2024 (6) TMI 277

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.... petitioner impugns the reassessment action initiated in terms of notice issued under Section 148 of the Income Tax Act, 1961 ["Act"] dated 28 March 2024. As would be evident from the record, a notice referable to Section 148A (b) of the Act came to be issued against the petitioner on 24 February 2024. The same was based on material gleaned from the Non-Filing Monitoring System of the Department and pertaining to Assessment Year ["AY"] 2020-21. 2. The respondents took the position that on the basis of the information appearing on the Insight Portal it appears that various payments were made to the writ petitioner and in respect of which tax had been deducted at source by various entities. It, accordingly, alleged that income amounting to I....

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.... India. Reliance in this regard is placed upon the below mentioned judgements of the Hon'ble Apex Court: I. Director of Income-tax (International Taxation) vs. Organ Stanley & Co. reported as [2007] 162 Taxman 165 (SC) II. Formula One World Championship Ltd. vs. Commissioner of Income-tax, (International Taxation)-3, Delhi [2017] 80 taxmann.com 347 (SC) III. Ishikawajma-Harima Heavy Industries Ltd. vs. Director of Income-tax reported as [2007] 158 Taxman 259 (SC) IV. Hyundai Heavy Industries Co. Ltd. vs. Director of Income-tax (International Taxation) reported as [2007] 161 Taxman 191 (SC) 4.2 From the bare perusal of the captioned judgment, you will appreciate that the Hon'ble Apex Court has been consistent in its stand that the ....

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.... Further, whether the assessee has a Permanent Establishment or not during the year under consideration is a question of fact and law and hence need to be verified. Further, the assessee has claimed that the income is exempt but since the assessee has not been filed ITR thus income neither be claimed on exempt nor justified to be so. The assessee was required to file the ITR, declaring the income and justifying the claim that the income is exempt for India. Hence, prime facia it appears that assessee has not substantiated the non taxability of the receipts received by it." 7. We find ourselves unable to sustain the initiation of reassessment action bearing in mind the evident failure on the part of the respondent to deal with the fun....