. Ltd., Gurgaon vs. DCIT, Circle-3, Gurgaon

Bench: Shri N.K. Billaiya & Shri Kuldip Singh(Through Video Conference)

…nt” basis was rejected by the TPO, DRP and later by the ITAT in the impugned order. 4. Mr. Srivastava, learned counsel appearing on behalf of the assessee relied upon the judgment of the this Court in Commissioner of Income Tax vs. EHTP India Pvt. Ltd. (2013) 350 ITR 41(Del.). In that decision, the Court indicated broadly that if headcount had been the basis for proportionate allocation of costs, there was no objection or illegality attached to it. The Court of course in that case was cognizant of the circumstances that the principle of headcount had been applied consistently in the past by the assessee. Learned…

M/S Continental Carriers vs. Commissioner of Income Tax

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE VIBHU BAKHRU

…that the AO had been inconsistent in the methodology adopted for computing the deduction under Section 80-O of the Act and the same was not considered by the ITAT. Mr Kaushik then referred to the decision of this Court in CIT v. EHPT India P. Ltd.: (2013) 350 ITR 41 (Del) and on the strength of that decision contended that in cases where there is no statutory or fixed formula for allocation of expenditure between exempt and non-exempt income, the method of allocation of expenditure should be one which is consistently accepted by both the parties - the assessees and the Revenue - in the past; the method…

M/S Continental Carrier vs. Commissioner of Income Tax

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE VIBHU BAKHRU

…that the AO had been inconsistent in the methodology adopted for computing the deduction under Section 80-O of the Act and the same was not considered by the ITAT. Mr Kaushik then referred to the decision of this Court in CIT v. EHPT India P. Ltd.: (2013) 350 ITR 41 (Del) and on the strength of that decision contended that in cases where there is no statutory or fixed formula for allocation of expenditure between exempt and non-exempt income, the method of allocation of expenditure should be one which is consistently accepted by both the parties - the assessees and the Revenue - in the past; the method…

M/S Continental Carrier vs. Commissioner of Income Tax

…that the AO had been inconsistent in the methodology adopted for computing the deduction under Section 80-O of the Act and the same was not considered by the ITAT. Mr Kaushik then referred to the decision of this Court in CIT v. EHPT India P. Ltd.: (2013) 350 ITR 41 (Del) and on the strength of that decision contended that in cases where there is no statutory or fixed formula for allocation of expenditure between exempt and non-exempt income, the method of allocation of expenditure should be one which is consistently accepted by both the parties - the assessees and the Revenue - in the past; the method…

Ranbaxy Laboratories Ltd., New Delhi vs. Addl. CIT, New Delhi

In the result, we direct the AO to reduce the book profit u/s 115JB of the Act by the amount of reversal of the provision of Rs

Bench: Sh. I. C.Sudhir Judicialmember & Sh. Prashant Maharishia.Y.: - 2008-09 Ranbaxy Laboratories Ltd. Vs Acit 12Th Floor, Devika Tower, Range -15 6, Nehru Place New Delhi New Delhi Pan No. Aaacr0127N (Appellant) (Respondent)

…itors and hasbeen ITA 196 Del 2013 Ranbaxy Laboratories limited V ACIT A.Y. 2008-09 Page 77 of 134 accepted in the assessments completed in the past. He further relied on the decision of Honourable Delhi high court in the case of CIT vs. EHPT India Pvt Ltd: 350 ITR 41 (Del) where in allocation of expenses based on head counts andturnover is upheld to stress that there is no bar in law for common expenses to be allocated on a scientific/ rational basis to the eligible unit. j) Therefore,he submitted it from above method of accounting followed by the assessee that itamounts to maintenance of separate books of ac…