Supreme Court refused to condone 431 Days Delay in filing Customs Appeal

The Delhi High Court has upheld an exception under Section 40(a)(i) of the Income Tax Act in favor of Mitsubishi Corporation. The case involved a disallowance of payments made by the company to its non-resident group companies. The Assessing Officer argued that these payments were taxable in India and thus should be disallowed. The High Court, however, ruled in favor of Mitsubishi, applying the non-discrimination clause of the Double Taxation Avoidance Agreement (DTAA) between India and Japan. The court held that since the payments would have been deductible if made to a resident entity, the disallowance was in violation of the DTAA.