THE .. COMMISSIONER OF INCOME TAX INTERNATIONAL TAXATION -2 vs. MASTERCARD INTERNATIONAL INC.

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ITA/649/2018HC DelhiDLHC01112700201828 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 Delhi High Court held that the question regarding interest charged under Section 234B of the Income Tax Act, 1961, was no longer a substantial question of law. The Court noted that this issue had already been decided against the Revenue in the case of Director of Income Tax (International Taxation) vs. GE Packaged Power Inc. (2015) 373 ITR 65 Delhi. Furthermore, the Court observed that the same issue had been decided in favour of the assessee, Mastercard International Inc., for a different assessment year. Consequently, as no substantial question of law arose, the appeal filed by the Revenue was dismissed.

What were the facts?

The Revenue, represented by the Commissioner of Income Tax International Taxation -2, filed an appeal under Section 260A of the Income Tax Act, 1961, against an order concerning interest charged under Section 234B of the Act. The appeal was filed against Mastercard International Inc. The judgment indicates that the issue of interest charged under Section 234B is no longer a matter of dispute and has been decided against the Revenue in a previous case. It also notes that the same issue was previously decided in favour of the assessee for a different assessment year.

What were the issues?

1. Whether the Tribunal had to decide on the interest charged under Section 234B of the Income Tax Act, 1961, and if so, what was the outcome. Assessee's Contentions: The judgment does not record any specific contentions made by the assessee. However, the fact that the issue was decided in favour of the assessee for another assessment year suggests their stance. Revenue's Contentions: The Revenue's appeal itself indicates their disagreement with the decision regarding the interest charged under Section 234B. They likely argued for the levy of such interest. The judgment mentions that the issue has been decided against the Revenue in Director of Income Tax (International Taxation) vs. GE Packaged Power Inc. (2015) 373 ITR 65 Delhi, implying this precedent was considered.

Which sections of the Income-tax Act were involved?

Section 260A,Section 234B

AI-generated summary — verify with the full judgment below

$~38 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 649/2018 THE COMMISSIONER OF INCOME TAX INTERNATIONAL TAXATION -2

..... Appellant Through Mr.Ruchir Bhatia, Sr.Standing Counsel for the Revenue.

versus

MASTERCARD INTERNATIONAL INC. ..... Respondent Through Mr.Salil Kapoor and Ms.Ananya Kapoor, Advocates.

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

O R D E R %

28.05.2018

The Revenue’s appeal under Section 260A of the Income Tax Act, 1961 is with respect to the interest charged under Section 234B of the Act. This question is no longer moot and has been decided against the Revenue in Director of Income Tax (International Taxation) vs. GE Packaged Power Inc. (2015) 373 ITR 65 Delhi The issue was also decided in favour of the same assessee for another assessment year. No substantial question of law arises. Appeal is dismissed.

S. RAVINDRA BHAT, J

A. K. CHAWLA, J MAY 28, 2018 ndn

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