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Pr. Commissioner Of Income Tax, Delhi-7 vs Tupperware India Pvt. Ltd on 25 May, 2023

Author: Rajiv Shakdher

Bench: Rajiv Shakdher

                                    $~35
                                    *           IN THE HIGH COURT OF DELHI AT NEW DELHI
                                    +           ITA 304/2023
                                                PR. COMMISSIONER OF INCOME TAX, DELHI-7..... Appellant
                                                                 Through: Mr Puneet Rai, Sr. Standing Counsel
                                                                            with Ms Madhavi Shukla and Mr
                                                                            Ashnini Kumar, Jr. Standing Counsel.
                                                                 versus
                                                TUPPERWARE INDIA PVT. LTD.                    ..... Respondent
                                                                 Through: Mr Rohit Tiwari and Ms Tanya,
                                                                            Advocates.
                                                CORAM:
                                                HON'BLE MR JUSTICE RAJIV SHAKDHER
                                                HON'BLE MR JUSTICE GIRISH KATHPALIA
                                                                 ORDER

% 25.05.2023 [Physical Hearing/Hybrid Hearing (as per request)] CAV 278/2023

1. Since appearance has been entered on behalf of the respondent/assessee, the caveat is discharged.

2. Allowed, subject to the petitioner filing legible copies of the annexures, at least three days before the next date of hearing.

3. This is an application filed on behalf of the appellant/revenue seeking condonation of delay in re-filing the appeal.

4. Given the period of delay involved, we are inclined to condone the delay in re-filing the appeal.

4.1 It is ordered accordingly.

ITA 304/2023 page 1 of 3 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 25/09/2023 at 05:24:02

5. The application is disposed of in the aforesaid terms. ITA 304/2023 and CM APPL.28277/2023[Application filed on behalf of the appellant seeking condonation of delay of 93 days in filing the appeal]

6. This appeal concerns Assessment Year (AY) 2013-2014.

7. The appellant/revenue seeks to challenge the order dated 01.08.2022 passed by the Income Tax Appellate Tribunal [in short, "Tribunal"].

8. Mr Puneet Rai, learned senior standing counsel, who appears on behalf of the appellant/revenue, submits that there are two broad issues which arise for consideration.

(i) First, whether in determiningthe Arm's Length Price concerning advertisement, marketing and promotion expenses, the Tribunal misdirected itself in holding that the bright line test would not apply.

(ii) Second, whether the Tribunal was right in remanding the issue concerning royalty paid by the respondent/assesseeto its Associated Enterprises.

9. Insofar as the first issue is concerned, it is not disputed by Mr Rai, that the view taken by the Tribunal is in consonance with the judgment of this Court in Sony Ericsson Mobile Communications India Pvt. Ltd. v. Commissioner of Income Tax - III, (2015) 374 ITR 118 (Del.).

10. Mr Rai, however, says that the aforementioned decision of this Court has been challenged by the appellant/revenue, by way of an SLP. We are informed, that the said SLP is pending adjudication.

ITA 304/2023 page 2 of 3 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 25/09/2023 at 05:24:02

11. Accordingly, insofar as the first issue is concerned, and as far as this Court is concerned, no substantial question of law arises. 11.1 However, it is made clear, that the parties will abide by the final decision taken in the SLP filed by the appellant/revenue.

12. As regards the other issue referred to hereinabove, issue notice. 12.1 Mr Rohit Tiwariaccepts notice on behalf of the respondent/assessee.

13. The respondent/assessee will file a reply to the application filed on behalf of the appellant/revenue seeking condonationof delay in filing the appeal.

14. The reply would be filed within the next four weeks. 14.1 Rejoinder thereto, if any, will be filed at least five days before the next date of hearing.

15. List the matter on 08.11.2023.

16. Counsel for the parties will file their written submissions, not exceeding three pages each, at least five days before the next date of hearing.

                                                                                                                            RAJIV SHAKDHER, J


                                                                                                                           GIRISH KATHPALIA, J
                                                MAY 25, 2023 / tr
                                                                                                  Click here to check corrigendum, if any

                                    ITA 304/2023                                                                                     page 3 of 3




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 25/09/2023 at 05:24:02