THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -1 vs. GE CALEDONIAN LTD.

PDF · subscribers
ITA/1370/2018HC DelhiDLHC01071588201830 November 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 decided to dispose of the present appeal in terms of the order passed in ITA No. 661/2018. This decision was based on the understanding that the issue of levy of interest under Section 234B of the Income Tax Act, 1961, was covered by the High Court's own prior judgment in Director of Income Tax (International Taxation) vs. GE Packaged Power Inc. (2015) 373 ITR 65 (Delhi). The Court acknowledged that an appeal against this precedent was pending before the Supreme Court. Therefore, the High Court held that the ruling of the Supreme Court in the pending appeal would equally apply to the present case. The appeal was disposed of with a liberty to the parties to file an application in the present appeal after the Supreme Court's decision if any difficulty arose. No specific finding on the merits of the interest levy was made, as the disposal was based on the pending Supreme Court decision.

What were the facts?

This matter concerns an appeal filed by the Commissioner of Income Tax - International Taxation -1 (the Revenue) against GE Caledonian Ltd. (the assessee). The appeal challenges an order, the specifics of which are not detailed, but it pertains to the assessment year(s) not explicitly stated. The procedural history indicates that the Revenue sought to re-file the appeal after a delay, which was condoned. The parties agreed to dispose of the present appeal in terms of a previous order by the High Court in ITA No. 661/2018, involving similar issues. The core dispute revolves around the levy of interest under Section 234B of the Income Tax Act, 1961.

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) concerning the levy of interest under Section 234B of the Income Tax Act, 1961, is applicable to the present appeal. Assessee's Contention: The assessee, through its counsel, implicitly agrees with the Revenue's position that the present appeal should be disposed of in terms of the order in ITA No. 661/2018, which itself relies on the principle established in Director of Income Tax (International Taxation) vs. GE Packaged Power Inc. (supra). Revenue's Contention: The Revenue, through its counsel, states that the present appeal may be disposed of in terms of the order dated 01.06.2018 passed in ITA No. 661/2018, citing that the issue of levy of interest under Section 234B is covered against them by the judgment in Director of Income Tax (International Taxation) vs. GE Packaged Power Inc. (supra). They further note that an appeal against this ruling is pending before the Supreme Court.

Which sections of the Income-tax Act were involved?

Section 234B,Section 158A,Section 158AA

AI-generated summary — verify with the full judgment below

$~46 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 1370/2018 THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -1 ..... Appellant Through: Mr. Ruchir Bhatia, Adv. versus GE CALEDONIAN LTD. ..... Respondent Through: Mr. Sachin Jolly, Adv. CORAM: HON'BLE MR. JUSTICE SANJIV KHANNA HON'BLE MR. JUSTICE ANUP JAIRAM BHAMBHANI O R D E R % 30.11.2018 CM APPL. 50145/2018 (exemption) Allowed subject to all just exceptions. CM APPL. 50146/2018 (delay in re-filing) Delay in re-filing is not opposed by the respondent-assessee. Accordingly, the application for condonation of delay is allowed. ITA 1370/2018 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. 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, the 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. SANJIV KHANNA, J. ANUP JAIRAM BHAMBHANI, J. NOVEMBER 30, 2018

More judgments on Section 234B

All 10,214 judgments and leading authorities on Section 234B →

Recent GST High Court judgments

Search GST case law →