Delhi High Court - Orders
Capgemini Technology Services India ... vs Assistant Commissioner Of Income Tax ... on 26 May, 2023
Author: Rajiv Shakdher
Bench: Rajiv Shakdher
$~50
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 7398/2023 & CM Nos.28782-83/2023
CAPGEMINI TECHNOLOGY SERVICES INDIA LIMITED (AS
SUCCESSOR-IN-INTEREST OF ARICENT TECHNOLOGIES
(HOLDINGS) LTD) ..... Petitioner
Through: Mr Ajay Vohra, Sr Standing Counsel
with Mr Neeraj Jain, Mr Aniket D.
Agrawal, Mr Saksham Singhal and
Mr Abhisek Singhvi, Advs.
versus
ASSISTANT COMMISSIONER OF INCOME
TAX CIRCLE-1(1), NEW DELHI AND ORS. ..... Respondents
Through: Mr Zoheb Hossain, Sr Standing
Counsel with Mr Sanjeev Menon,
Standing Counsel.
CORAM:
HON'BLE MR. JUSTICE RAJIV SHAKDHER
HON'BLE MR. JUSTICE GIRISH KATHPALIA
ORDER
% 26.05.2023 [Physical Hearing/Hybrid Hearing (as per request)] CM No.28783/2023
1. Allowed, subject to the petitioner filing legible copies of the annexures, at least three days before the next date of hearing. W.P.(C) 7398/2023 & CM No.28782/2023 [Application filed on behalf of the petitioner seeking interim relief]
2. This writ petition concerns Assessment Year (AY) 2016-17.
W.P.(C) 7398/2023 page 1 of 4 This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 25/09/2023 at 08:46:17
3. Mr Ajay Vohra, learned senior counsel, who appears on behalf of the petitioner, points out that the reassessment proceeding which has been triggered by the Assessing Officer (AO), was based on the information received from his counterpart in Chandigarh, with regard to two transactions, amounting to Rs.86,21,602/- and Rs.1146,67,96,393/-.
4. Mr Vohra states that the petitioner was issued a notice dated 23.05.2022 under Section 148A(b) of the Income Tax Act [in short, "Act"], whereby the aforementioned allegation was made against the petitioner.
5. It is stated that in response to the said notice, two replies were filed by the petitioner. These replies are dated 07.06.2022 and 28.07.2022 [See Annexure „I‟ and Annexure „J‟ appended on pages 337 and 343 of the case file].
6. It is Mr Vohra‟s submission that there is no bifurcation of the amounts, which have been made the subject matter of the investigation. 6.1 It is also Mr Vohra‟s submission that the petitioner‟s case for the AY in issue was selected for scrutiny and referred to the Transfer Pricing Officer (TPO).
7. The TPO via order dated 24.10.2019 had proposed an upward adjustment of Rs.85,50,70,732/-. Accordingly, the AO had prepared a draft assessment order on 28.12.2019.
8. The petitioner had preferred objections against the draft assessment order, which were disposed of by the Dispute Resolution Panel (DRP) on 12.01.2021.
W.P.(C) 7398/2023 page 2 of 4 This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 25/09/2023 at 08:46:17
9. Importantly, insofar as the international transactions were concerned, „nil‟ adjustment was provided for.
10. Mr Vohra, thus, contends that the AO seems to have picked up the transactions which were the subject matter of scrutiny by the TPO and DRP, as also by the AO, in the earlier round. There was, according to Mr Vohra no fresh material available with the AO to trigger the reassessment proceeding.
11. Issue notice.
11.1 Mr Sanjeev Menon, learned standing counsel, accepts notice on behalf of the respondents/revenue.
12. Counter-affidavit will be filed within eight weeks. 12.1 Rejoinder thereto, if any, will be filed at least five days before the next date of hearing.
13. Although, we have issued notice in the writ petition, the AO will have liberty to continue with the reassessment proceeding. However, if an order is passed, which is adverse to the interests of the petitioner, the same shall not be given effect to till further directions of the Court.
14. Further, we make it clear that before the AO proceeds further, he will take into account the second response filed by the petitioner which is dated 28.07.2022.
15. In addition, thereto, in case the AO is of the view that a reassessment order needs to be passed in this particular case, he/she will provide the break-up of the transactions, which were the subject matter of the notice issued under Section 148A(b) of the Act.
W.P.(C) 7398/2023 page 3 of 4 This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 25/09/2023 at 08:46:18
16. Needless to add, before passing the reassessment order, the AO will accord an opportunity of personal hearing to the authorized representative of the petitioner.
17. List the matter on 08.11.2023.
18. Parties will act based on the digitally signed copy of the order.
RAJIV SHAKDHER, J GIRISH KATHPALIA, J MAY 26, 2023 aj Click here to check corrigendum, if any W.P.(C) 7398/2023 page 4 of 4 This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 25/09/2023 at 08:46:18