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2019 (10) TMI 1131 - HC - Income TaxRemedy available under Section 144C(2)(b) - dispute recommended to competent forum - mechanism to resolve the dispute through the Dispute Resolution Panel - TP Adjustment - Income accrued in India - petitioner is a Permanent Establishment of EOS Germany in India as per the Act and India-Germany Double Tax Avoidance Agreement ('DTAA') - Petitioner Company operates as an Indian Branch office of EOS GmbH Electro Optical Systems, Germany ('Head Office') - Whether petitioner merely acts as a liaison office between the Head Office and its customers in India? - HELD THAT:- It is evident that so many factual disputes, which go to the root of the matter, viz., the nature of activities carried on by the petitioner, exist between the parties. Unless and until those factual disputes are settled by appreciation of factual aspects of the matter by a fact finding authority, the question as to whether the income at the hands of the petitioner is to be treated as income earned in India and liable for tax, as claimed by the Revenue, or as the income to be determined by adopting ALP method, as claimed by the petitioner, cannot be considered by this Court and decided at this stage, since the order impugned is only a draft assessment order and the petitioner is only called upon to make objection against the same, if they are not agreeable. Therefore, the disputes raised by the petitioner herein are to be considered by the competent forum provided under the statute itself and resolved accordingly. It is not any empty formality but an effective mechanism. Therefore, to settle such dispute, necessarily the petitioner has to go before the Dispute Resolution Panel as provided under Section 144C of the Income Tax Act, 1961. When the statute provides a mechanism for resolving the dispute between the parties and before which forum, the assessee is entitled to file objections of any nature and when such forum is also vested with power to issue directions to the Assessing Officer for completion of the assessment, this Court is of the view that it is not correct to contend as if the scope and ambit of such forum is with limited purpose and jurisdiction on certain issues. If the above contention of the petitioner is to be accepted that the issue raised in this writ petition cannot be considered by the Dispute Resolution Panel, I am of the view that the very object of providing such mechanism to resolve the dispute through the Dispute Resolution Panel would become redundant. It is well settled that in fiscal matters, the parties cannot directly approach this Court and file writ petition, when an effective alternative remedy is available under the Statute. In other words, the parties cannot attempt to short circuit the whole process, by filing a writ petition straight away and inviting this Court to either assume the role of the Appellate Authority or the Revisional Authority. Therefore, this Court is of the view that the petitioner, instead of agitating the matter before this Court, has to approach the Dispute Resolution Panel and file their objections as provided under Section 144C.
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