9911796707
TMI Blog2023 (6) TMI 741X X X X Extracts X X X X X X X X Extracts X X X X ..... ent to the assessee- which is that it would indulge in tax evasion inter alia, by treaty shopping, without any material or information of such kind being put to it. We are of the view, that unless relevant information, if any, which is available with the AO, is put to the petitioner, which leads to a conclusion that the TRC obtained by the petitioner is not legally valid and/or viable, the impugned order passed by the AO cannot be sustained. Without expressing any final view in the matter, in our opinion, the best way forward would be to set aside the order, and direct the AO to confront the petitioner with material or information, which according to her, would have her arrive at a conclusion that the TRC on which the petitioner seeks ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... und of litigation for the petitioner. In the earlier round, the petitioner had filed a writ action i.e., W.P.(C) No. 12600/2022, whereby challenge was laid to the order dated 28.07.2022 as well as the consequent notice dated 29.07.2022. 5. In a nutshell, the petitioner had approached this Court on the earlier occasion, as the Assessing Officer (AO) had passed the order and notice impugned in the said writ action, without regard to the Tax Residency Certificate (TRC) issued in its favour. The transaction that the AO has sought to bring under the purview of the Income Tax Act, 1961 [in short, Act ] concerns the sale of shares by the petitioner of an Indian company, going by the name Bharti Infotel Pvt. Ltd. 6. The petitioner has so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the writ petition. 11.1 The directions that we issued are contained in paragraph 11 of the judgment dated 08.12.2022. 12. It is pursuant to the said judgment dated 08.12.2022, that the impugned order dated 04.05.2023 has been passed by the AO. 13. The AO via the said order has, inter alia, made the following observations, which, in a sense, gives a clue as to the rationale employed by her in reaching her conclusion in the matter 3.2 Hence, if the intent of the assessee is to indulge in tax evasion through various means like treaty shopping etc., it can not be allowed benefits of treaty. Hence, mere TRC is not the absolute proof of 'residential status' of an assessee. Further, at this stage of assessment proceedings, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing any final view in the matter, in our opinion, the best way forward would be to set aside the order, and direct the AO to confront the petitioner with material or information, which according to her, would have her arrive at a conclusion that the TRC on which the petitioner seeks to place reliance deserves to be rejected. 18. Mr Rai says, that the AO, who has called for the relevant information, will furnish the same to the petitioner, as soon as the same is made available. 19. Having regard to the statement made by Mr Rai, as indicated above, we are inclined to set aside the impugned order dated 04.05.2023. 20. It is ordered accordingly. 21. Liberty is, however, given to the AO, to take next steps in the matter, albeit, in ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
