EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.,WASHINGTON, USA V. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 1(2)(2) INTERNATIONAL TAXATION NEW DELHI, NEW DELHI

SA 96/DEL/2025

AI Insights

The case involves Expeditors International of Washington, Inc., which filed an application seeking a stay on the recovery of an outstanding demand for the assessment year 2022-23. The demand was based on three counts: (i) categorizing fees for freight/logistics support services as Fee for Technical Services; (ii) categorizing reimbursement of global account management charges as Fee for Technical Services; and (iii) categorizing reimbursement of lease line charges as Royalty. The assessee argued that these issues had been previously decided in their favor by the Tribunal in earlier assessment years. The department opposed the stay application, suggesting a deposit of 20% of the outstanding demand. However, the Tribunal noted that the issues were identical to those in previous years and had been resolved in favor of the assessee.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 472460 (ITAT-DELHI)
• Appeal Type: Stay Application
• Pronouncement Date: 28-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2022-2023
• Other Referred Cases: ITA No. 2855/Del/2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAHIL KUMAR BANSAL
• Keywords: Application of stay

Judgement Text

" आयकर अपीलीय अिधकरण िदʟी पीठ “डी”, िदʟी ŵी िवकास अव̾थी, Ɋाियक सद˟ एवं मनीष अŤवाल, लेखाकार सद˟ क े समƗ IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SHRI MANISH AGARWAL, ACCOUNTANT MEMBER SA No.96/Del/2025 (Arising out of ITA No. 869/Del/2025, A.Y 2022-23) Expeditors International of Washington, Inc. 1015 Third Avenue, Seattle, WA 98104, USA PAN: AACCE-4315-R ...... आवेदक/Applicant बनाम Vs. Assistant Commissioner of Income Tax, (International Tax), Circle 1(2)(2), Civic Centre, New Delhi 110002 ..... ᮧितवादी/Respondent आवेदक/Applicant : S/Shri Rohan Khare & Priyam Bhatnagar, Advocates ŮितवादीȪारा/Respondent by : Shri Sahil Kumar Bansal, Sr. DR सुनवाई कᳱ ितिथ/ Date of hearing : 28/02/2025 घोषणा कᳱ ितिथ/ Date of pronouncement : 28/02/2025 आदेश/ORDER PER VIKAS AWASTHY, JM: This Application has been filed by the assessee seeking stay on recovery of outstanding demand for assessment year 2022-23. 2. Shri Rohan Khare appearing on behalf of the assessee submitted that in assessment year 2022-23 the addition has been made on three counts i.e. (i) holding fee for freight/logistics support services as Fee for Technical Services; (ii) holding reimbursement of global account management charges in the nature of Fee for Technical Services; and (iii) reimbursement of lease line charges as Royalty. The ld. Counsel for the assessee submitted that all these three issues are perennial and have been decided in favour of the assessee by the Tribunal in preceding assessment years. To substantiate his contention, he referred to the Tribunal order in ITA 2 SA No.96/DEL/2025 No.2855/Del/2023 for AY 2021-22 decided on 09.02.2024. He pointed that in para 6 of the said order, the Tribunal has recorded that in preceding assessment years identical issue has been decided by the Tribunal in favour of the assessee. 3. Shri Sahil Kumar Bansal representing the department vehemently opposed the Stay Application and prayed for direction to the assessee for deposit of 20% of outstanding demand in the impugned assessment year. However, the ld. DR fairly stated that the issues raised in appeal for impugned assessment year have been considered by the of the Tribunal in the past for earlier assessment years in the case of assessee. 4. Both sides heard. It is an undisputed fact that the additions/TP adjustments made in impugned assessment year is similar to the one made in preceding assessment years in assessee’s own case. We find that the Coordinate Bench in assessee’s own case in AY 2021-22 in ITA No. 2855/Del/2023 (supra) has deleted the additions made on account of all the three counts on which additions have been made in the assessment year under appeal. Considering the fact that issues are identical in impugned assessment year, we have no hesitation in granting the benefit of stay on recovery of outstanding demand in impugned assessment year. The recovery of outstanding demand shall remain stayed for a period of 180 days from the date of this order or till the disposal of appeal, whichever is earlier. 5. The Registry is directed to fix appeal for hearing on 27.03.2025. Since, the date of hearing of appeal has been announced in the open court, issuance of separate notice of hearing to the parties is dispensed with. 3 SA No.96/DEL/2025 6. Paper book, if any; be filed before the next date of hearing with an advance copy to the opposite side, in accordance with ITAT Rules. 7. In the result, Stay Application of the assessee is allowed in the terms aforesaid. Order pronounced in the open court on Friday the 28th day of February, 2025. Sd/- Sd/- (MANISH AGARWAL) (VIKAS AWASTHY) लेखाकार सद˟/ACCOUNTANT MEMBER Ɋाियक सद˟/JUDICIAL MEMBER िदʟी / Delhi, ᳰदनांक/Dated 28/02/2025 NV/- ᮧितिलिप अᮕेिषतCopy of the Order forwarded to : 1. अपीलाथᱮ/The Appellant , 2. ᮧितवादी/ The Respondent. 3. The PCIT/CIT(A) 4. िवभागीय ᮧितिनिध, आय.अपी.अिध., िदʟी /DR, ITAT, िदʟी 5. गाडᭅ फाइल/Guard file. BY ORDER, //True Copy// (Dy./Asstt. Registrar) ITAT, DELHI "