The Commissioner Of Income Tax ... vs Ernst And Young U.S. Llp on 17 December, 2025

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Delhi High Court - Orders

The Commissioner Of Income Tax ... vs Ernst And Young U.S. Llp on 17 December, 2025

Bench: V. Kameswar Rao

                          $~84
                          *    IN THE HIGH COURT OF DELHI AT NEW DELHI
                          +    ITA 753/2025
                               THE COMMISSIONER OF INCOME TAX
                               (INTERNATIONAL TAX)-1 NEW DELHI
                                                                              .....Appellant
                                            Through: Mr. Puneet Rai, SSC, Mr. Ashvini
                                                      Kr., Mr. Rishabh Nangia, JSCs and
                                                      Mr Nikhil Jain, Advocate.

                                                                  versus


                                    ERNST AND YOUNG U.S. LLP
                                                                                                            .....Respondent
                                                                  Through:            Mr. S. Ganesh, Senior Advocate with
                                                                                      Ms. Ananya Kapoor, Advocate.


                                    CORAM:
                                    HON'BLE MR. JUSTICE V. KAMESWAR RAO
                                    HON'BLE MR. JUSTICE VINOD KUMAR
                                                 ORDER

% 17.12.2025 CM APPL. 79531/2025(Exemption)

1. Exemption is allowed, subject to all just exceptions.

2. The application stands disposed of.

ITA 753/2025

3. We have heard the learned counsel for the parties. Both the parties submit that the issues that arise for consideration in this appeal are identical to the issues which arise for consideration in ITA No.424/2025, which has been reserved for judgment. We, accordingly admit the appeal on the following substantial questions of law:-

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 23/12/2025 at 20:39:04 (A) Whether on the facts and in the circumstances of the case and in law, the Hon'ble ITAT is erred in holding that sum of Rs.24,05,12,955/- as cost to cost reimbursement on account of secondment of employees should not be treated as FTS as per the provisions of section 9(l)(vii) of the Income Tax Act, 1961 as well as under Article 12 of the India-USA Double Taxation Avoidance Agreement (DTAA)?

(B) Whether in the facts of this case, the amount of Rs.3,72,22,932/- received by the assessee shall fall within the provisions of the Article 12(4) (b) or 12(5)(e) read Article 15 of the India-USA DTAA?

4. Heard the learned counsel for parties. Reserve for judgment.

5. The learned counsel for parties shall file their written submissions in this appeal within a period of two days from today.

V. KAMESWAR RAO, J VINOD KUMAR, J DECEMBER 17, 2025 M 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 23/12/2025 at 20:39:04

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Delhi High Court - Orders