UCWeb Mobile Private Ltd. Vs Assessment Unit (Punjab and Haryana High Court)
Summary: The Punjab and Haryana High Court considered a petition challenging the final assessment order dated 15.12.2023 for Assessment Year 2021-22, passed under Section 143(3) read with Sections 144C(3) and 144B of the Income-tax Act, 1961. The petitioner also challenged the consequential demand notice under Section 156 and notice initiating penalty proceedings under Section 274 read with Section 270A.
The petitioner, a wholly owned subsidiary of UC Mobile New World Limited, British Virgin Islands, was engaged in distribution and re-selling of designated services of UCWeb Singapore Pte Ltd. in India. Following scrutiny, the Assessing Officer referred the petitioner’s international transactions to the Transfer Pricing Officer under Section 92CA(1). The TPO, by order dated 29.10.2023, ordered an addition of Rs. 60,09,84,289/- to the petitioner’s declared income. The Assessing Officer thereafter passed a draft assessment order dated 06.11.2023 under Section 144C(1).
The petitioner, being an “eligible assessee” under Section 144C(15)(b), filed objections to the draft assessment order before the Dispute Resolution Panel within the prescribed thirty-day period under Section 144C(2). However, the petitioner did not intimate the Assessing Officer about the filing of the objections. While the objections were pending before the DRP, the Assessing Officer passed the final assessment order dated 15.12.2023.
