{"id":62197,"date":"2026-07-18T15:31:40","date_gmt":"2026-07-18T10:01:40","guid":{"rendered":"https:\/\/itatonline.org\/digest\/genpact-services-llc-v-acit-2025-132-itr-612-delhi-trib\/"},"modified":"2026-07-18T15:31:40","modified_gmt":"2026-07-18T10:01:40","slug":"genpact-services-llc-v-acit-2025-132-itr-612-delhi-trib","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/genpact-services-llc-v-acit-2025-132-itr-612-delhi-trib\/","title":{"rendered":"Genpact Services LLC v. ACIT (2025) 132 ITR 612 (Delhi) (Trib.)"},"content":{"rendered":"<p style=\"margin: 0in;margin-bottom: .0001pt;text-align: justify;line-height: 150%\"><span lang=\"EN-IN\" style=\"font-family: &#039;Verdana&#039;,sans-serif\">The assessee, an independent business unit of GE providing offshore business process management services to its associated enterprise, faced a transfer pricing adjustment of Rs. 1,48,30,634 towards provision of information technology enabled support services, upheld by DRP, with AO also altering the cost allocation methodology from headcount ratio to salary expense ratio, thereby partly disallowing support services cost. On appeal, the Tribunal held that two comparable companies deriving 99% and 100% of their revenue from inter-company transactions were rendered non-comparable due to excessive RPT and were to be excluded; that, following its own decision for the preceding AY, since the TPO had not disturbed the ALP of the transaction, AO\u2019s relook into the basis of allocation of support services cost militated against section 92CA(4), which obligates AO to compute income in conformity with the ALP determined by TPO, and relief was to be granted accordingly; that depreciation of Rs. 73,95,017 on intangible assets being customer contracts and assembled workforce was allowable; and that AO was directed to grant credit for TDS, advance tax and self-assessment tax in accordance with law. (AY. 2017-18)<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 92C: Transfer pricing-Arm\u2019s length price-Avoidance of tax-International transaction-Comparable companies-Related party transactions filter-Companies having 99 per cent. and 100 per cent. related party transactions-To be excluded from final set of comparables&#8211;Assessing Officer obligated to compute income in conformity with arm&#8217;s length price determined by Transfer Pricing Officer-Assessing Officer changing cost allocation methodology from headcount ratio to salary expense ratio, partly disallowing support services cost-Not proper-Depreciation on intangible assets being customer contracts and assembled workforce-Allowable-Deduction of tax at source-Credit for-Assessing Officer directed to verify and grant credit for tax deducted at source, advance tax and self-assessment tax.[S. 32(1)(ii), 92B , 92CA(3), 92 CA(4)]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-62197","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gbb","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62197","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=62197"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62197\/revisions"}],"predecessor-version":[{"id":62198,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62197\/revisions\/62198"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=62197"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=62197"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=62197"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}