The Income Tax Appellate Tribunal (ITAT), Delhi Bench while granting partial relief to the SBI Business Process Management Services, directed AO to verify the claim of TDS credit.
The assessee, SBI Capital Business Process Management Services Private Limited which was a Joint Venture in which GE Consumer Mauritius Investment Ltd II held 60% and SBI held 40%) now merged with SBI Cards and Payment Services Limited was engaged in providing Income Tax enabled services to banks who issued credit cards. It was carrying out back-end activities of card operations, i.e., transaction processing on cards, billings, updating of collections, statements of account, resolving card-member queries, etc. The assessee not being a captive service provider, rendering the aforementioned services to various credit card companies in India, and the entire revenue in the present financial year (of Rs. 183.11 crores) is earned from unrelated parties. In order to provide these services, the assessee had obtained software licenses, data server ‘” management services, CIS training from its Associated Enterprises located in Australia and the USA. During the relevant financial year, the assessee had entered into various international transactions with its Associated Enterprises.
The assessee raised the issue in respect of short grant of prepaid taxes and erroneous levy of interest.
The assessee submitted that the Assessing Officer erred in not granting the TDS credit to the extent of Rs. 4,40,63,648/- as claimed by the assessee in the revised return of income. The assessee submitted that a direction may be given to the Assessing Officer to grant credit for the same after verification.
The Coram of R.K.Panda and Suchitra Kamble held that that the TDS credit to the extent of Rs. 4,40,63,648/- as claimed by the assessee in revised return of income was not looked into by the Assessing Officer.
Therefore, the ITAT remand back the issue to the file of the Assessing Officer for proper verification of the claim of TDS credit and grant the same as per the provisions of law.
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