Case Law Details
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.
FULL TEXT OF THE JUDGMENT/ORDER OF PUNJAB AND HARYANA HIGH COURT
1. Learned counsel for the Revenue has strenuously argued that the case does not fall within the ambit of Circular bearing No. 9/2024 dated 17.09.2 024 issued by the Central Board of Direct Taxes on the basis of monetary limit, as the same falls in exception as per para 3.1 of Circular No.5/2024 dated 15.03.2024.
2. Learned counsel has taken this Court to clause l(ii) of para 3.1 o Circular No. 5/2024 to submit that the issue involved in the present case to Double Taxation Avoidance the exceptions.
3.Upon a pointed query raised by the Court regarding issue having been finally adjudicated by the Supreme Court in Engineering Analysis Centre of Excellence Private Limited vs. Commissioner of Income Tax and A r., reported in (2022) 3 SCC 321, it has been submitted by learned counsel that the review petition has been filed with regard to the said judgment.
4. Learned counsel appearing for the respondent has passed on the order passed in review petition whereby upon circulations, the review petitions and IAs have been dismissed both on the ground of delay as well as on merits vide order dated 23.0 4.2024.
5. We have considered the submissions.
6. Firstly, as we accept the argument raised by learned counsel for the respondent with regard to the case not falling within exception to clause l(ii) of para 3.1 which is only with respect to litigation arising out of disputes related to TDS/TCS matters in both domestic and international taxation charges, wherein disputes relating to appeals o international taxation charges with the applicability of provisions of Double Taxation Avoidance Agreement would fall. Even otherwise the questions of law raised by the appellant in the present case stand adequately answered by the Apex Court in Engineering Analysis (supra).
7. Review petitions having been already dismissed, we do not find any reason to further keep this case pending for adjudication.
8. Appeal is dismissed accordingly.
9. All pending applications also stand disposed of.
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