COMMISSIONER OF INCOME TAX INTERNATIONAL TAXATION-3 vs. THE BANK OF TOKYO MITSUBISHI UFJ LTD

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ITA/578/2018HC DelhiDLHC01066539201815 May 2018Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE A. K. CHAWLA1 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that no substantial question of law arises in the present appeal. This conclusion is based on the fact that the issues pressed by the Revenue, namely the taxability of salary paid to expatriate employees and the applicability of Section 115JB of the Income Tax Act, 1961, were already covered by a previous common order of the same High Court for the assessment years 2007-08 and 2008-09, concerning the same assessee. The ratio decidendi is that if the issues raised in an appeal have been conclusively decided by a higher court in a prior common order for the same assessee and assessment years, then no substantial question of law arises for fresh adjudication. Consequently, the appeal was dismissed.

What were the facts?

This case involves an appeal by the Commissioner of Income Tax (International Taxation-3) against an order concerning The Bank of Tokyo Mitsubishi UFJ Ltd. The appeal pertains to assessment years 2007-08 and 2008-09. The issues pressed by the Revenue relate to the taxability of salaries paid to expatriate employees and the applicability of Section 115JB of the Income Tax Act, 1961. The High Court noted that these issues were previously decided by the same court in a common order for the same assessee for the same assessment years.

What were the issues?

1. Whether salary paid to expatriate employees is taxable in India? (Question of law) 2. Whether Section 115JB of the Income Tax Act, 1961 is applicable to the respondent-assessee? (Question of law) The Revenue contended that the issues concerning the taxability of salary to expatriate employees and the applicability of Section 115JB were covered by a previous common order of the High Court for the assessment years 2007-08 and 2008-09 in respect of the same assessee. The judgment does not record any specific arguments from the assessee's side regarding these issues, but implies their position was aligned with the previous favorable order.

Which sections of the Income-tax Act were involved?

Section 115JB

AI-generated summary — verify with the full judgment below

$~64 * IN THE HIGH COURT OF DELHI AT NEW DELHI

+ ITA 578/2018 & CM APPL. 19992-19993/2018

COMMISSIONER OF INCOME TAX INTERNATIONAL TAXATION-3

..... Appellant Through Mr. Asheesh Jain, Sr. Standing Counsel with Mr. Shahrukh Ejaz, Adv.

versus

THE BANK OF TOKYO MITSUBISHI UFJ LTD ..... Respondent Through Mr. Tarun Gulati and Mr. Sparsh Bhargava, Advs.

CORAM: HON'BLE MR. JUSTICE S. RAVINDRA BHAT HON'BLE MR. JUSTICE A. K. CHAWLA

O R D E R %

15.05.2018

The issues pressed by the Revenue with respect to bringing to tax salary paid to expatriate employees and the applicability of Section 115JB of the Income Tax Act, 1961 to the respondent-assessee, are covered by previous common order of this Court for AY 2007-08 and 2008-09 in respect of the same assessee [Principal Commissioner of Income Tax (Central-1) vs. The Bank of Tokyo Mitsubishi UFJ Ltd.].

No substantial question of law arises. The appeal is dismissed along with the pending applications.

S. RAVINDRA BHAT, J

A. K. CHAWLA, J MAY 15, 2018 rc

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