Brevo CRM Solutions Private Limited Vs Assessment Unit (ITAT Delhi)
The assessee, Brevo CRM Solutions Private Limited, filed an appeal before the Income Tax Appellate Tribunal (ITAT), Delhi, challenging the final assessment order passed under Sections 143(3), 144C(13) and 144B of the Income-tax Act for Assessment Year (AY) 2022-23. The appeal arose from transfer pricing adjustments relating to software development services and interest on outstanding receivables. The assessee also challenged the levy of interest, initiation of penalty proceedings, and raised an additional legal ground contending that the assessment order was invalid because it had been passed in the name of a non-existent company.
The return of income for AY 2022-23 had originally been filed by Silver Line IT Solutions Private Limited. The case was selected for complete scrutiny under CASS on account of large international transactions in services coupled with low profitability and addition of assets eligible for higher depreciation. During assessment, the matter was referred to the Transfer Pricing Officer (TPO), who proposed transfer pricing adjustments in respect of software development services and interest on outstanding receivables. After objections were considered by the Dispute Resolution Panel (DRP), the Assessing Officer (AO) passed the final assessment order making a transfer pricing adjustment of ₹4,11,07,866, comprising ₹4,11,04,320 relating to software development services and ₹3,545 relating to interest on outstanding receivables.
