IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO.751 OF 2010 (Arising out of S.L.P. (C) No.1455 of 2009)

Commissioner of Income Tax                 ...Appellant(s)

Versus

M/s. British Airways                    ...Respondent(s)

W I T H

Civil  Appeal  No.752/2010  @  S.L.P.  (C)  No.1456/2009,  Civil  Appeal  No.753/2010  @  S.L.P.  (C)  No.4781/2009,  Civil  Appeal  No.754/2010  @  S.L.P.  (C)  No.4774/2009,  Civil  Appeal  No.755/2010  @  S.L.P.  (C)  No.7491/2009,  Civil  Appeal  No.756/2010  @  S.L.P.  (C)  No.8162/2009,  Civil  Appeal  No.757/2010  @  S.L.P.  (C)  No.8177/2009,  Civil  Appeal  No.758/2010  @  S.L.P.  (C)  No.8146/2009,  Civil  Appeal  No.759/2010  @  S.L.P.  (C)  No.8661/2009,  Civil  Appeal  No.760/2010  @  S.L.P.  (C)  No.7745/2009,  Civil  Appeal  No.761/2010  @  S.L.P.  (C)  No.6415/2009,  Civil  Appeal  No.762/2010  @  S.L.P.  (C)  No.10470/2009,  Civil  Appeal  No.763/2010  @  S.L.P.  (C)  No.9267/2009,  Civil  Appeal  No.764/2010  @  S.L.P.  (C)  No.6389/2009,  Civil  Appeal  No.765/2010  @  S.L.P.  (C)  No.2808/2009,  Civil  Appeal  No.766/2010  @  S.L.P.  (C)  No.9271/2009,  Civil  Appeal  No.785/2010  @  S.L.P.  (C)  No.6292/2009,  Civil  Appeal  No.774/2010  @  S.L.P.  (C)  No.3738/2009,  Civil  Appeal  No.776/2010  @  S.L.P.  (C)  No.5145/2009  and  Civil Appeal No.778/2010 @ S.L.P. (C) No.7545/2009.

O  R  D  E  R

Delay condoned.

Leave granted.

The following  substantial question  of  law arises

...2/-

- 2 -  

for consideration in this batch of civil appeals:

“Whether the Income Tax Appellate Tribunal  was  correct  in  law  in  holding  that  the  orders  passed  under  Sections  201(1)  and  201(1A)  of  the  Income  Tax  Act,  1961  are  invalid  and  barred  by  time  having  been  passed beyond a reasonable period.”

Having heard learned counsel on both sides, we are  

of the view that, on the facts and circumstances of these  

cases, the question on the point of limitation formulated  

by the Income Tax Appellate Tribunal in the present cases  

need not be gone into for the simple reason that, at the  

relevant time, there was a debate on the question as to  

whether TDS was deductible under the Income Tax Act, 1961,  

on  foreign  salary  payment  as  a  component  of  the  total  

salary  paid  to  an  expatriate  working  in  India?   This  

controversy came to an end vide judgement of this Court in  

the case of Commissioner of Income Tax vs. Eli Lilly & Co.  

(India) Pvt. Ltd., reported in [2009] 312 I.T.R. 225.  The  

question on limitation has become academic in these cases  

because, even assuming that the Department is right on the  

issue of limitation still the question would arise whether  

on  such  debatable  points,  the  assessee(s)  could  be  

declared as assessee(s) in default under Section 192 read  

with Section 201 of the Income Tax Act, 1961.  Further, we  

are  informed  that  the  assessee(s)  have  paid  the  

differential tax.   They have  paid the  interest and they  

...3/-

- 3 -  

further  undertake  not  to  claim  refund  for  the  amounts  

paid. Before concluding, we may also state that, in  Eli  

Lilly & Co. (India) Pvt. Ltd. (supra)  vide Paragraph 21,  

this Court has clarified that the law laid down in the  

said case was only applicable to the provisions of Section  

192 of the Income Tax Act, 1961.

Leaving the question of law open on limitation,  

these civil appeals filed by the Department are disposed  

of with no order as to costs.

......................J.            [S.H. KAPADIA]

......................J.            [H.L. DATTU]

New Delhi, January 20, 2010.