Infinera India Pvt. Ltd. Vs JCIT (ITAT Bangalore)
The assessee challenged the assessment order dated 23.10.2019 passed by the Assessing Officer for assessment year 2015-16 pursuant to directions of the Dispute Resolution Panel. The appeal involved transfer pricing adjustment, disallowance of repairs and maintenance expenditure, deduction under section 80G of the Income-tax Act, 1961, an alternative depreciation claim and deduction of education cess.
The assessee withdrew all grounds relating to transfer pricing adjustment after submitting that a bilateral Advance Pricing Agreement for assessment years 2016-17 to 2020-21, with a rollback option covering assessment years 2014-15 and 2015-16, had dissolved the transfer pricing adjustment for the year under consideration. The Tribunal permitted withdrawal of those grounds and dismissed them as not pressed.
On repairs and maintenance expenditure, the Assessing Officer had initially disallowed 50% of the expenditure as capital in nature. After the assessee furnished details before the DRP, the Assessing Officer accepted Rs.2.28 crores as revenue expenditure and reported Rs.1.40 crores as capital expenditure. The DRP found Rs.64.26 lakhs of the latter amount to be revenue in nature and confirmed disallowance of Rs.75,24,807/-. The Tribunal confirmed the items accepted by the assessee as capital expenditure and restored the remaining 32 items to the Assessing Officer for verification.
