2017 (6) TMI 85

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....t ('the Act') seeking to re-open the assessment for the Assessment Year ('AY') 2007-08 be quashed. 2. It must be noted at the outset that when this writ petition was listed on 26th May, 2015, while directing notice to be issued in the petition, an interim order was passed staying the further proceedings pursuant to the aforementioned notice dated 26th March, 2014. 3. The return as originally filed by the Petitioner (hereafter 'Assessee'), a US based corporation, for AY 2007-08 was picked up for scrutiny. A reference was made by the Assessing Officer (AO) to the Transfer Pricing Officer (TPO) after the receipt of whose report a draft assessment order was passed under Section 144 C of the Act on 31st December 2010. The reference....

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....e abovementioned incoming shared service charge. 6. In the reasons it was recorded that the Assessee herein had failed to offer for taxation the corresponding amount either separately or as royalty income in the form of 'incoming shares service charges paid by 'OIPL to OSC', in its return of income filed for the AY 2007-2008. 7. The reasons further stated that the Assessee had failed to disclose/include to offer for tax an amount of Rs. 2,92,63,854/- either separately or as excess royalty income which had been paid and booked as an expense by OIPL to OSC on account of 'purchase of master copy' in its return of income filed for AY 2007-2008. 8. In the objections filed against the assumption of jurisdiction under Sect....

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....07 in case of OIPL, the DRP by an order dated 16th August, 2013 disagreed with the draft assessment order of the AO. He accordingly submitted that the assumption of jurisdiction under Section 147 of the Act was bad in law as it suffered from non-application of mind by the AO to the material available on record. There was no fresh tangible material for invoking Section 147 of the Act. Further, there was no failure of the Assessee/Petitioner to disclose fully and truly all material facts. 12. Apart from raising the preliminary objection as regards the maintainability of the present writ petition on the ground that the Assessee could go in for the regular assessment and raise all these objections, Mr Dileep Shivpuri, learned Senior Standing....