Delhi HC allows engineering fees, citing no material basis for discrediting debit notes

CIT (International Taxation)-1  Vs Cobra Instalaciones Y Servicios S. A (Delhi High Court) Introduction: The Delhi High Court recently addressed an appeal (ITA 578/2023) related to the Assessment Year 2005-06. The appellant/revenue sought to challenge the Income Tax Appellate Tribunal’s (ITAT) decision dated 13.02.2023 concerning the disallowance of engineering fees paid by Cobra Instalaciones Y Servicios S.A. to its head office. Let’s delve into the detailed analysis of the case. Background: The dispute arose when the Assessing Officer disallowed engineering fees of Rs.6,34,83,4...