Ericsson India Pvt. Ltd. vs. DCIT

Parties Involved

Facts Summary

This appeal by Ericsson India Pvt. Ltd. for the assessment year 2015-16 is against the order of the Commissioner of Income Tax (Appeals) [CIT(A)], Delhi, dated 25.03.2022. The appeal involves proceedings under section 143(3) read with section 144C of the Income-tax Act, 1961. The assessee raised several grounds of appeal, including the disallowance of deductions, the application of the 'most favoured nation clause' under the India-Sweden DTAA, and the non-allowance of certain cess deductions and foreign tax credits. The tribunal heard both parties and perused the case file.…

Legal Issues

• 1. Validity of the order passed by the CIT(A) confirming AO's action
• 2. Allowance of deduction for provision created on account of litigation
• 3. Application of 5% withholding rate on dividend paid to a Swedish company under the MFN clause
• 4. Allowance of deduction for Education Cess and Secondary Higher Education Cess
• 5. Allowance of cess paid on DDT as deduction
• 6. Allowance of complete credit of Tax Deducted at Source

Judgment Outcome

Decided in favour of Revenue.

Precedents Relied Upon

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