2022 (4) TMI 1631 - HC - Income Tax

Addition on protective basis on account of difference in Arm s Length Price (ALP) of the international transaction of AMP expenses by applying Bright Line Test - HELD THAT - As appellant states that the ITAT has also erred in relying upon the judgment of this Court in Sony Ericsson Mobile Communication 2015 (3) TMI 580 - DELHI HIGH COURT and the order passed in PCIT vs. Toshiba India Pvt. Ltd 2019 (1) TMI 796 - ITAT DELHI as the Department has not accepted the decision passed in Sony Ericsson and Toshiba India and has preferred appeals against the said decisions. Though the judgements of this Court have been challenged and pending adjudication before the Supreme Court, yet there is no stay of the said judgments. Consequently, in view of the judgments of the Supreme Court in Kunhayammed and Ors. vs. State of Kerala and Anr 2000 (7) TMI 67 - SUPREME COURT (LB) and Shree Chamundi Mopeds Ltd. vs. Church of South India Trust Association CSI Cinod Secretariat, Madras 1992 (4) TMI 183 - SUPREME COURT the present appeal is dismissed being covered by the judgment passed by the learned predecessor Division Bench.

Summary

The High Court of Delhi condoned the delay in filing the appeal and took it on record. The appeal challenged the ITAT's order on addition of Rs. 73,42,99,419 on protective basis for international transaction expenses. The Court dismissed the appeal based on previous judgments despite pending challenges in the Supreme Court.