ERICSSON INDIA GLOBAL SERVICES PVT LTD,NEW DELHI V. ACIT SPL. RANGE 3, NEW DELHI

MA 25/DEL/2025

AI Insights

The case involves Ericsson India Private Limited, which filed miscellaneous applications seeking to recall an earlier order of the ITAT regarding two additional grounds: the allowability of deduction on account of education cess and the non-chargeability of interest under sections 234B and 234C of the Income Tax Act on additional income accepted pursuant to an APA. The Tribunal rejected the recall for the education cess issue as the assessee had changed its stance without any error on the part of the Tribunal. However, for the issue concerning interest under sections 234B and 234C, the Tribunal acknowledged a mistake apparent from the record as the relevant case laws and synopsis provided by the assessee were not considered in the earlier judgment, warranting a recall for this limited purpose.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 714759 (ITAT-DELHI)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 05-08-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Assessment Year: 2013-2014
• Other Referred Cases: Colt Technology Services (I) (P) Ltd vs DCIT
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RAJESH KUMAR DHANESTA
• Assessee Lawyers: PARAS S. SALVA
• Section: 234B

Judgement Text

"Page | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”: NEW DELHI BEFORE SHRI M. BALAGANESH, ACCOUNTANT MEMBER AND SHRI ANUBHAV SHARMA, JUDICIAL MEMBER MAs 25 &24/Del/2025 (In ITA Nos. 2367 & 2368/Del/2019 (Assessment Years: 2013-14 & 2014-15) Ericsson India Private Limited (formerly known as Ericsson India Global Services Private Limited), 4th Floor, Dhaka House, 18/17, W.Ε.Α. Pusa Lane, Karol Bagh, New Delhi-110005 Vs. DCIT, Circle-71(1), New Delhi (Appellant) (Respondent) PAN: AACCE4175D Assessee by : Shri Paras S. Salva, Adv Ms. Vanshika Jain, CA Revenue by: Shri Rajesh Kumar Dhanesta, Sr. DR Date of Hearing 01/08/2025 Date of pronouncement 05/08/2025 O R D E R PER M. BALAGANESH, A. M.: 1. By virtue of these miscellaneous applications, the assessee seeks to recall the order passed by this Tribunal in ITA Nos. 2367 & 2368/Del/2019 dated 10-07-2024. 2. We have heard the rival submissions and perused the materials available on record. On perusal of the miscellaneous applications preferred by the assessee, the main grievance of the assessee is that the additional ground grounds raised by the assessee had not been properly adjudicated. The first issue of additional ground raised by the assessee is on allowability of deduction on account of education cess. This was stated to be not pressed by the Printed from counselvise.com MAs 25 &24/Del/2025 Ericsson India Private Limited Page | 2 learned AR at the time of main appeals hearing which was also mentioned in the synopsis. Accordingly, the Tribunal had treated the first issue raised in Additional Ground number as not pressed. Now, the learned AR before us in support of an affidavit states that the assessee would like to contest the said ground by way of filing an appeal before the Hon’ble High Court in line with the decision taken by the assessee for Assessment year 2015-16. It is very clear that only the assessee had changed its stand with regard to this ground and there was no error that could be attributed in the order of the Tribunal warranting rectification under section 254(2) of the Act. Hence, the claim of the assessee in the miscellaneous application qua the recalling of the additional ground on account of education cess is hereby rejected and dismissed. 3. The next issue in the Additional Ground raised by the assessee is regarding non-chargeability of interest under section 234B and 234C of the Act on the additional income accepted by the assessee pursuant to Advance Pricing Agreement (APA). This ground was adjudicated by the assessee by this Tribunal in Para 20 by stating that interest under section 234B and 234C of the Act shall be charged as per terms mentioned in the APA. We find that the assessee had filed Synopsis at the time of hearing of main appeals wherein the decision of this Delhi Tribunal in the case of Colt Technology Services (I) (P) Ltd vs DCIT reported in 141 taxmann.com 386 dated 13-4-2022. The Synopsis together with various case laws relied including the aforesaid case law of Delhi Tribunal was not at all considered by the Tribunal while adjudicating the issue. This constitute mistake apparent from record warranting rectification under section 254(2) of the Act. Hence we deem it fit and appropriate to recall the order passed by the Tribunal only for Printed from counselvise.com MAs 25 &24/Del/2025 Ericsson India Private Limited Page | 3 the limited purpose of adjudication of second issue raised in Additional Ground with regard to interest under section 234B and 234C of the Act. 4. We make it clear that as per the Miscellaneous Applications filed by the assessee, the abovementioned observations would be relevant in toto for the Assessment Year 2013-14 and the observations made hereinabove with regard to chargeability of interest under section 234B and 234C of the Act shall not be applicable for Assessment Year 2014- 15. 5. Hence the appeal of Assessment Year 2013-14 is recalled for the limited purpose of adjudication of chargeability of interest under section 234B and 234C of the Act raised in additional ground in respect of additional income pursuant to APA. The registry is directed to fix the main appeal for the Assessment Year 2013-14 for hearing on 30-9-2025 after sending notice of hearing to both the parties. 6. In the result, the miscellaneous application of the assessee for the Assessment Year 2013-14 is partly allowed and that for the Assessment Year 2014-15 is dismissed. Order pronounced in the open court on 05/08/2025. -Sd/- -Sd/- (ANUBHAV SHARMA) (M. BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 05/08/2025 A K Keot Copy forwarded to 1. Applicant 2. Respondent 3. CIT 4. CIT (A) Printed from counselvise.com MAs 25 &24/Del/2025 Ericsson India Private Limited Page | 4 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi Printed from counselvise.com "