SFDC IRELAND LIMITED vs COMMISSIONER OF INCOME TAX & ANR.

Judgment text excerpt

IN THE HIGH COURT OF DELHI AT NEW DELHI % Judgment delivered on: 17.02.2025 + W.P.(C) 12847/2024 and CM APPL. 53630/2024 SFDC IRELAND LIMITED ..... Petitioner versus COMMISSIONER OF INCOME TAX & ANOTHER ... Respondents Advocates who appeared in this case: For the Petitioner : Mr Ajay Vohra, Senior Advocate with Mr Aniket D Agarwal and Mr Samarth Chaudhari, Advocates. For the Respondent : Mr Sunil Aggarwal, Senior Standing Counsel, Mr Shivansh B Panday, Ms Priya Sarka, Mr Viplav Acharya, JSCs and Mr Utkarsh Tiwari, Advocates. CORAM HON’BLE MR JUSTICE VIBHU BAKHRU HON’BLE MR JUSTICE TUSHAR RAO GEDELA JUDGMENT VIBHU BAKHRU, J. 1. The petitioner has filed the present petition, inter alia, impugning an order dated 09.07.2024 (hereafter the impugned order) passed by respondent no.2 under Section 197 of the Income Tax Act, 1961 (hereafter the Act) in respect of the Financial Year (FY) 2024-25 relevant to the Assessment Year (AY) 2025-26 authorizing the petitioner to receive the payment (estimated at ₹6,33,34,44,669/-) from Signature Not Verified Digitally Signed By:RAM KUMAR W.P.(C) No.12847/2024 Page 1 of 44 Signing Date:17.02.2025 20:33:43 M/s Salesforce.com India Private Limited (hereafter SFDC India) after withholding Tax Deducted at Source (TDS is short) at the rate of 2% (excluding cess and surcharges). 2. The petitioner also impugns the certificate dated 09.07.2024 (hereafter the impugned certificate) issued under Section 197 of the Act authorising SFDC India to make payments on account of the petitioner after deducting withholding tax at the rate of 2%. 3. According to the petitioner, its income resulting from the receipts from SFDC India is not chargeable to tax in India and, therefore, its application to authorise payments without deducting any withholding tax, ought