DIT 1 INTERNATIONAL TAXATION vs. EFUNDS IT SOLUTION INC
What did the High Court hold?
The High Court admitted the appeals and framed substantial questions of law regarding the correctness of the ITAT's computation of PE profits and the formula applied. The court also considered whether the ITAT's order was perverse.
What were the facts?
The appeals concern the computation of profits attributable to a Permanent Establishment (PE) and the formula used by the Income Tax Appellate Tribunal (ITAT). The Revenue is challenging the ITAT's order.
What were the issues?
Whether the ITAT correctly rejected the computation of profit attributed to a PE based on MAP proceedings and if the ITAT's formula for profit attribution is legally sound.
Which sections of the Income-tax Act were involved?
Not specified in the provided text
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF DELHI AT NEW DELHI . . . . . ITA 1217/2011, ITA 1218/2011, ITA 1219/2011 and . ITA 1221/2011 . . . . . DIT 1 INTERNATIONAL TAXATION ..... Appellant . Through Mr. N P Sahni, Adv. . . . versus . . . . . EFUNDS IT SOLUTION INC ..... Respondent . Through None . . . CORAM: . HON'BLE MR. JUSTICE SANJIV KHANNA . HON'BLE MR. JUSTICE R.V.EASWAR . . . O R D E R . 21.11.2011 . . . CM No.20524/2011 in ITA 1217/2011 . CM No.20525/2011 in ITA 1219/2011 . CM No.20526/2011 in ITA 1221/2011 . . . Exemption allowed subject to all just exceptions. . Application is disposed of. . . . ITA 1217/2011 . ITA 1218/2011 . ITA 1219/2011 and . ITA 1221/2011 . . . Heard. . Admit. . The following substantial questions of law are framed : . . . ?(1) Whether the Income Tax Appellate Tribunal has correctly rejected the computation of profit attributed to the Permanent Establishment on the lines of the MAP proceedings? . . . (2) Whether the formula prescribed by Income Tax Appellate Tribunal for computation of profit attributable to a Permanent Establishment is correct and as per law? . . . (3) Whether the order of the Income Tax Appellate Tribunal is perverse?? . . . . . Filing of printed paper book is dispensed with. Parties are however, given liberty to file documents/material which, were filed before the tribunal/authorities within a period of 12 weeks. This period of 12 weeks in the case of respondent will begin from the date of service of notice. . List all these appeals along with ITA No.912/2011 and 1200/2011 for hearing and final disposal in the category of ?After Notice Miscellaneous Matters? on 14th March, 2012. . . . SANJIV KHANNA,J . . . . . . . R.V.EASWAR, J . NOVEMBER 21, 2011 . vld . . . $ 41 .
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