2024 (1) TMI 278 - SCH - Income Tax

Reopening of assessment u/s 147 - Unexplained gain on sale of shares of company abroad - assessee claimed gains earned by it on sale of Agile shares were not taxable in India by virtue of Article 13(4) the Double Tax Avoidance Agreement entered into and subsisting between India and Singapore ( India-Singapore DTAA ) based on the Tax Residency Certificate ( TRC ) - Relevance of information from a third party - borrowed satisfaction - Beneficial ownership under DTAA - Companies to be incorporated initially with minimum paid up share capital - Live link between the material disclosed and the formation of belief - Reasons recorded cannot evolve or be allowed to grow with age and ingenuity - Limitation of benefit LOB clause - HC 2023 (2) TMI 35 - DELHI HIGH COURT this Court is of the view that no income chargeable to tax has escaped assessment in the present case - this Court has held that reopening of assessment based on the return of income must show 'reasons to believe' that income chargeable to tax has escaped assessment. Consequently, the impugned reassessment proceedings are without jurisdiction and the impugned Notice under Section 148 of the Act, impugned Reasons undated and the impugned Order and the subsequent draft Assessment Order u/s 144C are quashed. HELD THAT - Issue notice on the application seeking condonation of delay as well as on the Special Leave Petition. In the meantime, operation of the impugned order shall remain stayed.

Summary

The Supreme Court issued an order to issue notice on the application seeking condonation of delay and on the Special Leave Petition. The operation of the impugned order will remain stayed in the meantime.