Fiserv India Private Limited Vs ACIT (ITAT Delhi)
In a recent ruling, the Income Tax Appellate Tribunal (ITAT) Delhi has restored the appeal of Fiserv India Private Limited, challenging an order from the Commissioner of Income Tax (Appeals) [CIT(A)], Delhi-44. The appeal concerns the assessment year 2016-17 and follows an earlier assessment order from February 6, 2020.
Case Background
Fiserv India Pvt Ltd, a company engaged in software development and related services, disputed an assessment order by the Assistant Commissioner of Income Tax (ACIT), Circle 9(1), New Delhi. The order had computed the total income of the company at Rs. 73,79,04,860, against the declared income of Rs. 73,19,78,280. Additional charges included interest under various sections of the Income Tax Act and initiation of penalty proceedings under section 271(1)(c).
A significant part of the dispute involved international transactions and the determination of arm’s length prices. The Transfer Pricing Officer (TPO) had identified a discrepancy of Rs. 32,00,470 in the transactions with Fiserv Global Services Inc. This discrepancy led to an addition to the taxable income and disallowance of certain expenses.
Dispute Details
The primary contention before the CIT(A) was the fairness of the assessment and the handling of adjournment requests. Fiserv India had requested adjournments for several hearings due to the need to gather additional documentation. Despite these requests, the CIT(A) dismissed the appeal, citing non-appearance and lack of response from the appellant.
