AT Kearney Ltd. Vs. ACIT

Parties Involved

Facts Summary

The assessee, AT Kearney Ltd., filed twin appeals ITA Nos.6939/Del/2019 and 1694/Del/2022 for assessment years 2015-16 and 2016-17 against the orders of DCIT, International Taxation, New Delhi and CIT(A), Delhi dated 27.06.2019 and 30.05.2022. The appeals involve proceedings under section 143(3) and 154 of the Income-tax Act, 1961. The assessee’s primary grievance is the disallowance of brought-forward losses by the Assessing Officer. The assessee argued that the losses should be allowed as per the returned basis. Additionally, the assessee highlighted that similar transfer pricing issues in preceding years were repetitive and had been deleted by the appellate authority for AY 2008-09. The department’s appeals in preceding assessment years were decided against them, and the transfer pricing adjustments were deleted by the tribunal and upheld by the high court.…

Legal Issues

• 1. Whether the Assessing Officer erred in disallowing the losses on assessed basis rather than allowing losses as per returned basis.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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