| |
| The Tax Publishers2020 TaxPub(DT) 4748 (Del-Trib) INCOME TAX ACT, 1961
Section 147
Once international transaction, if any, had been found to be at arm's length in the TP proceedings carried out in the case of alleged PE, then entire question of PE became academic in nature and there was no merit in reassessment proceedings initiated under section 147 merely on allegation that assessee had PE in India.
|
Reassessment - Reason to believe - Non-resident having PE in India liable for further attribution of profit - International transaction between assessee and PE found to be at arm's length
AO reopened assessment on the ground that non-resident assessee had PE in India and further profit was thus attributable. Assessee contended that international transaction between assessee and alleged PE were found to be as at arm's length by TPO. Held: Once international transaction, if any, had been found to be at arm's length in the TP proceedings carried out in the case of alleged PE then entire question of PE became academic in nature and there was no merit in reassessment proceedings initiated under section 147 merely on allegation that assessee had PE in India.
Supported by:Honda Motors Co. Ltd. v. ADIT (2018) 922 taxmann.com 353 (SC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2004-05 to 2006-07
 SUBSCRIBE FOR FULL CONTENT
|