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Intertek India Private Limited vs Deputy Commissioner Of Income Tax & Anr on 1 August, 2024

Author: Yashwant Varma

Bench: Yashwant Varma

                             $~78
                             *    IN THE HIGH COURT OF DELHI AT NEW DELHI
                             +         ITA 405/2024
                                       INTERTEK INDIA PRIVATE LIMITED                                                      .....Appellant
                                                                            Through:                 Mr. Nageswar Rao, Mr. Parth
                                                                                                     &   Mr.   Aman     Rewaria,
                                                                                                     Advocates

                                                                            versus

                                       DEPUTY COMMISSIONER OF INCOME TAX
                                       & ANR.                           .....Respondents
                                                   Through: Mr. Anurag Ojha, SSC with
                                                            Mr. Kumar Abhishek & Mr.
                                                            Subham Kumar, Advocates for
                                                            R-1

                                       CORAM:
                                       HON'BLE MR. JUSTICE YASHWANT VARMA
                                       HON'BLE MR. JUSTICE RAVINDER DUDEJA
                                                                            ORDER

% 01.08.2024 CM APPL. 43464/2024 (Exemption) Allowed, subject to all just exceptions.

This application stands disposed of.

1. Having heard Mr. Rao, learned counsel appearing for the appellant, we find that this appeal raises questions which would merit consideration.

2. We take note of the judgment handed down by the Special Bench of the Income Tax Appellate Tribunal in Deputy Commissioner of Income Tax v. Total Oil India P. Ltd. [(2023) 104 ITR (Trib) 1], as also the fact of similar challenge pending in This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 07/08/2024 at 20:42:41 number of writ petitions, including W.P. (C) 13962/2021.

3. We consequently admit this appeal on the following questions of law:-

A. Whether the Dividend Distribution Tax ["DDT"] prescribed under Section 115-O of the Income Tax Act, 1961 ["Act"] is in substance and effect a tax on dividend income of non-resident shareholders and where recipient shareholders are residents of United Kingdom the more beneficial rate of tax of 10 % under Article 11 of Double Taxation Avoidance Agreement ["DTAA"] between India - United Kingdom is applicable?

B. Whether decision of the Special Bench of the Tribunal in the case of Deputy Commissioner of Income Tax vs. Total Oil India Pvt. Ltd. lays down the correct law?

4. W.P. (C) 13962/2021 and connected matters shall stand tagged with the present appeal and the date fixed therein shall stand cancelled.

5. List on 11.09.2024.

YASHWANT VARMA, J.

RAVINDER DUDEJA, J.

AUGUST 1, 2024/RM This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 07/08/2024 at 20:42:41