Agilent Technologies (International) Pvt. Ltd. Vs ACIT/NFAC (ITAT Delhi)
Summary: The Delhi Bench of the Income Tax Appellate Tribunal, comprising Shri Kul Bharat, Judicial Member and Dr. B. R. R. Kumar, Accountant Member, partly allowed the appeal filed by Agilent Technologies (International) Pvt. Ltd. for Assessment Year 2017-18. The appeal arose from the Assessing Officer’s order dated 26.02.2022. The order was pronounced on 22.12.2023. The supplied order is the controlling source for the facts, submissions, findings and operative directions reproduced below.
The assessee, a wholly owned subsidiary structure within the Agilent group, was engaged in providing IT services and IT-enabled services to its associated enterprises. Its ITeS activities included internal financial transaction processing, sales accounting processing and vendor payables management, while its IT segment involved development and testing of software modules and maintenance support services.
One issue concerned rental receipts reflected in Form 26AS. The Assessing Officer observed that Form 26AS reflected rental income of Rs. 6,34,45,795/- under “Rent on other than plant and machinery” and Rs. 2,64,35,750/- under “Rent on hiring of plant and machinery”, whereas the assessee had offered rental income of Rs. 6,14,72,495/- in its return. The Assessing Officer consequently made an addition of Rs. 2,84,09,050/- on the basis that the balance rental receipts had not been offered to tax.
