What did the High Court hold?

The Delhi High Court is considering two questions of law regarding the Tribunal's decision to uphold the deletion of adjustments for royalty and expenses on discarded software. The court has listed the matter for further hearing.

The case involves an appeal by the Principal Commissioner of Income Tax against a decision of the Income Tax Appellate Tribunal. The appeal concerns adjustments related to royalty payments and expenses on discarded software.

What were the issues?

The key issues are whether the Tribunal erred in deleting adjustments related to royalty and expenses incurred on discarded software.

PCIT vs Expeditors International (India)… | Delhi High Court 2023

$~10 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 705/2023

PR. COMMISSIONER OF INCOME TAX-1 ..... Appellant Through: Mr Sanjay Kumar, Sr Standing Counsel with Ms Hemlata Rawat, Standing Counsel.

versus

EXPEDITORS INTERNATIONAL (INDIA) PVT. LTD.

..... Respondent Through: Mr Deepak Chopra with Mr Rohan Khare and Mr Priyam Bhatnagar, Advs.

CORAM:

HON'BLE MR. JUSTICE RAJIV SHAKDHER

HON'BLE MR. JUSTICE GIRISH KATHPALIA

O R D E R %

19.12.2023

[Physical Hearing/Hybrid Hearing (as per request)]

We have heard learned counsel for the parties. The following questions of law arise for consideration by the Court: (a) Whether the Income Tax Appellate Tribunal [in short, “Tribunal”] misdirected itself in law and on facts in upholding the deletion of adjustments directed by the Commissioner of Income Tax (Appeals) [in short, “CIT(A)”] vis-à-vis royalty? (b) Whether the Tribunal has erred in law and on facts in deleting the addition made with regard to expenses amounting to Rs. 1,81,052/- incurred by the respondent/assessee on discarded software? ITA 705/2023

1/2 This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/03/2026 at 12:44:50

List the matter on 23.02.2024. 3. Liberty is given to the counsel for the parties to file additional written submissions on issues that are not common with ITA 698/2023. 4. The additional submissions will not exceed two (2) pages each and will be filed within ten (10) days from today.

RAJIV SHAKDHER, J

GIRISH KATHPALIA, J DECEMBER 19, 2023/pmc

Click here to check corrigendum, if any

ITA 705/2023

2/2 This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/03/2026 at 12:44:50

PR. COMMISSIONER OF INCOME TAX-1 vs. EXPEDITORS INTERNATIONAL (INDIA) PVT. LTD.

What did the High Court hold?

What were the facts?

What were the issues?

Which sections of the Income-tax Act were involved?

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