PR. COMMISSIONER OF INCOME-TAX-14, MUMBAI vs PFIZER PRODUCTS INDIA PVT. LTD.

Judgment text excerpt

2026:BHC-OS:6985-DB Bhogale 901.itxa-2479-2018.odt IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.2479 OF 2018 Pr. Commissioner of Income-Tax-14, Mumbai Aayakar Bhavan, M. K. Road, Mumbai – 400 020 … Appellant Versus Pfizer Products India Pvt. Ltd. 5, Patel Estate, Off S. V. Road, Jogeshwari (W), Mumbai – 400 102. PAN No. AADCP8985B .… Respondent **** Adv. Simran Hadi h/f Adv. Suresh Kumar, for the Appellant. Adv. Paras Savla a/w Adv. Pratik Poddar, Adv. Harsh Shah and Adv. Rajnandini Shukla, for the Respondent. **** CORAM : M. S. KARNIK & S. M. MODAK, JJ. DATE : 12th MARCH, 2026 JUDGMENT (PER M. S. KARNIK, J.) : 1. The challenge in this appeal filed by the Revenue under Section 260A of the Income Tax Act, 1961 (“the said Act”, for short) is to the order dated 01.09.2017 passed by the Income Tax Appellate Tribunal, Mumbai, (“ITAT”, for short). The Tribunal dismissed the Revenue’s appeal and upheld the decision of Commissioner of Income Tax (Appeals) (“CIT(A)”, for short) rendered vide order dated 31.12.2014, deleting the disallowance 1 Bhogale 901.itxa-2479-2018.odt of cross charges of Rs.14,51,77,000/- undertaken under section 40(a)(ia) of the said Act for non-deduction of tax at source while filing the income tax returns for the Assessment Year 2009-10. 2. The appeal raises the following substantial questions of law :- “(i) Whether on the facts and in the circumstances of the case and in law, the Hon'ble ITAT erred in confirming the decision of Ld. CIT(A), deleting the disallowances of cross charges of Rs.14,51,77,000/- for non-deduction of TDS u/s 40(a)(ia) holding that these charges represent mere reimbursement without appreciating the fact that these payments were made for rendering business auxiliary services th