THE PR. COMMISSIQNER OF INCOME TAX-3, vs. FRIGOGLASS INDIA PVT. LTD

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ITA/931/2018HC DelhiDLHC01195867201828 August 2018Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE CHANDER SHEKHAR1 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the issue raised in the present appeal was identical to the issue that had been decided in the Revenue's earlier appeal (ITA No. 123/2017) concerning the same assessee for assessment year 2011-12. In that prior appeal, the Revenue's contentions were dismissed by the High Court vide its order dated March 3, 2017. Consequently, the High Court found that no substantial question of law arose for consideration in the present appeal. The appeal was dismissed in limine, meaning at the outset, without a detailed examination of the merits. No order as to costs was made.

What were the facts?

The Revenue, Principal Commissioner of Income Tax-3, appealed against the Income Tax Appellate Tribunal's (ITAT) order dated February 9, 2018, concerning assessment year 2013-2014. The appeal was filed by the Revenue under Section 260A of the Income Tax Act, 1961, against Frigoglass India Pvt. Ltd. The core issue pertains to the segregation of royalty as a distinct international transaction and its subsequent benchmarking. The Revenue noted that a similar issue for assessment year 2011-2012 in the same assessee's case (ITA No. 123/2017) had been dismissed by the High Court on March 3, 2017. The present appeal was filed on the same grounds.

What were the issues?

1. Whether the Tribunal erred in its decision regarding the segregation of royalty as a separate and independent international transaction and its benchmarking? (Question of law) The Revenue contended that the issue raised in the present appeal is identical to the one decided in their previous appeal (ITA No. 123/2017) for assessment year 2011-12, which was dismissed by the High Court. Therefore, no substantial question of law arises. The Assessee's contentions are not recorded in the judgment. The judgment does not mention any specific arguments presented by the assessee or any authorities, circulars, or precedents they relied upon.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

$~38 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 931/2018

THE PR. COMMISSIQNER OF INCOME TAX-3,..... Appellant

Through: Mr. Ruchir Bhatia, Advocate

versus

FRIGOGLASS INDIA PVT. LTD

..... Respondent

Through:

CORAM: HON'BLE MR. JUSTICE SANJIV KHANNA HON'BLE MR. JUSTICE CHANDER SHEKHAR

O R D E R %

28.08.2018

This appeal by the Revenue under Section 260A of the income Tax Act, 1961 in the case of Frigoglass India Pvt. Ltd. relates to assessment year 2013-2014 and arises from the order of the Income Tax Appellate Tribunal dated 9th February, 2018 in ITA No.7116/Del/2017. The issue raised in the present appeal relates to segregation of royalty as a separate and independent international transaction and its benchmarking. Similar issue was raised by the Revenue in the case of the respondent-assessee in ITA No.123/2017 for the assessment year 2011- 12.The appeal preferred by the Revenue was dismissed vide order dated 3rd March, 2017.

As the issue raised has already been decided, no substantial question of law arises for consideration. Appeal is dismissed in limine, without any order as to costs.

SANJIV KHANNA, J

CHANDER SHEKHAR, J AUGUST 28, 2018/tp/na

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