ADOBE SYSTEMS SOFTWARE IRELAND LIMITED,DUBLIN, IRELAND V. CIRCLE 1(1)(1) - ASSISTANT COMMISSIONER OF INCOME TAX, NEW DELHI

SA 98/DEL/2026

AI Insights

The case involves Adobe Systems Software Ireland Ltd., which filed an application seeking a stay on the recovery of an outstanding demand for the Assessment Year 2023-24. The demand was based on the Assessing Officer's attribution of 35% of the revenue earned by the assessee from India to its PE in India. This issue has been a legacy matter, previously decided in favor of the assessee by the Tribunal since AY 2007-08, and upheld by the Delhi High Court in subsequent years. The Department opposed the stay application but acknowledged the similarity of the issue with those considered in previous years. The Tribunal, referencing past decisions, granted the stay on the recovery of the demand.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 837609 (ITAT-DELHI)
• Duration Of Justice: 3 day(s)
• Appeal Type: Stay Application
• Pronouncement Date: 20-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2023-2024
• Appeal Filed On: 17-02-2026
• Other Referred Cases: Delhi High Court in appeals filed by the Department against the order of Tribunal for AY 2007-08, 2010-11 to 2019-20
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIKRAM SINGH SHARMA
• Keywords: Reasonable cause; Application of stay
• Section: 2

Judgement Text

" आयकर अपीलीय अधिकरण धिल्ली पीठ “डी”, धिल्ली श्री धिकास अिस्थी, न्याधयक सिस्य एिं श्री मनीष अग्रिाल, लेखाकार सिस्य क े समक्ष IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SHRI MANISH AGARWAL, ACCOUNTANT MEMBER SA No. 98/Del/2026 (Arising out of IT(IT)A No. 24/Del/2026, A.Y 2023-24) Adobe Systems Software Ireland Ltd., 4-6 Riverwalk, Citywest Business Campas, Saggart, Dublin 24, Ireland. PAN: AAHCA-7203-M ...... आवेदक/Applicant बनाम Vs. Assistant Commissioner of Income Tax, Circle 1(1)(1), International Taxation, New Delhi 110002 ..... प्रधििािी/Respondent आवेदक/Applicant by : Shri K. M Gupta, Advocate & Ms. Shruti Khimta प्रधििािीद्वारा/Respondent by : Shri Vikram Singh Sharma, Sr. DR सुनिाई की धिधि/ Date of hearing : 20/02/2026 घोषणा की धिधि/ Date of pronouncement : 20/02/2026 आिेश/ORDER PER VIKAS AWASTHY, JM: This application has been filed by the assessee seeking stay on recovery of outstanding demand for AY 2023-24. 2. Shri K. M Gupta, appearing on behalf of the assessee submits that the assessee in appeal is against the addition made by Assessing Officer (AO) in attributing 35% of revenue earned by the assessee from India to its PE in India. This is a legacy issue and has been decided by the Tribunal in favour of the assessee since AY 2007-08. The Revenue Printed from counselvise.com 2 SA No.98/DEL/2026 has carried the issue in appeal before the Hon’ble High Court, the Hon’ble High Court has upheld the order of Tribunal. He referred to the order of Hon’ble Delhi High Court in appeals filed by the Department against the order of Tribunal for AY 2007-08, 2010-11 to 2019-20. He further pointed that the AO and the Dispute Resolution Panel (DRP) in the respective orders have recorded the fact that this issue has been decided in favour of the assessee in preceding assessment years. The additions have been made just to keep the issue alive. 3. Shri Vikram Singh Sharma, representing the department opposed the Stay Application. However, the ld. DR fairly stated that the issue raised by the assessee in appeal is similar to the one considered by the Tribunal in assessee’s own case in preceding assessment years. 4. Both sides heard. In light of the fact that the issue raised by the assessee in appeal for AY 2023-24 has been decided by the Tribunal and the Hon’ble High Court in preceding assessment years in favour of the assessee, the recovery of outstanding for the impugned assessment year is stayed for a period of 180 days from the date of this order or till the disposal of appeal, whichever is earlier. 6. The Registry is directed to list the appeal for hearing on 05.05.2026. Since, the date of hearing of appeal has been announced in the open court in presence of both sides, issuance of separate notice of hearing to the parties is dispensed with. 7. The assessee shall furnish paper book, if any on or before the date of hearing of appeal, with an advance copy to opposite side in accordance with ITAT Rules. 8. The assessee shall not seek adjournment on the date fixed for hearing, without their being any reasonable cause. Printed from counselvise.com 3 SA No.98/DEL/2026 9. In the result, Stay Application of the assessee is allowed in the terms aforesaid. Order pronounced in the open court on Friday the 20th day of February, 2026. Sd/- Sd/- (MANISH AGARWAL) (VIKAS AWASTHY) लेखाकार सदस्य/ACCOUNTANT MEMBER न्यायिक सदस्य/JUDICIAL MEMBER धिल्ली / Delhi, धिनांक/Dated 20/02/2026 NV/- प्रतिलिपि अग्रेपििCopy of the Order forwarded to : 1. अपीलािी/The Appellant , 2. प्रधििािी/ The Respondent. 3. The PCIT/CIT(A) 4. धिभागीय प्रधिधनधि, आय.अपी.अधि., यदल्ली /DR, ITAT, धिल्ली 5. गाडड फाइल/Guard file. BY ORDER, //True Copy// (Dy./Asstt. Registrar) ITAT, DELHI Printed from counselvise.com "