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2019 (2) TMI 1125 - AT - Income TaxReopening of assessment - materials collected/impounded during survey operation established business connection of assessee with its Indian subsidiary as per provisions of section 9(1)(i) and existence of permanent establishment of assessee through its Indian subsidiary - AO/ Ld. DRP was of opinion that income attributable to permanent establishment in India, has escaped assessment - HELD THAT:- Notice issued under section 148 could not be sustained, once arm’s length price procedure has been followed. Validity of notice u/s 148 was issued to assessee for assessment years under consideration, wherein, AO in draft assessment order held that assessee had fixed place of business PE in India in terms of Article 5(1) and 5(2) of DTAA between India and Japan, which was being used by its employees-expatriates, as premises (at their disposal) for business of assessee. As Hon’ble Supreme Court in assessee’s own case for years under consideration has quashed and set-aside notice of reassessment u/s 148 of the Act, ground No.2 raised by assessee stands automatically allowed. As the notice has been quashed by Hon’ble Supreme Court, reassessment proceedings, pursuant to the said notice and the impugned orders passed by the AO stand automatically cancelled.
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