Allowing the appeal of the assessee the Court held that, The AO is not entitled to issue a reopening notice only on the basis that the foreign company has a permanent establishment (PE) in India if the transactions in respect of which it is alleged that there has been an escapement of income had already been disclosed by the Indian subsidiary and found by the Transfer Pricing Officer (TPO) to be at arm’s length . ( CA.No. 2833 of 2018, dt. 14.03.2018)( AY. 2004 -05)
Honda Motor Co. Ltd. v. ADCIT ( 2018) 164 DTR 97/ 301 CTR 601/255 Taxman 72 (SC) Editorial: Review petition of revenue is dismissed ACIT v. Honda Motor Co. Ltd ( 2019) 265 Taxman 542/ 311 CTR 259/ 183 DTR 24 (SC) / Order in Principal Officer , LG.Electronics Inc v. Asstt. DIT( IT) ( 2014) 271 CTR 663/ 108 DTR 201 ( All ) (HC) was set a side
S. 147:Reassessment- Transfer pricing – Permanent establishment – Income had already been disclosed by the Indian subsidiary and found by the Transfer Pricing Officer (TPO) to be at arm’s length. Reassessment was held to be bad in law .[ S. 92C, 148 ]