Tata Communications Limited Vs DCIT (Bombay High Court)
Bombay High Court while quashing reassessment proceedings under section 148 of the Income Tax Act held that in the absence of any fresh tangible material, reassessment proceedings amounts to change of opinion for reviewing the earlier order, which is not permissible under the Act.
Facts- The petitioner filed its return of income u/s 139(1) of the Act on 24 November 2014 which was subsequently revised on two occasions namely on 17 March 2016 and 25 March 2016 which was further modified on 29 November 2016.
The revised return of income was selected for scrutiny assessment and after obtaining the Transfer Pricing Officer’s (the TPO) report, a draft assessment order was passed on 28 December 2017. In the draft assessment order, the TPO made a transfer pricing adjustment of 187,556,48,429/- which included adjustment on account of “corporate guarantee fees” issued on behalf of AE’s amounting to Rs.120,80,22,974/-. On 25 October 2018, an order u/s. 143(3) r.w.s. 144-C(13) of the Act was passed wherein pursuant to the directions of the DRP, the corporate guarantee fees proposed by the TPO at Rs.120,80,22,974/- was confirmed. The said final assessment order dated 25 October 2018 is challenged by the petitioner by filing an appeal to the Tribunal on 14 December 2018. The appeal filed before the Tribunal is still pending as of today.
