MANPOWERGROUP SERVICES INDIA PRIVATE LIMITED,DELHI V. ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 2, DELHI, JHANDEWALAN EXTENSION, NEW DELHI

MA 445/DEL/2025

AI Insights

The case involves Manpower Services India Pvt Ltd, which filed a Miscellaneous Application (MA) under section 254(2) of the Income Tax Act, 1961, seeking rectification of the Tribunal's earlier order dated 25.09.2025. The assessee pointed out that the Tribunal had inadvertently not addressed the key issue of recharacterization of their business, which was crucial to their appeal. Instead, the Tribunal had only considered the issue of comparables, which was a secondary argument. The assessee argued that this oversight constituted a mistake apparent from the record, warranting rectification under section 254(2) of the Act. The Departmental Representative did not object to this rectification.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 836203 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 23 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 11-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: I
• Assessment Year: 2020-2021
• Appeal Filed On: 19-11-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DHARM VEER SINGH
• Assessee Lawyers: AJIT JAIN; THROUGH VC
• Keywords: Set aside

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘I’ BENCH, NEW DELHI BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT, AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER MA No. 445/DEL/2025 (A/o ITA No. 3585/DEL/2024 [A.Y. 2020-21]) Manpower Services India Pvt Ltd Vs. The A.C.I.T Suite No. A, IA, First Floor Central Circle – 2 Indra Place, Gobind Mansion New Delhi H Block, Connaught Circus Connaught Place, New Delhi PAN – AABCM 6914 F (Applicant) (Respondent) Assessee By : Shri Ajit Jain, AR [Through VC] Department By : Shri Dharm Veer Singh, CIT-DR Shri Ajay Kumar Arora, Sr. DR Date of Hearing : 19.12.2025 Date of Pronouncement : 11.02.2026 ORDER PER NAVEEN CHANDRA, ACCOUNTANT MEMBER:- With this order we shall dispose of the Miscellaneous Application filed by the assessee u/s 254(2) of the Income tax Act, 1961 [for short, 'the Act'] for rectifying the mistakes apparent in the order of this Bench of the Tribunal dated 25.09.2025 for the above captioned A.Y. Printed from counselvise.com MA No. 445/DEL/2025 [A.Y. 2020-21] Manpower Group Service Vs. ACIT Page 2 of 4 2. In this MA, the assessee has pointed out that the Hon'ble ITAT inadvertently did not adjudicate on the key issue of recharacterization (Ground number 5.1) and only adjudicated on the issue of comparables (Ground number 5.4 & 5.5) which was a without prejudice argument raised by the Appellant. It is submitted that the issue of recharacterization raised vide ground 5.1 “misconstruing the business profile of the Assessee engaged in providing IT and ITeS services and thereby comparing the services provided by the Assessee to that of a knowledge process outsourcing service provider on the basis of salary, educational qualification, experience and job role description of the employees of the Assessee” was not adjudicated upon. The ld. counsel for the assessee submitted that non-adjudication of a ground of appeal is a mistake apparent from record rectifiable u/s 254(2) of the Act and prayed for rectification of the order. 3. The ld. DR raised no serious objection. 4. We have heard the rival submissions and have perused the relevant material on record. Considering the contents of the application, we are of the considered view that the ground 5.1 has not been adjudicated Printed from counselvise.com MA No. 445/DEL/2025 [A.Y. 2020-21] Manpower Group Service Vs. ACIT Page 3 of 4 upon and therefore an inadvertent mistake apparent on record has crept in the Tribunal order.We have already set aside the issue of comparables to the file of the AO. We, therefore, rectify the aforesaid order by directing the AO to examine the issue of recharacterization of the assessee and then decide whether the assessee falls within the scope of KPO considering the documentary evidence furnished by the assessee, as well. 5. In the result, the appeal of the assessee in MA No. 445/DEL/2025 is allowed. The order is pronounced in the open court on 11.02.2026. -Sd/- -Sd/- [MAHAVIR SINGH] [NAVEEN CHANDRA] VICE PRESIDENT ACCOUNTANT MEMBER Dated: 11th February, 2026. VL/ Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) Asst. Registrar, 5. DR ITAT, New Delhi Printed from counselvise.com "