DCIT Vs I Energizer Holdings Ltd. (ITAT Delhi)
Summary: The Income Tax Appellate Tribunal, Delhi Bench ‘D’, adjudicated Revenue’s appeal in ITA No. 4654/Del/2015 together with the assessee’s Cross Objection No. 397/Del/2025 for Assessment Year 2012-13. I Energizer Holdings Ltd. was a Mauritius based foreign company. A search and seizure operation under section 132 of the Income-tax Act, 1961 was conducted on the Focus Energy Group on 22.03.2012, during which documents pertaining to the assessee were found and seized. The matter was centralised with Central Circle-10, New Delhi, subsequently restructured as Central Circle-19.
A satisfaction note dated 18.11.2013 was recorded for invoking section 153C and notice under section 142(1) was issued. Following the assessment order for AY 2006-07, the Assessing Officer treated the assessee as having earned service income and assessed Rs.3,83,53,140/- on protective basis under section 144 by order dated 23.03.2014. The CIT(A) granted relief, against which Revenue appealed. Revenue’s grounds challenged, among other matters, the CIT(A)’s conclusion concerning the assessee’s residential status, the control and management of the assessee and overseas companies, the application of section 9(1), and deletion of the addition.
The assessee, through its Cross Objection, raised additional jurisdictional grounds contending that the assessment was contrary to section 144C, that the Assessing Officer had passed a final assessment order without first passing a draft assessment order, that jurisdictional requirements under sections 124 to 127 were not satisfied, and that no notice under section 153C had been issued. At the hearing, the assessee relied upon the Tribunal’s own earlier order dated 10.01.2024 for AYs 2008-09 to 2011-12, where final assessment orders passed without draft assessment orders had been held unsustainable. Reliance was also placed on SHL India (P.) Ltd., Rolland Enterprises Ltd., Sumitomo Corporation India (P) Ltd., Granda Services Pvt. Ltd., I-services India Pvt. Ltd. and Turner International India Pvt. Ltd., besides the other authorities referred to in the order. The Tribunal first examined the statutory framework of section 144C. It recorded that the assessee was a foreign company and therefore fell within the definition of “eligible assessee” under section 144C(15)(b)(ii).
