EY Global Delivery Services India LLP Vs ACIT (ITAT Bangalore)
In a ruling by the Income Tax Appellate Tribunal (ITAT), Bangalore Bench, EY Global Delivery Services India LLP has seen its claim for deduction under Section 10AA of the Income Tax Act, 1961, reinstated for the assessment year 2022-23. The tribunal’s decision overturns earlier orders from the Central Processing Centre (CPC) and the Commissioner of Income Tax (Appeals) [CIT(A)], which had denied the deduction citing a delay in filing the income tax return.
The case involves EY Global Delivery Services India LLP, a limited liability partnership based in Bangalore providing back office support services classified as Information Technology enabled Services (ITeS). The dispute arose following the processing of the firm’s income tax return for the assessment year 2022-23.
According to the details presented before the ITAT, EY Global Delivery Services India LLP filed its initial income tax return on November 28, 2022. This return included a claim for deduction under Section 10AA, a provision in the Income Tax Act that grants tax benefits to units established in Special Economic Zones (SEZs) for profits derived from the export of services. Along with the return, the LLP also submitted the requisite audit report in Form 56F, a mandatory document for claiming the Section 10AA deduction. The electronic record indicated that Form 56F was uploaded on the income tax department’s e-filing portal on October 28, 2022.
