THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -1 vs. BENTLY NEVADA LLC

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ITA/1171/2018HC DelhiDLHC01072113201826 October 2018Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE ANUP JAIRAM BHAMBHANI2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court of Delhi disposed of the appeal. The Court noted that the issue regarding the levy of interest under Section 234B of the Income Tax Act, 1961, was covered against the Revenue by its own prior judgment in 'Director of Income Tax (International Taxation) vs. GE Packaged Power Inc.' (2015) 373 ITR 65 (Delhi). The Revenue acknowledged this and further stated that a Special Leave Petition against the 'GE Packaged Power Inc.' decision was pending before the Supreme Court, and the ruling of the Supreme Court would apply to the present appeal. Consequently, the High Court directed that the appeal be disposed of in terms of the Supreme Court's future ruling. The Court also provided liberty to the parties to file an application in the appeal after the Supreme Court's decision if any difficulty arose. The appeal was treated as disposed of for registry purposes.

What were the facts?

The Commissioner of Income Tax - International Taxation -1 (the Revenue) filed an appeal before the Delhi High Court against Bentley Nevada LLC (the Assessee). The appeal concerned the assessment year(s) not specified in the judgment. The order or action under challenge was the levy of interest under Section 234B of the Income Tax Act, 1961. The High Court was informed that the present appeal could be disposed of in terms of a previous order in ITA No. 661/2018, citing Sections 158A and 158AA of the Income Tax Act, 1961, though these provisions were not strictly applicable. The Revenue acknowledged that the issue of interest under Section 234B was covered against them by the High Court's decision in 'Director of Income Tax (International Taxation) vs. GE Packaged Power Inc.', (2015) 373 ITR 65 (Delhi). A Special Leave Petition against this decision was pending before the Supreme Court.

What were the issues?

1. Whether the High Court's decision in 'Director of Income Tax (International Taxation) vs. GE Packaged Power Inc.' (2015) 373 ITR 65 (Delhi) on the levy of interest under Section 234B of the Income Tax Act, 1961, is applicable to the present appeal. Assessee's Contentions: Not recorded in the judgment. Revenue's Contentions: The Revenue stated that the present appeal could be disposed of in terms of the order dated 01.06.2018 passed in ITA No. 661/2018, The Pr. Commissioner of Income Tax-1 (International Taxation) vs. General Electric Power Systems INC., and that the issue of levy of interest under Section 234B is covered against them by the High Court's judgment in 'Director of Income Tax (International Taxation) vs. GE Packaged Power Inc.' (2015) 373 ITR 65 (Delhi). They also stated that the ruling by the Supreme Court on their pending Special Leave Petition against the 'GE Packaged Power Inc.' decision would equally apply to the present appeal.

Which sections of the Income-tax Act were involved?

Section 234B,Section 158A,Section 158AA

AI-generated summary — verify with the full judgment below

$~30 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 1171/2018 & CM APP No. 44801/2018 THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -1 ..... Appellant Through: Mr.Ruchir Bhatia, Adv. versus BENTLY NEVADA LLC ..... Respondent Through: Mr.Sachit Jolly, Adv. CORAM: HON'BLE MR. JUSTICE SANJIV KHANNA HON'BLE MR. JUSTICE ANUP JAIRAM BHAMBHANI O R D E R % 26.10.2018 CM APP No.44800/2018 Allowed, subject to all just exceptions. The application stands disposed of. ITA 1171/2018 Counsel for the parties state that the present appeal may be disposed of in terms of the order dated 01.06.2018 passed in ITA No. 661/2018, The Pr. Commissioner of Income Tax-1 (International Taxation) vs. General Electric Power Systems INC. It is stated that this would be in consonance with Sections 158A and 158AA of the Income Tax Act, 1961, though these provisions are not strictly applicable. 2. The question raised by the Revenue in these appeals relates to levy of interest under Section 234B of the Income Tax Act, 1961 which issue is covered against them vide the judgment of this Court in ‘Director of Income

Tax (International Taxation) vs. GE Packaged Power Inc.’, (2015) 373 ITR 65 (Delhi). 3. The appeal against the said decision is pending before the Supreme Court as special leave to appeal has been granted. 4. Counsel for the parties state that the ruling by the Supreme Court would equally apply to the present appeal. Recording the above, this appeal is disposed of. 5. In case of any difficulty, it will be open to the parties to file an application in this appeal after the decision of the Supreme Court. 6. The appeal for the purpose of registry would be treated as disposed of. SANJIV KHANNA, J. ANUP JAIRAM BHAMBHANI, J. OCTOBER 26, 2018 neelam

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