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Delhi High Court - Orders

Teva Pharmaceuticals Usa Inc vs Deputy Commissioner Of Income Tax ... on 3 February, 2023

Author: Rajiv Shakdher

Bench: Rajiv Shakdher

                            $~15
                            *      IN THE HIGH COURT OF DELHI AT NEW DELHI
                            +      W.P.(C) 1295/2023
                                   TEVA PHARMACEUTICALS USA INC.                ..... Petitioner
                                                   Through: Mr Harish N. Salve, Sr. Advocate
                                                              with Ms Anuradha Dutt, Mr Sachit
                                                              Jolly, Mr Rohit Garg, Ms Disha Jham,
                                                              Mr Sohum Dua and Ms Soumya
                                                              Singh, Advocates.
                                                   versus
                                   DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 3 (1) (1),
                                   INTERNATIONAL TAXATION NEW DELHI & ANR.
                                                                                ..... Respondents
                                                   Through: Mr Sunil Aggarwal, Sr. Standing
                                                              Counsel.
                                   CORAM:
                                   HON'BLE MR JUSTICE RAJIV SHAKDHER
                                   HON'BLE MS JUSTICE TARA VITASTA GANJU
                                                   ORDER

% 03.02.2023 [Physical Hearing/Hybrid Hearing (as per request)] CM APPL. 4916/2023

1. Allowed, subject to the petitioner filing legible copies of the annexures, at least three days before the next date of hearing. W.P.(C) 1295/2023 and CM APPL. 4915/2023 [Application filed on behalf of the petitioner seeking interim relief]

2. This writ petition concerns Assessment Year (AY) 2014-15.

3. In the writ petition, a challenge is laid to the notice dated 29.07.2022, issued under Section 148 of the Income Tax Act, 1961 [in short, "the Act"] and the order dated 28.07.2022, passed under Section 148A(d) of the Act. 3.1. In addition, thereto, a challenge is laid to the notice dated 02.06.2022, W.P.(C) 1295/2023 page 1 of 3 Signature Not Verified Digitally Signed By:TARUN RANA Signing Date:07.02.2023 11:28:18 issued under Section 148A(b) of the Act.

4. The petitioner before us is a company incorporated in the USA. The broad issue which arises for consideration, according to Mr Harish N. Salve, learned senior counsel, who appears on behalf of the petitioner, is whether payments made by Ranbaxy Laboratories Limited [in short, "Ranbaxy India"] to TEVA Pharmaceuticals Industries Limited, Israel [in short, "TEVA Israel"] are taxable in the hands of the petitioner i.e., TEVA Pharmaceuticals USA Inc. [in short, "TEVA USA"].

5. It appears that the amended agreement dated 07.12.2011 was signed by the petitioner in favour of TEVA Israel. The petitioner's case is that the intellectual property rights vest in TEVA Israel and that petitioner is merely a facilitator. According to the petitioner, it is neither entitled to payment, nor has it received the same.

6. According to us, the matter requires examination. We are also told by Mr Salve that there are four writ petitions pending consideration between the same parties and are listed for arguments before the court on 02.05.2023. These writ petitions are numbered as WP(C) 10711/2017, WP(C) 10714/2017, WP(C) 12721/2019 and WP(C) 4065/2022.

7. The fact that there are other writ petitions also pending consideration between the same parties, qua one issue or the other, is not disputed by Mr Sunil Aggarwal, senior standing counsel, who appears on behalf of the respondents/revenue.

8. Accordingly, issue notice.

8.1 Mr Aggarwal accepts notice on behalf of the respondents/revenue.

9. Counter-affidavit will be filed within four weeks.

                            W.P.(C) 1295/2023                                                   page 2 of 3




Signature Not Verified
Digitally Signed By:TARUN
RANA
Signing Date:07.02.2023
11:28:18
                             9.1    Rejoinder thereto, if any, will be filed, at least five days before the
                            next date of hearing.
                            10.    List the matter on 02.05.2023.

11. In the meanwhile, there shall be a stay on the operation of the impugned notices and order.

RAJIV SHAKDHER, J TARA VITASTA GANJU, J FEBRUARY 3, 2023 / tr Click here to check corrigendum, if any W.P.(C) 1295/2023 page 3 of 3 Signature Not Verified Digitally Signed By:TARUN RANA Signing Date:07.02.2023 11:28:18