Novo Nordisk India Private Limited Vs DCIT (Karnataka High Court)
Karnataka High Court held that assumption of jurisdiction under section 147 of the Income Tax Act untenable since mandatory requirement of section 149(1)(b) of the Income Tax Act not complied. Accordingly, writ petition allowed and notice u/s. 148 quashed.
Facts- The petitioner is a company incorporated under the laws of India and is a resident for the purposes of the Act. The case of the petitioner was selected for detailed scrutiny and notice u/s. 143(2) was issued on 23.10.2007, to which the petitioner filed requisite reply. Reference was made to TPO for determination of arm’s length price in respect of international transactions reported by the petitioner during the subject Assessment year. TPO passed a detailed order u/s. 92CA(3) of the Act accepting the arm’s length price reported by the petitioner in respect of its international transactions and concluded that no adjustment was required in respect of the same. Pursuant to which respondent No.1 passed order u/s 143(3) of the Act inter alia accepting the conclusions of the TPO.
It appears after lapse of close to six years from the end of relevant Assessment Year, by the impugned notice dated 28.3.2013 issued u/s. 148 of the Act respondent No.1 initiated re-assessment proceedings for the subject Assessment Year on the ground that the income of the petitioner for the relevant year had escaped assessment u/s. 147 of the Act. Being aggrieved, the present appeal is filed.
