Deloittee Consulting India Private Limited Vs Assessment Unit (Telangana High Court)
In Deloitte Consulting India Private Limited Vs Assessment Unit, the Telangana High Court examined the validity of a reassessment order dated 16.01.2024 passed under Sections 147 and 144B of the Income-tax Act, 1961 for Assessment Year 2018–19.
The petitioner, engaged in IT consulting services, filed its original return on 30.11.2018 declaring income of ₹720.43 crore. An intimation under Section 143(1) made a disallowance relating to delayed employee provident fund contributions, which was later upheld by the appellate authority and accepted by the petitioner. A scrutiny assessment under Section 143(3) subsequently accepted the returned income without further additions.
Reassessment proceedings were initiated through notice under Section 148A(b) citing two issues: delayed provident fund contributions and CSR expenditure deductions. The petitioner responded, but the objections were rejected, and reassessment was initiated. During the pendency of reassessment, the petitioner entered into a unilateral Advance Pricing Agreement (APA) with the CBDT on 15.02.2023, covering the relevant year. In compliance, it filed a modified return under Section 92CD on 28.03.2023 and an Annual Compliance Report (ACR) on 31.03.2023.
Despite submissions and documents provided by the petitioner, the Assessing Officer passed the reassessment order making three key findings: (i) acceptance of CSR deduction claim, (ii) addition of ₹7.89 crore relating to provident fund contributions (already disallowed earlier and accepted by the petitioner), and (iii) addition of ₹106.47 crore as adjustment based on alleged misinterpretation of the APA.
