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TMI Blog2024 (3) TMI 942X X X X Extracts X X X X X X X X Extracts X X X X ..... d for statistical purposes. Foreign Tax Credit - HELD THAT:- HCL Comnet Systems And Services Ltd [ 2023 (11) TMI 1238 - DELHI HIGH COURT] has decided the issue in favour of the assessee as relying on Wipro Ltd. case [ 2015 (10) TMI 826 - KARNATAKA HIGH COURT ] Short credit of TDS - HELD THAT:- We are of the considered view that this issue needs verification and we direct the Assessing Officer to verify the details of TDS and allow credit as per provisions of law. Ground No. 5 is allowed for statistical purposes. - Shri Saktijit Dey, Vice President, And Shri N.K. Billaiya, Accountant Member For the Assessee : Shri Ajay Vohra, Sr. Adv For the Department : Shri Rajesh Kumar, CIT-DR, Shri Manish Kumar Dabas, Sr. DR ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER:- The above captioned two separate appeals by the assessee are preferred against two separate orders dated 28.02.2022 and 25.07.2022 pertaining to A.Ys. 2017-18 and 2018-19 respectively. 2. Since both the appeals were heard together and involve common issues, they are disposed of by this common order for the sake of convenience and brevity. ITA No. 498/DEL/2022 [A.Y. 2017-18] 3. The grievances of the assessee read as under: On the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cepted to be at arm's length by the TPO himself for the immediately preceding year under the same approach, all other things remaining the same; 1.3.4. considering the services as shareholder services without any basis even though the Appellant provided various documentary evidence to show that such which were an integral part of the business 1.4. On the facts and circumstances of the case and in law, the Ld. TPO/ DRP erred in not appreciating the commercial expediency and business needs of the Appellant and completely ignoring all submissions made by the Appellant in this regard. 1.5. On the facts and circumstances of the case and in law, the Ld. TPO/ DRP erred in disregarding the fact that there was no base erosion by payment of such charges as alleged owing to the following: 1.5.1. all due taxes were deducted on payment made to AEs, the benefit of which has not even been provided to the Appellant. 1.5.2. the expense W.r.t Information technology amounting to INR 1,61,54,588 paid to a fellow subsidiary AT Kearney India Private Limited was considered as arm's length in the hands of the Indian entity Corporate tax 2. On the facts and circumstances of the case and in law, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... worldwide. It provides consultancy services in the manufacturing industry to diverse multinational enterprises. 5. A.T. Kearney Limited - India Branch Office is an Indian branch office of A.T. Kearney, UK. A.T. Kearney Group [ATK] operates on a global business model wherein leading practices, data, work products and client solutions are shares globally between all ATK affiliates. Further, ATK s resources are deployed globally based on availability and industry/technical skills to offer more services and take advantage of economies of scale. ATK entity, which sells the project, may rely on consulting staff employed by one or more of its foreign affiliates to form a global team and execute the project. 6. As each of the ATK affiliate provides valuable and unique contributions to the global network, a global profit split model [PSM] was implemented considering the highly integrated nature of ATK s operations. 7. International transactions are as under: (i) Receipt of network fee (ii) Receipt of management consultancy services (iii) Receipt of information technology enables services (iv) Receipt of K-net services 8. During the course of assessment proceedings, bilateral Advance Pricin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he corporate tax issues relating to the claim regarding Foreign Tax Credit [FTC]. 12. The contention of the assessee is that the Assessing Officer has not allowed complete credit of foreign taxes paid by the assessee by completely disregarding the decision of the Hon'ble Karnataka High Court in the case of Wipro Limited 62 Taxmann.com 26. 13. Though the ld. DR vehemently stated that due to divergent views, this quarrel has been referred to the Special Bench of the Tribunal. But we find that the Hon'ble Jurisdiction High Court of Delhi in the case of HCL Comnet Systems And Services Ltd ITA 546/2022 order dated 23.11.2023 has decided the issue in favour of the assessee. The relevant findings of the Hon'ble Jurisdictional High Court read as under: 6. We have perused the lead judgment of the Karnataka High Court in the Wipro Ltd. case. The facts which obtained, therein, are pari materia with the instant appeal. 7. We are in respectful agreement with the view taken by the Karnataka High Court in Wipro Ltd. case. The other two judgments referred to hereinabove, only follow the decision in the Wipro Ltd. case. 8. Therefore, according to us, no substantial question of law arise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment i.e. not claimed in ITR and is a fresh claim and therefore rejecting the admission of same during assessment, relying on Supreme Court judgement in case of Goetze -(India) Ltd. v CIT [2006] 157 Taxmann I; 1.2 On the facts and circumstances of the case and in law, the Ld. AO has erred in not permitting correction of claim regarding FTC amounting to INR 2,36.04.786 made during the assessment proceedings for A Y 2018-19: 1.3 On the facts and circumstances of the case and in law. the Ld. AO has erred in not allowing claim of eligible foreign tax credit paid outside India to the appellant: 1.4 On the facts and circumstances of the case and in law, the Ld. AO has erred in not accepting correction of FTC claim of appellant, basis the fact that revenue's SLP against the ruling of . Hon'ble Karnataka High Court in the case of 'Wipro Limited' relied upon by appellant has been admitted and pending before Supreme Court for disposal. 1.5 On the facts and circumstances of the case and in law, the Ld. AO has erred in not accepting correction of FTC claim of appellant, basis the fact that the appellant's application admitted by the Hon'ble Authority for Advance Rulings ..... X X X X Extracts X X X X X X X X Extracts X X X X
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