ACIT & Ors Vs General Electrict (Switzerland) Gmbh (Supreme Court of India)
The Supreme Court condoned the delay and, after hearing the petitioner’s counsel and examining the material on record, found no sufficient ground to interfere with the order passed by the High Court. Accordingly, the Court declined to disturb the impugned decision.
Read HC Judgment in this case: Reassessment Notices Quashed Due to Lack of Tangible Material for PE Allegation
The matter relates to reassessment notices issued under Section 148 of the Income Tax Act, 1961 for Assessment Years 2013–14 to 2017–18 to multiple non-resident entities forming part of a global power business group. These entities, incorporated in various jurisdictions, were engaged in activities such as manufacturing, supply of power equipment, and related services. Some had declared income in the nature of Fees for Technical Services (FTS) and filed returns, while others claimed no taxable income in India for certain years and did not file returns.
The Assessing Officer initiated reassessment proceedings based on reasons recorded, primarily relying on a survey conducted in June 2019 at the premises of Indian group entities. The AO formed a belief that the petitioners had a Permanent Establishment (PE) in India, including Dependent Agent PE and Fixed Place PE, and that income attributable to such PE had escaped assessment. It was also noted that certain supplies were made to Indian entities without tax deduction at source and were allegedly not declared in India.
