https://www.taxtmi.com/caselaws?id=448027 The Delhi HC set aside reassessment notices u/s 148A(b) and 148 issued to foreign companies for investments in Indian subsidiaries. The court held that investment in shares of Indian subsidiaries constitutes capital account transactions, not income chargeable to tax. Despite Revenue's allegations of round-tripping, no evidence was provided. The court relied on established precedent that share investments cannot be treated as income and noted Revenue's action contravened CBDT instructions. The court emphasized that escapement of chargeable income remains a primary condition for invoking reassessment powers under Section 147, regardless of amended provisions. en-us Tue, 19 Dec 2023 00:00:00 +0530 Fri, 03 May 2024 11:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=448027 The Delhi HC set aside reassessment notices u/s 148A(b) and 148 issued to foreign companies for investments in Indian subsidiaries. The court held that investment in shares of Indian subsidiaries constitutes capital account transactions, not income chargeable to tax. Despite Revenue's allegations of round-tripping, no evidence was provided. The court relied on established precedent that share investments cannot be treated as income and noted Revenue's action contravened CBDT instructions. The court emphasized that escapement of chargeable income remains a primary condition for invoking reassessment powers under Section 147, regardless of amended provisions. Case-Laws Income Tax Tue, 19 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=448027