DEPUTY COMMISSIONER OF INCOME TAX(IT)-2(1)-2 MUMBAI, MUMBAI V. DELOITTE TOUCHE TOHMATSU INDIA LLP, MUMBAI

ITA 1714/MUM/2025

AI Insights

The case involves multiple appeals by the Deputy Commissioner of Income Tax against Deloitte Touche Tohmatsu India LLP concerning the assessment year 2020-21. The primary issue was whether certain payments made by the assessee to Deloitte Global Holdings Services Limited for global brand, communications, and technology/knowledge management services constituted 'royalty' under Article 13(3) of the India-UK DTAA, and thus were taxable in India. The CIT(A) had previously ruled in favor of the assessee, a decision which was supported by the Tribunal's earlier rulings in similar cases. The Tribunal, referencing these precedents, upheld the CIT(A)'s decision and dismissed the revenue's appeals.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 775063 (ITAT-MUMBAI)
• Duration Of Justice: 5 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-09-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: I
• Assessment Year: 2020-2021
• Appeal Filed On: 11-03-2025
• Other Referred Cases: Deloitte Haskins & Sells LLP vs. Deputy Commissioner of Income Tax
• Laws Referred To: Article 13(3) of the India-UK DTA
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHIR KRISHNA KUMAR; DR
• Assessee Lawyers: NIRAJ SHETH; DARSHANA SHAH; ARS
• Keywords: TDS; Double taxation relief

Judgement Text

" | आयकर अपीलीय अिधकरण ा यपीठ, मुंबई | IN THE INCOME TAX APPELLATE TRIBUNAL “I” BENCH, MUMBAI BEFORE SHRI NARENDRA KUMAR BILLAIYA, HON’BLE ACCOUNTANT MEMBER & SHRI ANIKESH BANERJEE, HON’BLE JUDICIAL MEMBER I.T.A. No. 1711/Mum/2025 Assessment Year: 2020-21 I.T.A. No. 1712/Mum/2025 Assessment Year: 2020 I.T.A. No. 1713/Mum/2025 Assessment Year: 2020-21 I.T.A. No. 1714/Mum/2025 Assessment Year: 2020-21 Deputy Commissioner of Income Tax (IT) -2(1)-2, Mumbai Vs Deloitte Touche Tohmatsu India LLP 32nd Floor, One International Center, Tower 3 Senapati Bapat Marg Elphinstone Road (West) Mumbai - 400013 [PAN: AAHTS4584L] अपीला थ\u0016/ (Appellant) \u0017\u0018 यथ\u0016/ (Respondent) Assessee by : Shri Niraj Sheth, Adv./Ms. Darshana Shah, A/Rs Revenue by : Shir Krishna Kumar, Sr. D/R सुनवाई की तारीख/Date of Hearing : 01/09/2025 घोषणा की तारीख /Date of Pronouncement : 02/09/2025 आदेश/O R D E R PER NARENDRA KUMAR BILLAIYA, AM: The captioned appeals by the revenue are preferred against four separate order of ld. CIT(A)-56, Mumbai {hereinafter ‘the ld. CIT(A)} dated 16/12/2024 pertaining to AY 2020-21. 2. The common grievance in the captioned appeals read as under:- “1. Whether on the facts and circumstances of the case and in law, the Ld.CIT(A) erred in following the decision of Hon'ble ITAT that the payment made by the assessee to the Deloitte Global Holdings Services Limited against 1) Global brand, 2) Global Communications and 3) Global technology/ Knowledge Management were not for information concerning commercial experience in terms of Article 13(3) of the India- Printed from counselvise.com I.T.A. No. 1713/Mum/2025 I.T.A. No. 1712/Mum/2025 I.T.A. No. 1711/Mum/2025 I.T.A. No. 1714/Mum/2025 2 UK DAA hence were not in the nature of royalty and is not liable for taxation in India with the meaning of Article 13(3) of the Indo UK treaty ? 2. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) erred in directing the Assessing Officer to grant refund of taxes paid pursuant to the order u/s 195(2) dated 28.05.2019 even though the department has filed appeal against the decision of Hon'ble ITAT for A.Y. 2018-19 ?” 3. At the very outset, the ld. Counsel for the assessee pointed out that the issues raised in the captioned appeals have been decided by the Co- ordinate Benches in earlier AYs in favour of the assessee and against the revenue. The ld. D/R fairly accepted that the issues had been decided by the Co-ordinate Bench in earlier assessment years. 4. We have carefully perused the orders of the Co-ordinate Benches in ITA Nos. 201 to 233/Mum/2021; 4800 to 4804/Mum/2019 & 4810 to 4814/Mum/2019 [Deloitte Haskins & Sells LLP] order dated 27/07/2022. 5. We find force in the contentions of the ld. Counsel for the assessee. The Co-ordinate Bench in its order dt. 27/07/2022 (supra), has held as under:- “23. Accordingly, we hold that in all the appeals the payments made to Deloitte Global Holdings Ltd. do not fall in the scope and definition of Royalty under Article 13(3) of India UK DTAA and consequently appellants were not required to deduct TDS while making the payment. Thus, all the appeals of the assessees are allowed. 24. In the result, all the appeals of the asssessees are allowed.” 6. We further find that the ld. CIT(A) while allowing the appeal of the assessee has followed the aforementioned decision of the Co-ordinate Bench while deciding the issues at para 6 on page 7 of his order. The Co- ordinate Bench has considered a similar issue in ITA No. 4515 & 4517/Mum/2024, AY 2018-19; ITA No. 5715/Mum/2024; AY 2019-20; ITA Nos. 5089 & 5091/Mum/2024 along with CO Nos. 250 & 251/Mum/2024, AY 2019-20. As no distinguishing decision has been brought to our notice, Printed from counselvise.com I.T.A. No. 1713/Mum/2025 I.T.A. No. 1712/Mum/2025 I.T.A. No. 1711/Mum/2025 I.T.A. No. 1714/Mum/2025 3 respectfully following the decision of the Co-ordinate Bench, we decline to interfere with the findings of the ld. CIT(A). 7. In the result, the captioned appeals filed by the revenue are dismissed. Order pronounced in the Court on 2nd September, 2025 at Mumbai. Sd/- Sd/- (ANIKESH BANERJEE) (NARENDRA KUMAR BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai, Dated 02/09/2025 *SC SrPs *SC SrPs *SC SrPs *SC SrPs आदेश की \u0015ितिलिप अ\u001aेिषत/Copy of the Order forwarded to : 1. अपीलाथ / The Appellant 2. \u0015 थ / The Respondent 3. संबंिधत आयकर आयु\" / Concerned Pr. CIT 4. आयकर आयु\" ) अपील ( / The CIT(A)- 5. िवभागीय \u0015ितिनिध ,आयकर अपीलीय अिधकरण, मुंबई /DR,ITAT, Mumbai, 6. गाड& फाई/ Guard file. आदेशानुसार/ BY ORDER TRUE COPY Assistant Registrar आयकर अपीलीय अिधकरण ITAT, Mumbai Printed from counselvise.com "