2024 (8) TMI 1226

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....on of Rs. 88,58,662/- made by the Ld. ACIT while framing assessment on the premise that some of the invoices were in the name of associate company of USA and some invoices were bearing the date of next Financial Year without appreciating the fact on record." 3. Brief facts of the case are that assessee company had filed its ITR for AY 2015-16 on 28.11.2015 declaring an income of Rs. 68,36,090/-. The case was selected for scrutiny through CASS under the reason 'Depreciation claimed at higher rates/higher addition depreciation claimed'. During the course of assessment proceedings, assessee was asked to give the details and evidence of procurement of assets during the year on which depreciation has been claimed. Assessee furnished the det....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....;Software Analysis and Testing Modules' services from Arcserve Software India It is also seen that during A.Y. 2015-16 appellant signed a business transfer agreement for purchase of running business of 'CA India Technologies Pvt Ltd.' on slump sale basis. Appellant has stated that agreement dated 26.02.2015 provided the details of employees alongwith assets to be transferred to Arcserve India on 01.03.2015, but due to technical reason the record date of acquisition was extended to 31.05.2015 Therefore, it is apparent that appellant had no employee during the F Y 2014-15 as all the employees were acquired from M/s CA India Technologies Pvt. Ltd. Further it is seen that ownership of computers in the name of Arcserve USA has been t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ated on august 1, 2014. The appellant company is 100% subsidiary of 'Archserve UK Holding Limited'. The appellant, being in the setup phase, managed procurements through Arcserve USA, a subsidiary of its parent company, Arcserve UK Holding Limited. Assessment Observations: The AO raised issues with asset bills not being in the company's name, dates beyond the fiscal year, and lack of employee expense claims to question asset usage. Appellant's Argument: * Asset Ownership and Procurement: Assets were procured through Arcserve USA due to the company's initial setup phase. Ownership of assets invoiced to Arcserve USA was transferred to the appellant via inter-office memos. * Transfer Agreement (BTA): Assets and empl....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he company's initial setup phase. Ownership of assets invoiced to Arcserve USA was transferred to the assessee via inter- office memos. As regards the incorrect invoice, the same was rectified after the fiscal year end but the assets were in use and payments were made during the current assessment year. Assessee stated that there was a business transfer agreement for purchase of running business of 'CA India Technologies Pvt. Ltd.' which was to take place from 26.02.2015 but due to some technical reason the record date of acquisition was extended to 31.05.2015. Furthermore, as regards the objection that no employee cost is there, assessee's submission in this regard is that operations commenced with directors and assistance from Arcserve US....