Case Law Details
PCIT Vs Fiserv India Private Ltd (Delhi High Court)
Introduction: The case of PCIT vs Fiserv India Private Ltd before the Delhi High Court involves an application filed by the appellant seeking condonation of delay and challenging the ITAT’s order. The crux of the matter revolves around the ITAT’s power to review its decision under Section 254 of the Income Tax Act, 1961.
Detailed Analysis: The appellant, Commissioner of Income Tax-07, has sought to challenge the ITAT’s order dated 18 October 2022, raising questions regarding the ITAT’s authority to review its decision under Section 254(2) of the Act. The impugned order was passed on a Miscellaneous Application filed by the respondent-assessee subsequent to the disposal of the appeal.
The ITAT’s original order of 29 September 2020 contained contradictory findings regarding the acceptability of Persistent Systems Pvt. Ltd (PSL) as a comparable entity. It was evident from paras 12 and 21 of the original order that the ITAT’s findings were inconsistent, necessitating a correction of a manifest error apparent on the record.
In light of this inconsistency, the Delhi High Court emphasized the imperative need for the ITAT to recall its order and rectify the error to prevent confusion for the Transfer Pricing Officer (TPO) and the Assessing Officer. The Court noted that the ITAT’s decision to keep the issue of comparability open for its consideration and remit the matter of Sasken Communication Technology Ltd to the TPO’s file did not cause any prejudice to the appellant.
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