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The present appeal preferred by the assessee emanates from the Revision order dated 28.01.2025 passed u/s 263 of the Income-tax Act, 1961 by the Principal Commissioner of Income-tax, PCIT, Mumbai - 41 [hereinafter referred to as "PCIT"] pertaining to assessment order passed u/s. 143(3) r.w.s. 144B of the Income-tax Act, 1961 [hereinafter referred to as "Act"] dated 24.09.2022 for the Assessment Year [A.Y.] 2020-21.

Page |2 A.Y. 2020-21 M/S DHL Global Forwarding Freight Shared Services (India) LLP, Mumbai

The Appellant prays that the impugned order be quashed as being bad in law.

2. Factual grounds 2.1. On the facts and circumstances of the case, and in law, the learned PCIT erred in directing the learned AO to verify the facts and thereafter pass fresh assessment order towards disallowance under section 40a(ia) of the Act. The Appellant has disallowed amount under section 40a(ia) of Page |3 A.Y. 2020-21 M/S DHL Global Forwarding Freight Shared Services (India) LLP, Mumbai the Act in the Computation of Income and Tax Return for year under consideration. Further disallowance of the same will lead to double disallowance.

3. The assessee has acquired a Global Service Centre business of DHL Logistics Private Limited with effective from 1st January 2019. It is providing centralized back-office support services to its DPDHL group entities. According to the ITR filed by the assessee, total income disclosed was Rs. 22,93,53,740/-. The assessment u/s 143(3)/144B of the Act was completed on 24.09.2022 by making addition of Rs. 9,24,29,885/- u/s 10AA of the Act.

3.1 On examination of records, it was observed by the ld.PCIT that the assessment order suffered from various infirmities warranting revision within the scope of section 263 of the Act. Accordingly, a show cause notice was issued to the assessee stating that on verification of the records, it was seen from the P & L a/c, computation of Income and Tax, Audit Report that although it debited an expense of Rs. 21,05,95,308/- being "Payment to Contractors", TDS u/s 194C had been deducted only Page |4 A.Y. 2020-21 M/S DHL Global Forwarding Freight Shared Services (India) LLP, Mumbai in respect of payments to the tune of Rs. 16,71,96,720/-.Accordingly, as per the provisions of sec 40a(ia), 30% of the expenses on which tax at source was not deducted was required to be disallowed. However, the A.O while completing the assessment failed to make a disallowance u/s 40(a)(ia), thereby leading to underassessment of income to the tune of Rs.1,30,49,577/- (30% of 4,34,98,588/-).

4.1 In respect of excess MAT Credit Forward to the extent of Rs. 1,11,46,575/-, it was submitted that the assessee had paid taxes under Alternate Minimum Tax ("AMT") provisions and claimed carry forward of AMT amounting to Rs. 2,35,20,860/- under Schedule AMTC in the Page |6 A.Y. 2020-21 M/S DHL Global Forwarding Freight Shared Services (India) LLP, Mumbai Return of Income for the year. In the notice u/s 263 of the Act, incorrect amount of carry forward of AMT credit amounting to Rs. 2,32,20,860/- was mentioned. The tax assessment was completed at a total income of Rs. 32,17,83,625/-,after making proportionate addition of Rs. 9,24,29,885/- u/s.10AA of the Act under normal provisions. As a result of the addition of Rs. 9,24,29,885/- u/s, 10AA of the Act, Deemed Total Income or Adjusted total Income under section 115JC of the Act was computed at Rs.57,35,06,480/-. The Special provisions for payment of tax by certain persons other than a company under section 115JC(1) of the Act provides that "(1) Notwithstanding anything contained in this Act, where the regular income-tax payable for a previous year by a person, other than a company, is less than the alternate minimum tax payable for such previous year, the adjusted total income shall be deemed to be the total income of that person for such previous year and he shall be liable to pay income-tax on such total income at the rate of eighteen and one-half per cent." In its case, the regular income tax payable was less than alternate minimum tax payable for the year and as a result adjusted total income shall be deemed to be the total income and shall be liable to pay income tax on such total income at the rate of 18.5% after addition of Rs.9,24,29,885/- u/s.10AA of the Act. Copy of the comparison of Tax Liability as per Normal Provisions vs Alternate Page |7 A.Y. 2020-21 M/S DHL Global Forwarding Freight Shared Services (India) LLP, Mumbai Minimum Tax under section 115JC of the Act as per Return of Income filed and as per the Tax Computation sheet passed by the Department were filed as also copy of the Tax Computation sheet passed. It was submitted that there was no excess carry forward of MAT to the extent of Rs. 1,11,46,575/- and request was made to drop proceeding initiated under section 263 of the Act.