Sasken Technologies: ITAT Bengaluru Order Reduces Contingent Liability by ₹5.08 Cr
Sasken Technologies Ltd has received an order from the ITAT Bengaluru concerning tax litigation for Assessment Years 2017-18 and 2020-21. The ITAT ruled that Tax Deducted at Source (TDS) was not applicable on payments made by overseas branches and deleted disallowances under Sections 14A and 80G. However, a disallowance of ₹7 lakh for a payment to a UK resident was sustained. This favorable ruling is expected to reduce the company's contingent liability by approximately ₹4.50 crore for AY 2017-18 and ₹0.58 crore for AY 2020-21, totaling ₹5.08 crore. The company anticipates receiving a refund of these amounts from the Income-tax Department.
Key Highlights
- ITAT Bengaluru order received for tax appeals ITA Nos. 2057 & 2058/Bang/2025.
- No TDS applicable on overseas branch payments; disallowances under Sec 14A & 80G deleted.
- Contingent liability reduced by ₹5.08 crore across two assessment years.
- Company expects refund from Income-tax Department.
- A ₹7 lakh disallowance for payment to a UK resident was sustained.
Price Impact
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