GE Grid (Switzerland) GMBH Vs ACIT (Delhi High Court)
Other years cannot be extrapolated on the basis of survey conducted in particular year: Delhi HC
Delhi High Court held that reassessment under section 148 of the Income Tax Act entirely based on course of survey not sustainable and liable to be quashed. Further, survey in particular year cannot be extrapolated to other years.
Facts- This batch of writ petitions impugn the reassessment action initiated by the respondents in the purported exercise of powers conferred by Section 148 of the Income Tax Act, 1961 in respect of Assessment Years 2013–14 to 2017–18.
The reassessment action was commenced prior to the introduction of the new statutory scheme which came to hold the field post the promulgation of Finance Act, 2021. In view of the above, while the notice under Section 148 came to be issued on 17 March 2021, the reasons in support of the formation of the requisite opinion came to be provided to the petitioner later. For purposes of brevity, we propose to notice the reasons as recorded for invocation of Section 148 with respect to AY 2013-14.
AO as per the reasons provided to the writ petitioner had taken note of the fact that the assessee was a company incorporated and registered under the laws of Switzerland and a non-resident in the concerned financial year. It noted that it was engaged in the business of supplying equipments and spares to Indian entities. The petitioner is stated to have not filed any returns of income for AY 201314. It was thus alleged that although the petitioner was deriving profits from the supply of equipment and spares to Indian companies and entities, it had failed to acknowledge the said income asserting that it had no Permanent Establishment in India.
