THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -1 vs ADOBE SYSTEMS SOFTWARE IRELAND LTD

Judgment text excerpt

$~19 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 32/2025, CM APPL. 7533/2025 & CM APPL. 7534/2025 THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -1 .....Appellant Through: Mr. Ruchir Bhatia, SSC. versus ADOBE SYSTEMS SOFTWARE IRELAND LTD .....Respondent Through: Mr. Vishal Kalra, Advocate. % Date of Decision: 7th February, 2025 CORAM: HON'BLE THE CHIEF JUSTICE HON'BLE MR. JUSTICE TUSHAR RAO GEDELA JUDGEMENT TUSHAR RAO GEDELA, J.: (ORAL) CM APPL. 7533/2025 & CM APPL. 7534/2025 1. Cause shown is sufficient. Accordingly, the application is allowed. Delay of 164 days in filing as well as delay of 40 days in refilling the appeal is condoned. 2. The applications stand disposed of. ITA 32/2025 3. The present appeal has been filed under Section 260A of the Income Tax Act, 1961 assailing the order dated 09.02.2024 passed by the Income Tax Appellate Tribunal (ITAT) in respect of the respondent/Assessee for the Assessment Year (AY) 2021-22. Signature Not Verified Digitally Signed ITA 32/2025 Page 1 of 3 By:MADHU SARDANA Signing Date:11.02.2025 12:52:07 4. At the outset, Mr. Ruchir Bhatia, learned senior standing counsel counsel appearing for the revenue brings attention of this Court to para 2 of the appeal wherein substantial questions of law have been framed by the appellant, which reads thus:- “2.1 Whether on' the facts and circumstances of the case, and in law, the Ld. ITAT erred in holding that the case of the assessee company squarely coved by the Hon'ble Apex Court in DIT v. Morgan Stanley Co [2007] 292 ITR 416 (SC) and not the exception, stipulated in the said judgment and hence nothing further is attributable to the assessee's PE in India despite that fact that Adobe India is performing functions which are wider in scope than what is mentioned in the agreemen