LL Global Inc. Vs ACIT (ITAT Delhi)
₹50 Lakh Threshold Is Mandatory: ITAT Delhi Quashes Reassessment of Foreign Company as Time-Barred
Delhi ITAT (Bench ‘D’) quashed the reassessment proceedings initiated u/s 147 r.w.s. 148, holding them to be barred by limitation under the amended law. The Tribunal noted that the notices u/s 148 were issued beyond three years from the end of the relevant assessment years and that the alleged escapement of income was only ₹4.10 lakh and ₹3.18 lakh, far below the ₹50 lakh threshold mandated u/s 149(1)(b).
Relying on the Supreme Court decision in Rajeev Bansal (469 ITR 46), the ITAT held that in the absence of escapement exceeding ₹50 lakh, no notice could be issued after three years, rendering the assumption of jurisdiction invalid. Consequently, the reassessment proceedings for both years were quashed in limine, and all other grounds were left open as academic. Both appeals were allowed.
FULL TEXT OF THE ORDER OF ITAT DELHI
1. The Assessee LL Global Inc. (hereinafter referred to as ‘assessee) by filing the present appeal sought to set aside the impugned order dated 26.03.2024 for AY 2016-17 and 2017-18 passed by the Assessing Officer (AO) under section 147 r.w.s. 144C of the Income Tax Act, 1961 (for short ‘the Act’) inconsonance with the order passed by the Dispute Resolution Panel (DRP)-2, New Delhi dated 28.02.2024 u/s 144C(5). Identical issues are involved in both these appeals and hence they are taken up together and disposed of by this common order for the sake of convenience.
