CIT (International Taxation)-2 Vs Perfetti Van Melle ICT B.V.(Panjab Haryana high court)
Punjab & Haryana High Court dismissed an appeal filed by the CIT (International Taxation)-2 against Perfetti Van Melle ICT B.V., ruling that CBDT Circular No. 9/2024, which sets monetary limits for filing appeals, does not apply to cases involving international taxation under Double Taxation Avoidance Agreements (DTAA). The Revenue argued that the appeal fell under an exception outlined in para 3.1 of Circular No. 5/2024, contending that the monetary limit restriction did not apply. However, the Court referenced the Supreme Court’s judgment in Engineering Analysis Centre of Excellence Pvt. Ltd. vs. CIT (2022), which had settled relevant questions regarding the applicability of DTAA. A review petition against this Supreme Court judgment was filed and subsequently dismissed due to delay and lack of merit. The Court agreed with the respondent’s counsel that the present case did not fall within the exceptions listed in the circular, as these exceptions primarily pertain to domestic and international TDS/TCS disputes, rather than broader DTAA-related issues. Finding no unresolved legal questions and with the Supreme Court’s stance already clear, the Court dismissed the appeal, concluding there was no merit in prolonging proceedings. All related applications were also disposed of with the case dismissal.
