Assessee, a foreign company, subscribed shares by making forward inward remittance in its wholly owned Indian subsidiary. Assessee did not file a return in the relevant year on grounds that it had not earned any income in India. Assessing Officer held that investment in shares of another entity were income which were chargeable to tax and had escaped assessment hence  issued notices under section 148A(b) in terms of Explanation 1 to section 148 and thereafter passed order under section 148A(d). On writ the Court held that investment in shares in an Indian subsidiary could not be treated as income as same was in nature of capital account transaction and would not give rise to any income. Therefore, orders passed under section 148A (d) and notices issued under section 148 were to be set aside. Court also clarified that if any material became subsequently available with the Revenue, it shall be open to it to take proceedings in accordance with law.  (AY. 2019-20)