PR. COMMISSIONER OF INCOME TAX - 4 vs. HONDA SIEL POWER PRODUCTS LTD.

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ITA/538/2015HC DelhiDLHC01283141201508 May 2017Bench: CASES PERTAINING TO SPL.DIVISION BENCHES3 pages
AI SummaryDismissed

What did the High Court hold?

The High Court noted that an identical issue for AY 2006-07 was previously decided against the Revenue. Consequently, the Court declined to frame a substantial question of law on this issue.

What were the facts?

The Revenue appealed ITAT orders concerning assessment years 2007-08, 2008-09, and 2009-10. The appeals questioned the deletion of additions made under Section 40(a)(i) regarding export commission.

What were the issues?

Whether export commission constitutes royalty or fee for technical services, making it disallowable under Section 40(a)(i).

Which sections of the Income-tax Act were involved?

Section 40(a)(i)

AI-generated summary — verify with the full judgment below

$~14 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 312/2015 COMMISSIONER OF INCOME TAX-4 Appellant Through Mr. Raghvendra Singh, Advocate versus HONDA SIEL POWER PRODUCTS LTD. Respondent Through Mr. Ajay Vohra, Sr. Advocate with Ms. Kavita Jha & Ms. Rupali Gupta, Advocates With + ITA 538/2015 PR. COMMISSIONER OF INCOME TAX - 4 Appellant Through Mr. Raghvendra Singh, Advocate versus HONDA SIEL POWER PRODUCTS LTD. Respondent Through Mr. Ajay Vohra, Sr. Advocate with Ms. Kavita Jha and Ms. Rupali Gupta, Advocates And 21 + ITA 118/2017 THE PR. COMMISSIONER OF INCOME TAX-4 Appellant Through Mr. Raghvendra Singh, Advocate versus HONDA SIEL POWER PRODUCTS LTD. Respondent Through Mr. Ajay Vohra, Sr.Advocate with Ms. Kavita Jha and Ms. Rupali Gupta, Advocates CORAM: ITANos. 312 «fe538/2015 and 118/2017 Page 1of3 Digitally Signed By:AMULYA Signature Not Verified

JUSTICE S. MURALIDHAR JUSTICE ANIL KUMAR CHAWLA ORDER o/o 08.05.2017 CM APPL 4660/2017 (for delavl in ITA No. 118/2017 For the reasons stated therein, the delay of70 days in re-filing the appeal is condoned. ITA Nos. 312/2015. 538/2015 & 118/2017 1. ITA No. 312 of 2015 by the Revenue is directed against the order dated 25th July 2014 passed by the Income Tax Appellate Tribunal ('ITAT') in ITA No. 5713/Del/2011 for the Assessment Year ('AY') 2007-08. 2. ITA No. 538 of2015 by the Revenue is directed against the order dated 12th December 2014 passed by the ITAT in ITA No. 6023/Del/2012 for the AY 2008-09. 3. ITA No. 118 of2017 by the Revenue is directed against the order dated 13th April 2016 passed by the ITAT in ITA No. 551/Del/2014 for the AY 2009-10. 4. By its order dated 14th January 2016, the Court issued notice in ITA Nos. 312 and 538 of2015 confined tothe following question: "Whether the ITAT erred in deleting the addition under Section 40(a) (i) of the Income Tax Act, 1961 holding that the export commission is neither royalty nor fee for technical service?" 5. By its order dated 1st March 2017 the Court issued notice in ITA 118 of 2017 confined to an identical question for AY 2009-2010. ITA Nos. 312 &538/2015 and 118/2017 Page 2of3

6.

By aseparate order passed today in ITA No. 923 of 2015 (Commissioner ofIncome Tax- IV v. Hero Motocorp Lid), an identical question that arose in AY 2006-07 has been answered in the negative i.e. against the Revenue and in favour of the Assessee. 7. Consequently, the Court dechnes to frame any substantial question of law on this issue. The appeals are accordingly dismissed. S.MURALIDHAR, J V' ANIL KUMAR CHAWLA, J MAY 08, 2017 mw ITANos.312&538/2015 and 118/2017 Page 3 of3

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