INFOSYS TECHNOLOGIES LTD. V. THE COMMISSIONER OF INCOME TAX

6359-2012

AI Insights

The case involves Infosys Technologies Ltd. as the appellant and the Commissioner of Income Tax & Another as the respondents, concerning issues related to income tax assessments. The High Court of Karnataka had previously relied on a judgment that was later set aside by the Supreme Court in the case of Engineering Analysis Centre of Excellence Private Limited v. Commissioner of Income Tax & Another. The Supreme Court noted that the facts as found by the Income Tax Appellate Tribunal and the authorities had not been analyzed by the High Court. Consequently, the Supreme Court remanded the case back to the High Court for a thorough re-examination of the issues and applicable laws.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 523073 (SC)
• Appeal Type: Supreme court cases
• Pronouncement Date: 01-09-2022
• Other Referred Cases: Commissioner of Income Tax & Another v. Samsung Electronics Co. Ltd., Engineering Analysis Centre of Excellence Private Limited v. Commissioner of Income Tax & Another
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: SUPREME COURT
• Department Lawyers: S GANESH
• Assessee Lawyers: BALBIR SINGH; ASHOK PANIGRAHI
• Keywords: Engineering Analysis Centre of Excellence Private Limited; High Court of Karnataka; Income Tax; Royalty

Judgement Text

"CIVIL APPEAL NO(S). 9834-9837 OF 2013 IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO(S). 9834-9837 OF 2013 INFOSYS TECHNOLOGIES LTD. APPELLANT(S) VERSUS THE COMMISSIONER OF INCOME TAX & ANR. RESPONDENT(S) WITH C.A. No. 9838-9840 OF 2013 O R D E R The impugned judgment(s) passed by the High Court of Karnataka at Bangalore had relied on the earlier judgment of the High Court in the case of ‘Commissioner of Income Tax & Another v. Samsung Electronics Co. Ltd.’ [(2012) 345 ITR 494], which judgment has been set aside and overruled by this Court in the decision reported as Engineering Analysis Centre of Excellence Private Limited v. Commissioner of Income Tax & Another [(2022) 3 SCC 321]. Before us, learned counsel for both parties have rightly stated that the facts, as found by the Income Tax Appellate Tribunal and the authorities have not been analyzed by the High Court. In view of the aforesaid position, we set aside the impugned judgment with an order of remand to the High Court to re-examine the issue and the question of law. Parties would be 1 Digitally signed by SONIA BHASIN Date: 2022.09.15 09:52:52 IST Reason: Signature Not Verified CIVIL APPEAL NO(S). 9834-9837 OF 2013 entitled to raise all pleas and contentions, in accordance with law including reliance on the judgment in the case of Engineering Analysis Centre of Excellence Private Limited (supra), and the contention of the Revenue that notwithstanding the said judgment, the payments would be covered under the head ‘Royalty’ etc. We are informed that the Review Petition No. 1422/2021 titled “The Commissioner of Income Tax International Taxation & Another v. Engineering Analysis Centre of Excellence Private Limited Etc.,” is pending. In case any order is passed, it will be open to the parties to rely upon the said order. The appeals are disposed of in the aforesaid terms. Pending application(s), if any, shall stand disposed of. ……………………………………………. .J. [SANJIV KHANNA] ……………………………………………. .J. [J.K. MAHESHWARI] NEW DELHI; SEPTEMBER 01 , 2022. sb 2 CIVIL APPEAL NO(S). 9834-9837 OF 2013 REVISED ITEM NO.104 COURT NO.12 SECTION IV-A S U P R E M E C O U R T O F I N D I A RECORD OF PROCEEDINGS Civil Appeal No(s). 9834-9837/2013 INFOSYS TECHNOLOGIES LTD. Appellant(s) VERSUS THE COMMISSIONER OF INCOME TAX & ANR. Respondent(s) WITH C.A. No. 9838-9840/2013 (IV-A) Date : 01-09-2022 These appeals were called on for hearing today. CORAM : HON'BLE MR. JUSTICE SANJIV KHANNA HON'BLE MR. JUSTICE J.K. MAHESHWARI For Parties Mr. Balbir Singh, ASG Mr. Ashok Panigrahi, Adv. Ms. Gargi Khanna, Adv. Mr. Adit Khorana, Adv. Mr. Shashank Bajpai, Adv. Mr. Raj Bahadur Yadav, AOR Mr. S. Ganesh, Sr. Adv. Ms. Archana Sahadeva, AOR Mr. Tejveer Bhatia, Adv. Mr. R. Swrup, Adv. Mr. Gaurav Sharma, Adv. Mr. T. Suryanarayana, Sr. Adv. Mr. Kunal Verma, AOR Ms. Yugandhara Pawar Jha, Adv. Mr. Ashwin Kumar Nair, Adv. Ms. Lavanya Dhawan, Adv. Mr. Ritik Gupta, Adv. UPON hearing the counsel the Court made the following O R D E R The appeals are disposed of in terms of the signed order. Pending application(s), if any, shall stand disposed of. (SONIA BHASIN) (R.S. NARAYANAN) COURT MASTER (SH) COURT MASTER (NSH) [Signed Order is placed on the file] 3 CIVIL APPEAL NO(S). 9834-9837 OF 2013 ITEM NO.104 COURT NO.12 SECTION IV-A S U P R E M E C O U R T O F I N D I A RECORD OF PROCEEDINGS Civil Appeal No(s). 9834-9837/2013 INFOSYS TECHNOLOGIES LTD. ETC. Appellant(s) VERSUS THE COMMISSIONER OF INCOME TAX & ANR. Respondent(s) WITH C.A. No. 9838-9840/2013 (IV-A) Date : 01-09-2022 These appeals were called on for hearing today. CORAM : HON'BLE MR. JUSTICE SANJIV KHANNA HON'BLE MR. JUSTICE J.K. MAHESHWARI For Parties Mr. Balbir Singh, ASG Mr. Ashok Panigrahi, Adv. Ms. Gargi Khanna, Adv. Mr. Adit Khorana, Adv. Mr. Shashank Bajpai, Adv. Mr. Raj Bahadur Yadav, AOR Mr. S. Ganesh, Sr. Adv. Ms. Archana Sahadeva, AOR Mr. Tejveer Bhatia, Adv. Mr. R. Swrup, Adv. Mr. Gaurav Sharma, Adv. Mr. T. Suryanarayana, Sr. Adv. Mr. Kunal Verma, AOR Ms. Yugandhara Pawar Jha, Adv. Mr. Ashwin Kumar Nair, Adv. Ms. Lavanya Dhawan, Adv. Mr. Ritik Gupta, Adv. UPON hearing the counsel the Court made the following O R D E R The appeals are disposed of terms of the signed order. Pending application(s), if any, shall stand disposed of. (SONIA BHASIN) (R.S. NARAYANAN) COURT MASTER (SH) COURT MASTER (NSH) [Signed Order is placed on the file] 4 "