THE PR. COMMISSIONER OF INCOME TAX -7 vs STERIA INDIA PVT. LTD.

Judgment text excerpt

$~2 * IN THE HIGH COURT OF DELHI AT NEW DELHI % Date of Decision : 12.12.2025 + ITA 739/2025, CM APPL. 77781/2025 THE PR. COMMISSIONER OF INCOME TAX -7 .....Appellant Through: Mr. Ruchir Bhatia, SSC with Mr. Anant Mann, JSC, Mr. P. Gupta, JSC. versus STERIA INDIA PVT. LTD. .....Respondent Through: Mr. Ajay Vohra, Sr. Adv. with Mr. Neeraj Jain and Mr. Aniket D. Agrawal, Advs. CORAM: HON'BLE MR. JUSTICE V. KAMESWAR RAO HON'BLE MR. JUSTICE VINOD KUMAR V. KAMESWAR RAO , J. (ORAL) 1. This appeal lays a challenge to order dated 17.11.2020 passed by the learned Income Tax Appellate Tribunal, Bench „1-2‟, New Delhi (“ITAT”) deciding two ITA Nos. being 512 & 511/Del/2016 relating to Assessment Year (“AY”) 2010-11 and 2011-12 respectively. 2. We have been informed by Mr. Ruchir Bhatia, learned Senior Standing Counsel for the appellant that this appeal is primarily relatable to ITA No. 512/Del/2016 concerning AY 2010-11 whereby the ITAT has upheld the order passed by the Dispute Resolution Panel. 3. We may state that the appellant/Revenue has proposed the following substantial questions of law for consideration:- “2.1 Whether the Ld. ITAT erred in not appreciating that the Arm's Length Price of an Signature Not Verified Signed By:PRADEEP ITA 739/2025 Page 1 of 8 SHARMA Signing Date:15.12.2025 15:08:36 international transaction, as defined in Section 92F(ii) of the Income tax Act, 1961, is the price applied or proposed to be applied in an uncontrolled transaction, and consequently must remain uninfluenced by extraneous factors and post transaction events like foreign exchange fluctuation which are likely to materially affect the actual receipt or payment but do not impact the price intended to be charged or paid.? 2.2 Whether the Ld. ITAT erred in not appreciating the fact that the