INFOSYS LIMITED,BANGALORE V. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-3(1)(1), BANGALORE

MA 7/BANG/2026

AI Insights

Infosys Limited filed a miscellaneous petition under section 254(2) of the Income Tax Act, 1961, seeking rectification of the ITAT's order dated 6.8.2025, which had not addressed the additional grounds of appeal for Assessment Year 2021-22 concerning deductions under section 37 for foreign tax credits. The Tribunal acknowledged the oversight and corrected the omission by applying the findings from the related Assessment Year 2020-21 to 2021-22, thereby remanding the issue back to the AO for further examination in line with previous judicial decisions.

• Duration Of Justice: 1 month(s) 26 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 23-03-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Bangalore
• Assessment Year: 2021-2022
• Appeal Filed On: 27-01-2026
• Other Referred Cases: Reliance Infrastructure Ltd [2016] 76 taxmann.com 257 (Bom), Onmobile Global Ltd v ACIT [IT(TP)A Nos 139 & 2560/Bang/2019 dated 10.8.2022]
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N. BALUSAMY
• Assessee Lawyers: B.R. SUDHENDRA
• Section: 37; 37(1)

Judgement Text

"MANo.7/Bang/2026 Infosys Ltd., Bengaluru IN THE INCOME TAX APPELLATE TRIBUNAL “A’’BENCH: BANGALORE BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER AND SHRI KESHAV DUBEY, JUDICIAL MEMBER MA No.7/Bang/2026 (Arising out of ITA No.1532/Bang/2024 Assessment Year : 2021-22 Infosys Limited Plot 44, Konappana Agrahara Hosur Road Konappana Bengaluru 560 100 Karnataka PAN NO : AAACI4798L Vs. DCIT Circle 3(1)(1) Bengaluru APPELLANT RESPONDENT Appellant by : Shri B.R. Sudhendra, A.R. Respondent by : Shri N. Balusamy, D.R. Date of Hearing : 27.02.2026 Date of Pronouncement : 23.03.2026 O R D E R PER KESHAV DUBEY, JUDICIAL MEMBER: This miscellaneous petition u/s 254(2) of the Income Tax Act, 1961 (in short “The Act”) is filed by the assessee seeking to rectify the order passed by the ITAT in ITA Nos.1531 & 1532/Bang/2024 dated 6.8.2025 on the reasoning that there is a mistake apparent in the order of the ITAT as the Tribunal while passing the order did not adjudicate and allow the additional grounds of appeal filed for AY 2021-22. 2. It is submitted by the ld. A.R. of the Assessee that the additional grounds of appeal regarding deduction under section 37 for foreign tax credit not eligible for relief under section 90/91 of the Act was filed before the ITAT for both AY 2020-21 and AY 2021- Printed from counselvise.com MA No.7/Bang/2026 Infosys Ltd., Bengaluru Page 2 of 4 22. The Tribunal at para 7 to 7.4 of its common order for AY 2020- 21 and AY 2021-22 had adjudicated the additional grounds of appeal for AY 2020-21 and remanded the issue of deduction under section 37 for foreign tax credit not eligible for relief under section 90/91 of the Act to the file of AO for fresh examination and verification. The AO was directed to decide the said claim in the light of the decisions in the case of Reliance Infrastructure Ltd [2016] 76 taxmann.com 257 (Bom), Onmobile Global Ltd v ACIT [IT(TP)A Nos 139 & 2560/Bang/2019 dated 10.8.2022] which were followed in Assessee’s own case for the AY 2014-15 & AY 2015-16. The additional grounds of appeal were accordingly allowed for statistical purposes. However, similar directions were not given for AY 2021-22. 3. We have heard the rival submissions and perused the order of the Tribunal dated 6.8.2025 for AY 2020-21 and AY 2021-22 in ITA Nos 1531 & 1532/Bang/2024. The Para 9 of the ITAT order has extracted the grounds of appeal for AY 2021-22. Further, at para 10 of the Order, it is observed that the grounds of appeal are identical to grounds for AY 2020-21 except for change in figures. Accordingly, the ITAT held that the decision rendered in ITA No 1531/Bang/2024 for AY 2020-21 shall apply mutatis mutandis for AY 2021-22 also. There is no separate discussion on the additional grounds of appeal filed for AY 2021-22. 3.1 We are of the considered opinion that it is quite evident from the above that the additional grounds of appeal filed for AY 2021-22 had not been considered and decided by the Tribunal. The Tribunal had given its findings on the additional grounds of appeal filed for AY 2020-21. The additional grounds of appeal filed for AY 2021-22 is identical to additional grounds of appeal filed for AY 2020-21, except for change in figures. The additional grounds of appeal filed Printed from counselvise.com MA No.7/Bang/2026 Infosys Ltd., Bengaluru Page 3 of 4 for AY 2021-22 is regarding the allowability of deduction under section 37 for foreign tax credit not eligible for relief under section 90/91 of the Act amounting to Rs. 14,86,40,490. Hence, the findings of the Tribunal on additional grounds of appeal filed for AY 2020-21 shall apply mutatis mutandis for AY 2021-22 also. Hence, following para shall be inserted after para 10 and before para 11 of the ITAT order dated 6.8.2025 in ITA Nos. 1531 & 1532/Bang/2024 for AY 2020-21 and AY 2021-22. “Assessee has filed additional grounds of appeal for the claim of deduction under section 37(1) of the Act in respect of foreign taxes paid amounting to Rs. 14,86,40,490 which is not eligible for relief under section 90/91 of the Act. These grounds are identical to additional grounds of appeal filed for AY 2020-21 except for change in figures. Thus, the findings of the Tribunal on additional grounds of appeal filed for AY 2020-21 shall apply mutatis mutandis for AY 2021-22 also. Thus, respectfully following the same, the additional grounds of appeal filed for AY 2021-22 in respect of the claim of deduction under section 37(1) of the Act in respect of foreign taxes paid amounting to Rs. 14,86,40,490 which is not eligible for relief under section 90/91 of the Act, is also remanded to the file of the AO for fresh examination and verification. The AO is directed to decide the said claim in the light of the decisions in the case of Reliance Infrastructure Ltd [2016] 76 taxmann.com 257 (Bom), Onmobile Global Ltd v ACIT [IT(TP)A Nos 139 & 2560/Bang/2019 dated 10.8.2022] which were followed in Assessee’s own case for the AY 2014-15 & AY 2015-16. The additional grounds of appeal accordingly are allowed for statistical purposes.” 4. The Miscellaneous Application is disposed off as per the above directions. Printed from counselvise.com MA No.7/Bang/2026 Infosys Ltd., Bengaluru Page 4 of 4 Order pronounced in the open court on 23rd Mar, 2026 Sd/- (Waseem Ahmed) Accountant Member Sd/- (Keshav Dubey) Judicial Member Bangalore, Dated 23rd Mar, 2026. VG/SPS Copy to: 1. The Applicant 2. The Respondent 3. The CIT 4. The DR, ITAT, Bangalore. 5 Guard file By order Asst. Registrar, ITAT, Bangalore. Printed from counselvise.com "