In course of a survey carried out at the premises of assessee’s Indian subsidiary, a non-resident company, AO found that the subsidiary formed assessee’s PE in India. Assessment of non-resident assessee was reopened. Subsequently, DRP recorded a finding that there was no PE of assessee in India. AO passed an order dropping the reassessment proceedings. Supreme Court set aside the judgement of the High Court which upheld the validity of the reassessment proceedings. (SLP Nos. 19655 to 19657, 19659 to 19661, 19667 to 19669, 19671 to 19673 of 2017 dt. 23-11-2017) ( AY.2004-05 , 2005 -06).
Principal Officer, Honda Access Asia & Oceania Co. Ltd. v. ADIT (2018) 168 DTR 425 / 255 Taxman 77 / 304 CTR 108(SC) Principal Officer, Honda Access Asia & Oceania Co. Ltd. v. ADIT. (2018) 168 DTR 426/255 Taxman 77 (SC) Editorial: Principal Officer, Honda Access Asia & Oceania Co. Ltd. v. ADIT(IT) ( 2014) 271 CTR 663 / 108 DTR 201 /368 ITR 401/226 Taxman 204 (All)(HC) is set aside
S. 147 : Reassessment–Based on subsequent finding of DRP that there was no Permanent Establishment of the assessee in India– AO dropped reassessment proceedings–Order passed by High Court upholding validity of those proceedings was to be set aside. [S. 148]