Commissioner of Income Tax-4 v. Honda Siel Power Products Ltd.

Delhi High Court · 08 May 2017 · 2017:DHC:8725-DB
S. Muralidhar; Anil Kumar Chawla
ITA 312/2015
2017:DHC:8725-DB
tax appeal_dismissed Significant

AI Summary

The Delhi High Court upheld the ITAT's decision that export commission payments do not constitute royalty or fee for technical services, dismissing the Revenue's appeals under Section 40(a)(i) of the Income Tax Act, 1961.

Full Text
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HIGH COURT OF DELHI
ITA 312/2015
COMMISSIONER OF INCOME TAX-4 Appellant
Through Mr. Raghvendra Singh, Advocate
VERSUS
HONDA SIEL POWER PRODUCTS LTD. Respondent
Through Mr. Ajay Vohra, Sr. Advocate with Ms. Kavita Jha & Ms. Rupali Gupta, Advocates
WITH
ITA 538/2015
PR. COMMISSIONER OF INCOME TAX - 4 Appellant
VERSUS
Through Mr. Ajay Vohra, Sr. Advocate with Ms. Kavita Jha and Ms. Rupali Gupta, Advocates
And
ITA 118/2017
THE PR. COMMISSIONER OF INCOME TAX-4 Appellant
VERSUS
Through Mr. Ajay Vohra, Sr.Advocate with Ms. Kavita Jha and Ms. Rupali Gupta, Advocates
CORAM:
ITANos. 312 «fe538/2015 and 118/2017 Page 1of3
2017:DHC:8725-DB JUSTICE S. MURALIDHAR JUSTICE ANIL KUMAR CHAWLA
ORDER o/o 08.05.2017
CM APPL 4660/2017 (for delavl in ITA No. 118/2017
For the reasons stated therein, the delay of70 days in re-filing the appeal is condoned.
ITA Nos. 312/2015. 538/2015 & 118/2017
JUDGMENT

1. ITA No. 312 of 2015 by the Revenue is directed against the order dated 25th July 2014 passed by the Income Tax Appellate Tribunal ('ITAT') in ITA No. 5713/Del/2011 for the Assessment Year ('AY') 2007-08.

2. ITA No. 538 of2015 by the Revenue is directed against the order dated 12th December 2014 passed by the ITAT in ITA No. 6023/Del/2012 for the AY 2008-09.

3. ITA No. 118 of2017 by the Revenue is directed against the order dated 13th April 2016 passed by the ITAT in ITA No. 551/Del/2014 for the AY 2009-10.

4. By its order dated 14th January 2016, the Court issued notice in ITA Nos. 312 and 538 of2015 confined tothe following question: "Whether the ITAT erred in deleting the addition under Section 40(a) (i) of the Income Tax Act, 1961 holding that the export commission is neither royalty nor fee for technical service?"

5. By its order dated 1st March 2017 the Court issued notice in ITA 118 of 2017 confined to an identical question for AY 2009-2010. ITA Nos. 312 &538/2015 and 118/2017 Page 2of[3]

6. By aseparate order passed today in ITA No. 923 of2015 (Commissioner ofIncome Tax- IV v. Hero Motocorp Lid), an identical question that arose in AY 2006-07 has been answered in the negative i.e. against the Revenue and in favour of the Assessee.

7. Consequently, the Court dechnes to frame any substantial question oflaw on this issue. The appeals are accordingly dismissed.

S.MURALIDHAR, J V' ANIL KUMAR CHAWLA, J MAY 08, 2017 mw ITANos.312&538/2015 and 118/2017 Page 3 of[3]