PERNOD RICARD INDIA PRIVATE LIMITED vs. COMMISSIONER OF INCOME TAX

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ITA - 24 / 2025HC Delhi06 February 20252 pages
For Petitioner: DEEPAK CHOPRA AZB & PARTNERS
AI SummaryPartly Allowed

What did the High Court hold?

The Delhi High Court admitted the appeal on substantial questions of law regarding the applicability of the India-Mauritius DTAA rates versus the domestic tax rate under Section 115-O of the Income Tax Act for dividend distribution tax.

What were the facts?

The appellant, Pernod Ricard India Private Limited, paid dividends to its non-resident shareholder, Peri Mauritius. The dispute concerns the applicable income-tax rate on these dividends for Assessment Year 2013-14.

What were the issues?

The key issue is whether the lower tax rate under the India-Mauritius DTAA (5%) or the higher domestic rate (15%) under Section 115-O applies to dividends paid to a non-resident shareholder.

Which sections of the Income-tax Act were involved?

Section 90(2),Section 115-O

AI-generated summary — verify with the full judgment below

$~37 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 24/2025

PERNOD RICARD INDIA PRIVATE LIMITED .....Appellant Through: Mr. Anmol Anand and Ms. Priya Tandon, Advocates

versus

COMMISSIONER OF INCOME TAX

.....Respondent Through: Mr. Anurag Ojha, SSC with Ms. Hemlata Rawat and Mr. V.K. Saksena, JSCs

CORAM:

HON'BLE THE CHIEF JUSTICE

HON'BLE MR. JUSTICE TUSHAR RAO GEDELA

O R D E R %

06.02.2025 CM APPL. 7028/2025 1. Exemption allowed subject to all just exceptions. 2. The application stands disposed of. ITA 24/2025 3. Admit on the following substantial questions of law:- A. Whether in terms of section 90(2) of the Act, the applicable income-tax rate on dividends paid by the Appellant to its non-resident shareholder i.e., Peri Mauritius would be 5% (inclusive of surcharge and cess) as per Article 10(2)(a) of the Double Taxation Avoidance Agreement between India and Mauritius instead of 15% (plus surcharge and cess) as provided for in section 115-O of the Act for This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/03/2026 at 12:04:21

Assessment Year 2013-14?

B. Without prejudice, whether the Tribunal erred in not appreciating that since in view of Article 23(4)(b) of the Double Taxation Avoidance Agreement between India and Mauritius, levy of dividend distribution tax was specifically covered within Article 3(1)(d) of the Double Taxation Avoidance Agreement between India and Mauritius, therefore, the lower rate of tax i.e., 5% (inclusive of surcharge and cess) as provided for under Article 10(2) of the Double Taxation Avoidance Agreement between India and Mauritius should apply instead of 15% (exclusive of surcharge and cess) as provided under section 115-O of the Act? 4. Issue notice. On behalf of the respondent Mr. Anurag Ojha, learned SSC accepts notice. 5. List on 05.05.2025. 6. Matter to be tagged with ITA 405/2024.

DEVENDRA KUMAR UPADHYAYA, CJ

TUSHAR RAO GEDELA, J FEBRUARY 6, 2025 Aj This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/03/2026 at 12:04:21

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