What did the High Court hold?

The Delhi High Court has framed questions of law to consider whether the Tribunal erred in upholding the deletion of adjustments for royalty and disallowance of bank guarantee commission and cash management service charges.

The case involves an appeal by the Principal Commissioner of Income Tax against a decision of the Income Tax Appellate Tribunal. The appeal concerns the deletion of adjustments related to royalty payments and disallowance of bank guarantee commission and cash management service charges.

What were the issues?

The key legal issues are whether the Tribunal correctly deleted adjustments concerning royalty payments and disallowances of bank guarantee commission and cash management service charges.

PCIT vs M/S Expeditors International… | Delhi High Court 2023

$~5 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 696/2023

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

versus

M/S 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)] 1. We have heard learned counsel for the parties. The following questions of law arise for consideration by the Court: (a) Whether the 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 amounting to Rs.1,81,052/- concerning disallowance of bank guarantee commission charges and cash management service charges? ITA 696/2023

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 13:32:27

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 698/2023

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 13:32:27

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

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Which sections of the Income-tax Act were involved?

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