CANON INDIA PRIVATE LIMITED vs. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 3(1)

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ITA/523/2013HC DelhiDLHC01142107201322 April 2015Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE R.K.GAUBA2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court of Delhi, in light of its own Division Bench decision in Sony Ericsson Mobile Communications India Pvt. Ltd. V. Commissioner of Income Tax (ITA No. 16/2014 decided on 16th March, 2015), found that the specific issue concerning distributor expenses was covered in favour of the assessee. The question of law was therefore answered in favour of the assessee. Consequently, the matter was remitted back to the ITAT for further consideration. The appeals were allowed in these terms, with parties directed to appear before the ITAT on 10.07.2015. No specific amount in dispute was mentioned.

What were the facts?

The assessee, Canon India Private Limited, has filed two appeals (ITA 520/2013 and ITA 523/2013) challenging a common order of the Income Tax Appellate Tribunal (ITAT) dated 03.05.2013. The assessee contends that the ITAT's treatment of its distributor expenses was erroneous. The ITAT had based its decision on a Special Bench ruling in LG Electronics India Pvt. Ltd. V. ACIT. The appeals were filed before the High Court of Delhi.

What were the issues?

1. Whether the Income Tax Appellate Tribunal (ITAT) erred in its treatment of the assessee's distributor expenses, relying on its Special Bench ruling in LG Electronics India Pvt. Ltd. V. ACIT (ITA No. 5140/DEL/2011)? (Question of law) Assessee's Contention: The assessee argued that the ITAT's treatment of distributor expenses was erroneous. The judgment does not record specific arguments made by the assessee beyond this general statement. Revenue's Contention: The judgment does not record any specific contentions made by the revenue.

AI-generated summary — verify with the full judgment below

$-40&41 * IN THE HIGH COURT OF DELHI AT NEW DELHI • ITA 520/2013 • ITA 523/2013 II CANON INDIA PRIVATE LIMITED .....Ajpellant Through Mr. Mukesh Butani, Mr. Vishäl Kaira and Mr. Vrinda Tuishan, Advs!. versus DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 3(1:) .....Respondent Through Mr. N P Sahni, Sr. standing counsel with Mr. Nitin Gulati, Adv. CORAM: HON'BLE MR. JUSTICE S. RAVINDRA BHAT HON'BLE MR. JUSTICE R.K.GAUBA ORDER 22.04.2015 In these two appeals, the common order of the ITAT dated 03.05.2013 • is impugned by the assessee, who urges that the treatment of its distributor expenses by the ITAT was erroneous. The ITAT had relied upon its special bench ruling in LG Electronics India Pvt. Ltd. V. ACIT (ITA No. 5140/DEL/201 1 reported in (2013) 152 TTJ (Del)(SB)273). In the light of the decision of the Division Bench of this Court in Sony Ericsson Mobile Communications India Pvt. Ltd. V. commissioner of Income Tax (I±A No. 16/2014 decided on 16th March, 2015), the specific issue stands covered in favour of the assessee. The question of law accordingly is answered in Digitally Signed By:AMULYA Signature Not Verified

favour of the assessee. The matter is consequently remitted to the ITAT for consideration. Parties shall appear before the ITAT on 10.07.2015. The appeals are allowed in the above terms. CR.K. UBA, J BRAT, J APRIL 22, 2015 VU

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