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MANMOHAN, MANMEET PRITAM SINGH ARORA
Blackstone Capital Partners (Singapore) Vi Fdi Three Pte. Ltd. – Appellant
Versus
Assistant Commissioner Of Income Tax, Circle International Taxation 1(1)(2), Delhi – Respondent
JUDGMENT :
MANMOHAN, J.
ISSUE
1. The core issue that arises for consideration in the present writ petition is whether the respondent-revenue can go behind the tax residency certificate issued by the other tax jurisdiction and issue re-assessment notice under Section 147 of the Income Tax Act, 1961 (for short ‘the Act’) to determine issues of residence status, treaty eligibility and legal ownership.
FACTS
2. The relevant facts of the present case are that during the Assessment Year 2014-15, the petitioner-Blackstone Capital Partners (Singapore) VI FDI Three Pte. Ltd. acquired equity shares of Agile Electric Sub Assembly Private Limited, a Company incorporated in India (“Agile”) in two tranches, i.e. on 16th August, 2013 and 31st October, 2013.
3. During the year under consideration, i.e. Assessment Year 2016-17, the petitioner sold all the equity shares of Agile to Igarashi Electric Works Limited (“Igarashi”) and other parties on 30th July, 2015.
4. The petitioner electronically filed its return
Foreign company's LTCG on listed shares with STT exempt u/s 10(38) as s.115JB inapplicable per Explanation 4 if no PE; CIT revision u/s 263 invalid without twin conditions of error and prejudice afte....
Point of Law : Sufficiency of the evidence or material is not open to scrutiny by the Court but the existence of the belief is the sine qua non for a valid exercise of power.
At the time of recording the reason for satisfaction of AO, there should be prima facie some material on the basis of which, the department could reopen the case. The sufficiency or correctness of th....
Point of law: It is no doubt true that the Court cannot go into the sufficiency or adequacy of the material and substitute its own opinion for that of the Income Tax Officer on the point as to whethe....
Information furnished at the time of original assessment, when by subsequent information received from the Principal Director (Investigation), itself found to be controverted, the objection to the no....
Reopening of assessment under the Income Tax Act requires fresh tangible material; mere change of opinion is insufficient for valid reassessment.
The court established that a foreign company's reassessment is void if initiated without jurisdiction, especially when the company is dissolved prior to notice issuance, negating assessment validity ....
Reopening of assessment under the Income Tax Act after four years is impermissible without failure to disclose material facts; mere change of opinion does not justify such action.
The Assessing Officer must independently verify information before reopening assessments; reliance on third-party information without application of mind invalidates the reopening process.
The main legal point established is that the Assessing Officer's belief for the reassessment of income under section 148 of the Income Tax Act is based on subjective satisfaction and the existence of....
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