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2019 (7) TMI 308 - HC - Income TaxReopening of assessment u/s 147 - Accrual of income in India - whether Appellant has permanent establishment in India? - HELD THAT:- As decided in Honda Motor Co. Ltd. v Assistant Director of Income-tax, Noida [2018 (5) TMI 265 - SUPREME COURT] the proceedings against the Assessee were quashed and the appeal was allowed. The Supreme Court held that the notice for reassessment was based only on “the allegations that the Appellant has permanent establishment in India”, and that the reopening could not be on such basis once the arm’s length procedure had been followed. It must be mentioned at this stage that as far as the impugned order in the present appeal is concerned, the ITAT has gone entirely by the fact that the Supreme Court has allowed the appeal of the Assessee after finding that the arm’s length procedure had been followed. Therefore, the orders of the Assessing Officer (‘AO’) attributing income to the Assessee’s permanent establishment in India could not be sustained in law. Revenue appeal dismissed.
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