PRINCIPAL COMMISSIONER OF INCOME TAX - 8 vs. ST MICROELECTRONICS PVT. LTD.,

PDF · subscribers

ITA/286/2017HC DelhiDLHC01096123201712 May 2017Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE CHANDER SHEKHAR2 pages

AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal filed by the Revenue. The Court found that no substantial question of law arose from the impugned order of the ITAT that required examination. While acknowledging the Revenue's right to raise such issues in an appropriate case, the Court concluded that the present appeal did not meet the threshold for interference. The operative direction was the dismissal of the appeal. No specific issue was left undecided; rather, the appeal itself was dismissed without delving into the merits of the ITAT's decision on the comparables.

What were the facts?

The Principal Commissioner of Income Tax – 8 (the Revenue) filed an appeal under Section 260A of the Income Tax Act, 1961, against an order dated June 22, 2015, passed by the Income Tax Appellate Tribunal (ITAT). The appeal pertains to Assessment Year 2006-07 and involves ST Microelectronics Pvt. Ltd. (the Assessee). The Revenue's appeal was filed with a delay of 23 days, which was condoned by the High Court. The core issue in the appeal concerns the exclusion of two comparable companies by the ITAT for the purpose of determining the arm's length price of international transactions undertaken by the Assessee.

What were the issues?

1. Whether the High Court should entertain the appeal filed by the Revenue under Section 260A of the Income Tax Act, 1961, against the ITAT's order concerning the exclusion of comparables for determining the arm's length price of international transactions, as a substantial question of law arises. Assessee's Contentions: The judgment does not record any specific contentions made by the Assessee. However, the Assessee is the respondent in the appeal before the High Court. Revenue's Contentions: The Revenue contended that the ITAT's order, which involved the exclusion of two comparables for determining the arm's length price of international transactions, gave rise to a substantial question of law that warranted examination by the High Court under Section 260A of the Income Tax Act, 1961.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

$~ * IN THE HIGH COURT OF DELHI AT NEW DELHI 3 +

ITA 286/2017

PRINCIPAL COMMISSIONER OF INCOME TAX – 8..... Appellant Through: Mr. Sanjay Kumar and Mr. Dileep Shivpuri, Advocate

versus

ST MICROELECTRONICS PVT. LTD.

..... Respondent

Through: Mr. Aditya Vohra, Advocate

CORAM: JUSTICE S.MURALIDHAR JUSTICE CHANDER SHEKHAR

O R D E R %

12.05.2017 CM No. 14172/2017 (for delay) 1. For the reasons stated in the application, the delay of 23 days in filing the appeal is condoned. The application is allowed. ITA 286/2017 2. This appeal by the Revenue under Section 260A of the Income Tax Act, 1961 is directed against the order dated 22nd June, 2015 passed by the Income Tax Appellate Tribunal (‘ITAT’) in IT (TP) A No. 1394/B/2014 pertaining to Assessment Year 2006-07.

The question sought to be urged by the Revenue concerns the exclusion of two comparables for the purposes determining the arm's length price of international transactions involving the Respondent/Assessee.

Having heard learned counsel for the Revenue, the Court does not find any substantial question of law arising from the impugned order of the ITAT ITA 286/2017

Page 1 of 2

which requires examination. While reserving the right to raise such issue in an appropriate case, the appeal is dismissed.

S.MURALIDHAR, J

CHANDER SHEKHAR, J MAY 12, 2017/b

ITA 286/2017

Page 2 of 2

Recent GST High Court judgments

Search GST case law →