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Zycus Infotech Pvt. Ltd. vs. Deputy Commissioner of Income Tax

Case No: ITA No. 3932/Mum/2024
Court: Income Tax Appellate Tribunal, Mumbai
Date: 30 Sep 2024

Parties Involved

appellantZycus Infotech Pvt. Ltd.
respondentDeputy Commissioner of Income Tax

Facts Summary

The assessee, Zycus Infotech Pvt. Ltd., filed its return of income on 10/02/2021 under Section 139(1) of the Income Tax Act, declaring a business loss of Rs.4,90,93,029/-. The case was selected for scrutiny under Section 143(3) due to large international transactions, low profitability, and other factors. The assessee filed objections before the Dispute Resolution Panel (DRP) against the draft assessment order passed by the Assessing Officer (AO). The DRP confirmed the adjustment on account of Corporate Guarantee but deleted the adjustment in respect of Software Development Services. The assessee appealed against the final assessment order passed by the AO, challenging the addition made on account of Corporate Guarantee.

Decision in favour of

Assessee

Legal Issues

  • 1. The assessee challenges the addition made on account of Corporate Guarantee.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

3 precedents cited in this judgement.

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