COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION)-1, NEW DELHI vs FUJITSU LIMITED

Judgment text excerpt

$~54 * IN THE HIGH COURT OF DELHI AT NEW DELHI % Date of Decision : 08.07.2025 + ITA 207/2025 COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION)-1, NEW DELHI .....Appellant Through: Mr Puneet Rai, SSC, Mr Ashvini Kumar, Mr Rishabh Nangia, Mr Gibran, JSCs and Mr Nikhil Jain, Ms Srishti Sharma and Mr Pratham Aggarwal, Advocates versus FUJITSU LIMITED .....Respondent Through: Mr Prakash Kumar and Ms Rashmi Singh, Advocates. CORAM: HON'BLE MR. JUSTICE VIBHU BAKHRU HON'BLE MR. JUSTICE TEJAS KARIA VIBHU BAKHRU, J. (ORAL) CM APPL. 39441/2025(condonation of delay) 1. For the reasons stated in the application, the delay of 19 days in filing the captioned appeal is condoned. 2. The application stands disposed of. ITA 207/2025 & CM APPL. 39440/2025 3. The Revenue has filed the present appeal under Section 260A of the Income Tax Act, 1961 [the Act], inter alia, impugning an order dated Signature Not Verified Digitally Signed ITA No.207/2025 Page 1 of 6 By:TARUN RANA Signing Date:14.07.2025 11:09:00 14.11.2024 [impugned order] passed by the learned Income Tax Appellate Tribunal [ITAT] in ITA No.2607/Del/2022 in respect of Assessment Year [AY] 2019-20. 4. The respondent [Assessee] is engaged in providing information technology support, maintenance support and software licensing services to various group entities including its Indian Associated Enterprises (AEs). 5. The Assessee – a tax resident of Japan – had preferred the aforesaid appeal [ITA no.2607/Del/2022] before the learned ITAT against the final assessment order dated 31.08.2022 passed under Section 143(3) of the Act. The controversy before the ITAT was confined to the taxability of an amount of ₹32,97,07,175/-, which was received by the Assessee in terms of an arbitral award. The Assessee had classified the same as ‘income