Alleged liability of Genpact India under Sections 115-QA and 115-QB of the Income Tax Act, 1961

Last updated: 11 September 2021

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This case before the Income Tax Appellate Tribunal (ITAT) Delhi concerned Genpact India's tax liability under Sections 115-QA and 115-QB of the Income Tax Act, 1961, for the assessment year 2014-15. The Tribunal dismissed the Revenue's appeal (ITA No. 379/DEL/2018) and rendered the assessee's appeal (ITA No. 472/DEL/2018) non-existent. The ruling addressed issues including the taxability of interest on employee loans and eligibility for deductions under Sections 10A and 10AA.

Court :
ITAT Delhi

Brief :
The above cross appeals by the assessee and revenue are preferred against the order of the Commissioner of Income Tax [Appeals] - 35, New Delhi dated 25.10.2017 pertaining to Assessment Year 2014-15.

Citation :
ITA No. 379/DEL/2018 [A.Y 2014-15]

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘C’ BENCH,
NEW DELHI (THROUGH VIDEO CONFERENCING]
BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER, AND
SHRI KULDIP SINGH, JUDICIAL MEMBER
ITA No. 379/DEL/2018 [A.Y 2014-15]

The Dy. C.I.T
Circle 10(1)

Vs.

Genpact India, Delhi Information

Technologies Park, Shastri Park
New Delhi

PAN : AAACG 9163 H

Date of Hearing : 01.09.2021
Date of Pronouncement : 01.09.2021
Assessee by : Shri Sachit Jolly, Adv
Revenue by : Ms Sunita Singh, CIT- DR

ORDER

At the very outset, let us understand the clear facts of the case which would be clear from the following order of the Hon'ble High Court of Delhi in WPC 686/2017 and CM No 29390/2019. The most relevant part of the said judgment.

2. At the outset, it requires to be noticed that the impugned order of assessment was passed under Section 143 (3) of the Act for the Assessment Year („AY‟) 2014-15. The said impugned assessment order deals with certain other issues, apart from the issue concerning the demand under Section 115 QA of the Act. As regards the other issues, the Assessee preferred a statutory appeal under Section 246-A of the Act before the Commissioner of Income Tax (Appeals) [„CIT (A)‟].

3. Whether on the facts and circumstances of the case & in law, the Ld. CIT(A) erred in treating income of Rs.23,04,032/- from interest on employee loans as eligible for deduction u/s 10A & 10AA of the I.T. Act 1961.

4.In the result, both, the appeal filed by the Revenue in ITA No. 379/DEL/2018 is dismissed and the appeal of the assessee in ITA No. 472/DEL/2018 becomes non est.

5. The order is pronounced in the open court on 01.09.2021 in the presence of both the rival representatives.

Please find attached the enclosed file for the full judgement

FAQ :

The case primarily concerned Genpact India's alleged liability under Sections 115-QA and 115-QB of the Income Tax Act, 1961.

The assessment year under review was 2014-15.

The Income Tax Appellate Tribunal dismissed the appeal filed by the Revenue (ITA No. 379/DEL/2018).

The assessee's appeal (ITA No. 472/DEL/2018) was deemed non-existent by the Tribunal.

The case involved whether income of Rs. 23,04,032/- from interest on employee loans was eligible for deduction under Sections 10A and 10AA of the Income Tax Act.