ITO Vs Tata Teleservices Limited (Delhi High Court)
In the case of ITO Vs Tata Teleservices Limited, the Revenue appealed against the Commissioner of Income Tax (Appeals)-43’s order, which had reversed the Assessing Officer’s (AO) decision regarding the taxability of interest payments made to the China Development Bank (CDB). The AO argued that these payments were not exempt under Article 11(3) of the India-China Double Taxation Avoidance Agreement (DTAA). However, the appellant’s representative noted that a previous ruling from a Coordinate Bench had already determined that CDB qualifies as a financial institution wholly owned by the Government of China, thereby making the interest payments exempt from taxation under the amended provisions of the DTAA. The ITAT observed that the present appeal raised similar issues to those previously addressed and that no new arguments or evidence were provided to differentiate this case from the earlier ruling. As a result, the ITAT found no merit in the Revenue’s appeal and dismissed it, concluding that the earlier decision in favor of Tata Teleservices regarding the tax exemption applied directly to this case. The ruling was pronounced in open court on September 25, 2024.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. This appeal is preferred by the Revenue against the order dated 30.10.2023 of the Commissioner of Income Tax (Appeals)-43, New Delhi (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in Appeal No. NFAC/2013-14/10209080 arising out of the appeal before it against the order dated 07.11.2022 passed u/s 201(1)/201(1A) of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’) by ITO, International Taxation, Ward 3(1)(1), New Delhi (hereinafter referred to as the Ld. AO).
