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2019 (5) TMI 846 - AT - Income TaxReopening of assessment - Income accrued in India - reopening based on allegation as appellant has permanent establishment in India - fixed place PE in India - DTAA - interpretation of direction of Supreme Court - HELD THAT:- The reopening proceedings were challenged by the assessee before the honourable Supreme Court of India in HONDA MOTOR CO. LTD, JAPAN, THROUGH ITS AUTHORISED REPRESENTATIVE [2018 (5) TMI 265 - SUPREME COURT] along with batch of other appeals which were disposed of vide as held that in view of the judgment of the honourable Supreme Court in NEW DELHI VS E-FUNDS IT SOLUTIONS INCORPORATION, [2017 (10) TMI 1011 - SUPREME COURT] once arm’s-length principle has been satisfied, there can be no further profit attributable to a person, even if it has a permanent establishment in India. The honourable Supreme court was further pleased to hold that since the impugned notice is for the reassessment are based only on the allegation that the appellant has permanent establishment in India, notice cannot be sustained Once arm’s-length price procedure has been followed. The honourable Supreme court also noted that the counsel for the revenue stated that he does not have complete instructions. Therefore, the honourable court gave the liberty that if the revenue disputes the above factual position, it will be at the liberty to move this court. Even if, as per the revenue, the transaction are not at arm’s-length, it is required to approach the honourable Supreme Court only. In view of this, all these appeals against the orders of the reassessment becomes infructuous as reassessment notices have been quashed by the honourable Supreme Court as per above order. - Decided in favour of assessee.
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