Appellate Tribunal upholds deletion of interest for Microsoft and MOL for AY 2012-13 based on DRP directions.

The Appellate Tribunal dismissed the Revenue's appeals against the deletion of interest u/s 234B for Microsoft Regional Sales Corporation and MOL Corporation for Assessment Year 2012-13. The Tribunal upheld the deletion based on the DRP's directions, which were in line with the decision of the Hon'ble Jurisdictional High Court. The Revenue's arguments supporting the Assessing Officer's findings were rejected, leading to the dismissal of both appeals in favor of the assessee.

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Issues:
Two separate appeals by the Revenue against orders of the Assessing Officer regarding deletion of interest u/s 234B of the Income-tax Act, 1961 for Microsoft Regional Sales Corporation and MOL Corporation for Assessment Year 2012-13.

Analysis:
The Appellate Tribunal, ITAT Delhi, comprising Shri N.K. Billaiya, Accountant Member, and Ms. Astha Chandra, Judicial Member, heard two separate appeals by the Revenue against orders of the Assessing Officer dated 19.02.2016 pertaining to Microsoft Regional Sales Corporation and MOL Corporation for Assessment Year 2012-13. The common grievance in both appeals was the deletion of interest u/s 234B of the Act as directed by the Dispute Resolution Panel (DRP). The Tribunal decided to hear and dispose of both appeals together due to common underlying facts. The Revenue strongly supported the Assessing Officer's findings, while the counsel for the assessee relied on the DRP's directions.

Upon careful review of the authorities' orders, the Tribunal noted that the DRP had deleted the interest u/s 234B based on the decision of the Hon'ble Jurisdictional High Court of Delhi in the case of GE Packaged Power 373 ITR 65, following the precedent set in the case of Agence France Press 2015-TII-14-HC-DEL-Intl. The Assessing Officer accepted the deletion following DRP's directions, but the matter was under consideration by the Hon'ble Supreme Court, leading to the Revenue's appeals.

Given that the DRP had relied on the decision of the Hon'ble Jurisdictional High Court, the Tribunal found no error or justification to interfere with the DRP's findings. Consequently, both appeals of the Revenue in ITA Nos. 2096 & 2097/DEL/2016 were dismissed. The order was pronounced in open court on 02.02.2022.

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