Shell India Markets Private Limited Vs Additional/Joint/ Deputy/ ACIT/ITO (Bombay High Court)
he Bombay High Court has ruled in favor of Shell India Markets Private Limited in a case against the Additional. Joint. Deputy. ACIT.ITO, declaring an assessment order illegal.
Shell India, a company involved in retailing petroleum products and supplying lubricants, challenged an assessment order dated September 30, 2021, issued under the Income Tax Act of 1961. The company argued that the order was in violation of the Act’s provisions.
The case originated from Shell India’s original income tax return filed on November 30, 2016, for the assessment year 2016-17. The tax authorities selected the case for scrutiny, issuing a notice on September 19, 2017. A draft assessment order, proposing additions of Rs. 375,65,17,639/-, was issued on December 26, 2019, following an order by the Transfer Pricing Officer (TPO) on October 29, 2019.
Shell India filed objections with the Dispute Resolution Panel (DRP) on January 24, 2020, challenging the draft assessment order. The DRP was required to issue directions within nine months, or by September 30, 2020.
However, the Government of India issued a gazette notification on September 29, 2020, enacting The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020. This act extended the DRP’s deadline to March 31, 2021. The DRP issued its directions on March 20, 2021.
