2022 (11) TMI 1512 - HC - Income Tax

Reopening of assessment - Petitioners states that the receipts from providing licensed material and ancillary services do not qualify either as royalty or fees for technical services in terms of Article 12 of the India-US DTAA and, therefore, there is no income escaping assessment warranting exercise of jurisdiction u/s 148 - Respondent, on instructions stated that they have no objection if the impugned orders in all the three matters are set aside and the matters are remanded back to the AO to pass fresh orders u/s 148A(d) HELD THAT - Keeping in view, this Court sets aside the impugned orders passed u/s 148A(d) of the Act and impugned notices issued u/s 148 of the Act for the Assessment Years 2016-17 and 2017-18 with liberty to the Petitioner to file fresh replies within four weeks with the AO as well as with a direction to the Assessing Officers to deal with the contentions and submissions advanced by the Petitioners and to pass fresh orders under Section 148A(d) of the Act within eight weeks thereafter in accordance with law. Petitioners are directed to cooperate with the Assessing Officer in passing the proposed order under Section 148A(d)

Summary

The High Court allowed exemptions in the mentioned applications and set aside the impugned orders under Section 148A(d) of the Income Tax Act. The matters were remanded back to the Assessing Officers for fresh orders, with the Petitioner given four weeks to file replies and the Assessing Officers directed to pass new orders within eight weeks.