BARCLAYS GLOBAL SERVICE CENTRE PRIVATE LIMITED ,PUNE V. ASSISTANT COMMISSIONER OF INCOME TAX, CIR 1(1), PUNE

ITA 694/PUN/2022

AI Insights

The case involves Barclays Global Service Centre Private Limited appealing against the Assessment Order for the Assessment Year 2018-19, which was passed under sections 143(3) and 144C(13) of the Income Tax Act, 1961. The appeal was primarily focused on issues related to Transfer Pricing Adjustments and the credit for Dividend Distribution Tax (DDT). The assessee filed a letter to withdraw the appeal on Transfer Pricing Adjustments following the signing of an APA with the CBDT. The Tribunal also addressed the issue of DDT credit, directing the Assessing Officer to verify and grant the credit if the tax was paid. The issue of penalty was dismissed as it was considered premature at this stage.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 669299 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-06-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: PRAKASH L PATHADE
• Assessee Lawyers: RIDDHI MARU VIRTUAL
• Keywords: Transfer pricing; International transaction; Rectification of order

Judgement Text

" आयकर अपीलीय अिधकरण ”सी” Ɋायपीठ पुणेमŐ। IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “C” :: PUNE BEFORE DR.DIPAK P. RIPOTE, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.694/PUN/2022 िनधाᭅरण वषᭅ / Assessment Year: 2018-19 Barclays Global Service Centre Private Limited, 5 to 12 Floor(part), Building G2 Gera Commerzone SEZ, Survey No.65, Kharadi, Vadgaon Sheri, S.O. Pune City, Pune – 411014. Maharashtra. V s The Assistant Commissioner of Income Tax, Circle-1(1), Pune. PAN: AADCB1173D Appellant/ Assessee Respondent / Revenue Assessee by Shri Riddhi Maru – CA(Virtual) Revenue by Shri Prakash L Pathade – CIT(DR) Date of hearing 24/06/2025 Date of pronouncement 24/06/2025 आदेश/ ORDER PER DR. DIPAK P. RIPOTE, AM: In this case, Assessee has filed an appeal against the Assessment Order dated 15.07.2022 passed u/s.143(3) r.w.s 144C(13) of the Act, 1961 for the A.Y.2018-19, emanating from order of the Dispute Resolution Panel u/s.144C(5) of the Act, dated 21.06.2022. ITA No.694/PUN/2022 [A] 2 2. At the outset, the Assessee filed a letter dated 09.06.2025. The relevant paragraph of the said letter is reproduced here as under : “With respect to the abovementioned APA application, we wish to inform Your Honours that the APA has been signed between the Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Government of India (CBDT) and the Assessee on 6 February 2025. We have attached the copy of the signed agreement as Annexure 1 for your ready reference. Basis the above, we wish to submit that since the abovementioned APA agreement signed between the CBDT and the Assessee, covers international transaction of provision of IT support services and ITeS, the Assessee wishes to Suo-moto withdraw the Ground No. 1 of the grounds of appeal (including any sub-grounds) as the said grounds are now covered under APA, Grounds of appeal other than Ground No. 1 of the grounds of appeal (including any sub-grounds) remains status quo and valid for subject matter of appeal. We have attached a copy of the captioned appeal as Annexure 2 for your ready reference” 2.1 Thus, Assessee intended to withdraw Ground No.1 of the appeal which is related to Transfer Pricing Adjustment. Ld.DR for the Revenue had no objection. Accordingly, we permit to withdraw the Ground No.1 of the Assessee, hence Ground No.1 is dismissed. Ground No.2 : 3. Ld.AR submitted that Assessee had filed rectification application before the Assessing Officer with reference to Ground ITA No.694/PUN/2022 [A] 3 No.2 which is related to “Dividend Distribution Tax(DDT) Credit Not Given”. Ld.AR submitted that the Assessing Officer(AO) has not considered the payment of DDT, though copy of challan was provided. Ld.AR submitted that she has been informed that Assessing Officer has passed a Rectification Order allowing the Credit of Dividend Distribution Tax. In these facts and circumstances of the case, we direct the ld.Assessing Officer to verify the Assessee’s claim of payment of Dividend Distribution Tax and give credit, if paid. Accordingly, Ground No.2 is allowed for statistical purpose. Ground No.3: 4. This Ground is regarding initiation of penalty. This is premature, hence, dismissed. 5. In the result, appeal of the assessee is Partly allowed for statistical purpose. Order pronounced in the open Court on 24 June, 2025. Sd/- Sd/- (VINAY BHAMORE) (Dr.DIPAK P.RIPOTE) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 24 June, 2025/ SGR ITA No.694/PUN/2022 [A] 4 आदेशकᳱᮧितिलिपअᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT(A), concerned. 4. The Pr. CIT, concerned. 5. िवभागीयᮧितिनिध, आयकर अपीलीय अिधकरण, “सी” बᱶच, पुणे / DR, ITAT, “C” Bench, Pune. 6. गाडᭅफ़ाइल / Guard File. आदेशानुसार / BY ORDER, // TRUE COPY // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे/ITAT, Pune. "