What did the High Court hold?

The High Court held that the duty drawback amounts had not accrued and become payable to the assessee. Consequently, these amounts could not be included in the assessee's taxable income for the relevant assessment years.

The Revenue appealed against an ITAT order concerning the inclusion of duty drawback amounts in the assessee's taxable income for AYs 1995-96 and 1996-97. The core issue was whether these duty drawback amounts had accrued and become payable to the assessee.

What were the issues?

Whether duty drawback amounts, under the circumstances of the case, had accrued and become payable to the assessee and thus includible in taxable income.

CIT vs Maruti Suzuki India Ltd | Delhi High Court 2017

ITA Nos.1027 & 1028/2011

Page 1 of 3

$~ * IN THE HIGH COURT OF DELHI AT NEW DELHI +

ITA No. 1027/2011 Reserved on: 11th November 2017

Decided on: 7th December, 2017

COMMISSIONER OF INCOME TAX, DELHI ....Appellant Through: Mr. Mr. Rahul Chaudhary and Mr. Sanjay Kumar, Advocates.

versus

MARUTI SUZUKI INDIA LTD.

..... Respondent Through : Mr. S. Ganesh, Senior Advocate with Ms. Kavita Jha, Mr. S. Sukumaran, Mr. Anand Sukumar, Mr. Bhuwan Dhoopar, Ms. Roopali Gupta and Mr. Bhupesh Pathak, Advocates.

AND

ITA No. 1028/2011

COMMISSIONER OF INCOME TAX, DELHI ...Appellant Through: Mr. Mr. Rahul Chaudhary and Mr. Sanjay Kumar, Advocates.

versus

MARUTI SUZUKI INDIA LTD.

..... Respondent Through : Mr. S. Ganesh, Senior Advocate with Ms. Kavita Jha, Mr. S. Sukumaran,

ITA Nos.1027 & 1028/2011

Page 2 of 3

Mr. Anand Sukumar, Mr. Bhuwan Dhoopar, Ms. Roopali Gupta and Mr. Bhupesh Pathak, Advocates.

CORAM: JUSTICE S. MURALIDHAR JUSTICE PRATHIBA M. SINGH

JUDGMENT %

07.12.2017 Dr. S. Muralidhar, J. 1. These are appeals by the Revenue against the impugned order dated 29th October 2010 passed by the ITAT in ITA Nos. 4444/Del/2007 and 662/Del/2008 for the Assessment Years (AYs) 1995-96 and 1996-97.

On 1st September 2011, the following question of law was framed for consideration in ITA No. 1027 of 2011: “Whether the Tribunal is right in holding that Rs. 43,33,72,336/- on account of duty drawback had not accrued and become payable to the assessee and cannot be included in the taxable income of the assessee for the assessment year 1995-96?”

On 1st September 2011, the following question of law was framed for consideration in ITA No. 1028 of 2011:

“Whether the Tribunal is right in holding that Rs. 24,10,01,489/- on account of duty drawback had not accrued and become payable to the assessee and cannot be included in the taxable income of the assessee for the assessment year 1996-97?”

In view of the decision of this Court today in ITA No. 250 of 2005, the above questions are answered in the affirmative, i.e. in favour of the Assessee and against the Revenue.

ITA Nos.1027 & 1028/2011

Page 3 of 3

The appeals are dismissed.

S. MURALIDHAR, J.

PRATHIBA M. SINGH, J. DECEMBER 07, 2017 Rm

CIT vs. MARUTI SUZUKI INDIA LTD

What did the High Court hold?

What were the facts?

What were the issues?

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