Case Law Details
Angelantoni Test Technologies SRL Vs ACIT (Delhi High Court)
Introduction: The present series of writ petitions collectively seek to quash notices issued under Section 148A(b) and orders passed under Section 148A(d) of the Income Tax Act, 1961 (Act). Additionally, the petitioners challenge notices issued under Section 148 of the Act, along with all consequential actions. A pivotal aspect of the challenge revolves around the legality and constitutional validity of Explanation 1 to Section 148 of the Act.
Factual Overview: While a common legal question is at the core of these petitions, each case presents nuanced factual variations. One case, exemplified by M/s Angelantoni Test Technologies SRL Versus Assistant Commissioner of Income Tax, Circle Int Tax 1(1)(1) & Ors., involves a foreign company, resident in Italy, subscribing to shares in its wholly owned Indian subsidiary during the fiscal year 2018-19.
Legal Arguments and Counterarguments:
Nature of Transactions: Petitioners assert that the transactions in question are capital account transactions incapable of generating income. Respondents argue that notices under Section 148A(b) were issued as per the Risk Management Strategy formulated by the Central Board of Direct Taxes (“CBDT”).
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