The Karnataka High Court has quashed an order of the Income Tax Appellate Tribunal (ITAT) implementing royalty taxation on Google India Private Limited (Google) for Adwords software at the floor of violation of concepts of natural justice (Google India Private Limited v. Commissioner of Income Tax). A Division Bench of Justices Satish Chandra Sharma alongside S Vishwajith Shetty allowed the enchantment filed through the organisation and additionally directed the events to seem earlier than the Tribunal on May 3, 2021, for clean listening to.
What the Court held:
On the fabric relied upon through the ITAT in passing order, the Court opined that the order violated ideas of natural justice and truthful play because the appellant becomes now no longer afforded a possibility to rebut such clean proof.
Further, it stated that the information of the fabric has additionally now no longer been pondered withinside the order handed through the ITAT.
“Therefore, this Court believes that as there may be a contravention of ideas of natural justice and truthful play, the problem merits to be remanded lower back to the Tribunal for listening to it afresh according to with regulation.”
With those observations, the Court allowed the enchantment, and the order handed through the Tribunal is ready apart. The Court, accordingly, remanded the lower back count number to the Tribunal for clean adjudication according to with regulation. It additionally directed that the events will seem earlier than the Tribunal on May 3, 2021, and inside a length of 15 days the appellant in addition to the Revenue will be loose to document the files/extra files in aid in their contentions.