Principal Commissioner Vs M/S Goldman Sachs Service Pvt. Ltd. — Income Tax | Karnataka HC (2025)

Principal Commissioner Vs M/S Goldman Sachs Service Pvt. Ltd. — Income Tax | Karnataka HC (2025)

What the court decided

AI extract

Outcome

Dismissed

Issue for consideration

Whether the substantial questions of law raised by the appellants-Revenue survive for consideration, given the Coordinate Benches' answers that the technical services provided by the assessee were reimbursements falling within the employer-employee relationship (per Abbey Business Services India (P) Ltd. and Flipkart Internet Pvt. Ltd.).

Court's answer

Following the Co-ordinate Bench's order dated 03.09.2025 in ITA Nos.121/2024 and connected matters, by which the substantial questions of law were held to be answered by Abbey Business Services India (P) Ltd. and Flipkart Internet Pvt. Ltd. (technical services being reimbursements within the employer-employee relationship), this Court held that the questions raised in the present appeal likewise stood covered and dismissed the Revenue's appeal for AY 2013-14.

Detailed headnote1 paragraphs

Income Tax Appeal (ITA No. 122 of 2024, AY 2013-14) under Sec. 260-A of the Income Tax Act 1961 by the Principal Commissioner and Deputy Commissioner of Income Tax (International Taxation), Bangalore, against the Income Tax Appellate Tribunal's appellate order dated 29.04.2022 in IT(TP)A No. 364/Bang/2020 (part of the Tribunal's common order dated 29.04.2022 in ITA Nos.362 to 369 and 338 to 345/Bang/2020). Following the Co-ordinate Bench's order dated 03.09.2025 in ITA Nos.121/2024 and connected matters - which answered the Revenue's questions relying on Director of Income Tax (International Taxation) vs. Abbey Business Services India (P) Ltd., (2020) 122 taxmann.com 174, and Deputy Commissioner of Income Tax (International Taxation) and others vs. M/s. Flipkart Internet Pvt. Ltd., (2025) SCC OnLine Kar 16629, holding the technical services provided by the assessee to be reimbursements falling within the employer-employee relationship - the Bench (B M Shyam Prasad & T.M. Nadaf JJ.; oral judgment per B M Shyam Prasad J.) held that the substantial questions of law raised did not survive and dismissed the appeal on 29.10.2025.

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NC: 2025:KHC:43161-DB ITA No. 122 of 2024

HC-KAR

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 29^TH DAY OF OCTOBER, 2025

PRESENT

THE HON'BLE MR. JUSTICE B M SHYAM PRASAD

AND

THE HON'BLE MR. JUSTICE T.M.NADAF INCOME TAX APPEAL NO. 122 OF 2024

BETWEEN:

PRINCIPAL COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION) KORAMANGALA, BANGALORE.

THE DEPUTY COMMISSIONER OF INCOME TAX INTERNATIONAL TAXATION , CIRCLE 1 (1), KORAMANGALA BANGALORE.

Digitally signed by MADHUSHREE H

Location: High Court of Karnataka

…APPELLANTS

(BY SRI. SUSHAL TIWARI., ADVOCATE A/W SRI. E.I. SANMATHI., ADVOCATE)

AND:

M/S GOLDMAN SACHS SERVICE PVT LTD WING A WING B AND GROUND FLOOR TO 6^TH FLOOR WING C HELIOS BUSINESS PARK 150 OUTER RING KADUBEESANAHALLI

2 - NC: 2025:KHC:43161-DB ITA No. 122 of 2024

HC-KAR

BANGALORE -560103 REP BY ITS DIRECTOR.

…RESPONDENT

(BY SRI. TANMAYEE RAJKUMAR.,ADVOCATE)

THIS INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 29.04.2022 PASSED IN IT(TP)A NO. 364/BANG/2020 FOR THE ASSESSMENT YEAR 201314.PRAYING TO SET ASIDE THE APPELLATE ORDER DATED 29.04.2022 PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, A BENCH, BANGALORE, AS SOUGHT FOR, IN THE RESPONDENT ASSESSEES CASE, IN APPEAL PROCEEDINGS IN IT(TP)A NO. 364/BANG/2020 FOR A.Y 2013-14 (ANNEXURE A).

THIS APPEAL, COMING ON FOR ORDERS, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD and HON'BLE MR. JUSTICE T.M.NADAF

3 - NC: 2025:KHC:43161-DB ITA No. 122 of 2024

HC-KAR

ORAL JUDGMENT

(PER: HON'BLE MR. JUSTICE B M SHYAM PRASAD)

This appeal is as against the Tribunal's common order dated 29.04.2022 in ITA Nos.362 to 369 and 338 to 345/Bang/2020 for the assessment years 2011-12 to 2014-15 & 2015-16 to 2018-19. This appeal is relevant to the assessment year 201314. A Co-ordinate Bench of this Court has disposed of the appeals relevant to the assessment years in ITA Nos.121/2024 and connected matters by the order dated 03.09.2025, and the Co-ordinate Bench's order in its material part reads as under:

"On hearing learned counsel for the appellants-Revenue, we are of the considered view that the questions raised by the appellants-revenue are answered by the Coordinate Benches of this Court in the case of Director of Income Tax (International Taxation) vs. Abbey Business Services India (P) Ltd., [(2020 122 taxmann.com 174] and in the case of Deputy Commissioner of Income Tax (International Taxation) and others vs. M/s. Flipkart Internet Pvt. Ltd., [(2025) SCC OnLine

4 - NC: 2025:KHC:43161-DB ITA No. 122 of 2024

HC-KAR

Kar 16629] . The Coordinate Benches after considering the clauses and the contentions raised by the appellants -Revenue has held that, such technical services provided by the assessee are in the nature of reimbursement which falls within the employer and employee relationship. Thus, we are of the considered opinion that the substantial questions of law raised in these appeals would no more survive for consideration."

In the light of the afore, this appeal also stands

dismissed.

Sd/(B M SHYAM PRASAD) JUDGE

Sd/(T.M.NADAF) JUDGE

SA ct:sr