DIRECTOR OF INCOME TAX vs. LUCENT TECHNOLOGY INT INC

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ITA - 401 / 2010HC Delhi30 April 20101 pages
For Petitioner: SANJEEV SABHARWAL
AI SummaryPartly Allowed

What did the High Court hold?

The High Court of Delhi admitted the appeal and framed the substantial questions of law. The judgment does not record any findings or decisions on the merits of the questions of law. It only indicates that the appeal is admitted for consideration. The operative directions are to admit the appeal and tag it along with ITA No. 756/2009. No issue was expressly left undecided, as no decision was rendered.

What were the facts?

This case involves an appeal filed by the Director of Income Tax (Revenue) against Lucent Technology Int Inc (Assessee). The appeal challenges an order, the specifics of which are not detailed in this excerpt, but it pertains to assessment year(s) not mentioned. The core dispute revolves around the taxability of consideration for software supply as royalty and the levy of interest under Section 234B. The High Court of Delhi has admitted the appeal and framed substantial questions of law. The procedural history indicates that paper books have been dispensed with, and the appeal is to be tagged along with another related appeal, ITA No. 756/2009.

What were the issues?

The Tribunal is to decide two substantial questions of law: 1. Whether any part of the consideration received for the supply of software is taxable as royalty under Section 9(1)(vi) of the Income Tax Act, 1961, or under the relevant provisions of the Double Taxation Avoidance Agreement (DTAA) between India and the USA? 2. Whether interest under Section 234B of the Income Tax Act, 1961, was leviable in the facts and circumstances of the case? The judgment records arguments for neither the Assessee nor the Revenue regarding these questions. It only states that learned counsel for the parties were heard.

Which sections of the Income-tax Act were involved?

Section 9(1)(vi),Section 234B

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF DELHI AT NEW DELHI . ITA 401/2010 DIRECTOR OF INCOME TAX ..... Appellant Through : Mr. Sanjeev Sabharwal, Adv. . versus . LUCENT TECHNOLOGY INT INC ..... Respondent Through : Mr. Mahua Kalra, Adv. . CORAM: HON'BLE MR. JUSTICE BADAR DURREZ AHMED HON'BLE MR. JUSTICE V.K. JAIN . O R D E R 30.04.2010 . CM. APPL. No. 3870/2010 (Exemption) . . Exemption allowed subject to all just exceptions. Application stands disposed of. ITA 401/2010 . We have heard learned counsel for the parties. Admit. The following substantial questions of law arise for the consideration of this Court:- 1. Whether in the facts and circumstances of the case, any part of the consideration for supply of software is taxable as royalty under Section 9 (1) (vi) or under the relevant provisions of the Double Taxation Avoidance Agreement between India and USA? . 2. Whether in the facts and circumstances of the case interest under Section 234 B was leviable? . The filing of paper books is dispensed with. Tag along with ITA No. 756/2009. BADAR DURREZ AHMED, J . . V.K. JAIN, J APRIL 30, 2010/AK . 06.

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