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Delhi High Court - Orders

The Commissioner Of Income Tax ... vs Ernst And Young U.S. Llp on 30 October, 2025

Author: V. Kameswar Rao

Bench: V. Kameswar Rao

                          $~95
                          *    IN THE HIGH COURT OF DELHI AT NEW DELHI
                          +         ITA 423/2025
                                    THE COMMISSIONER OF INCOME TAX (INTERNATIONAL
                                    TAXATION)-1, NEW DELHI                                                                  .....Appellant
                                                                  Through:            Mr. Puneet Rai, SSC
                                                                  versus
                                    ERNST AND YOUNG U.S. LLP                                                               .....Respondent
                                                                  Through:            Mr. S. Ganesh, Sr. Adv. with Ms.
                                                                                      Ananya Kapoor, Adv.

                                    CORAM:
                                    HON'BLE MR. JUSTICE V. KAMESWAR RAO
                                    HON'BLE MR. JUSTICE VINOD KUMAR
                                                 ORDER
                          %                      30.10.2025
                          1.        Admit.

2. The following substantial question of law is framed for consideration in this appeal:

Whether on the facts and in the circumstances of the case and in law, the ITAT erred in holding that the sum of Rs.50,99,38,561/- as cost to cost reimbursement on account of secondment of employees should not be treated as FTS as per the provisions of Section 9(1)(vii) as well as under Article 12 of the India-USA Double Taxation Avoidance Agreement (DTAA) ?

3. The learned counsel for the parties shall file written submissions along with copies of judgments they wish to rely upon within a period of 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 04/11/2025 at 21:37:30 five days from today.

4. Renotify on 06.11.2025.

V. KAMESWAR RAO, J VINOD KUMAR, J OCTOBER 30, 2025 RT 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 04/11/2025 at 21:37:30