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2023 (1) TMI 1175 - HC - Income TaxReopening of assessment u/s 147 - income chargeable to tax accrues or arises in India - whether the investment in shares of Agile by the petitioner was a capital account transaction, given the fact that there is no allegation of round-tripping - HELD THAT:- We may note, that there is no reference to Section 115A of the Act, for whatever its worth, either in the show-cause notice or in the impugned order passed by the AO. As to whether the said provisions are, at all, applicable to a non-resident company is a moot point which the AO will have to decide. Having regard to the overall facts, we are of the view, that this writ petition can be disposed of with the following directions: (i) The impugned order passed u/s 148A(d) of the Act and the consequent notice of even date issued under Section 148 of the Act are set aside. (ii) The AO will carry out a de novo exercise. The AO will, inter alia, deal with the petitioner’s contention, that the transaction in issue is a capital account transaction, and that no income whatsoever chargeable to tax accrues or arises in India. (iii) The AO will accord personal hearing to the authorized representative of the petitioner. For this purpose, the AO will issue a notice fixing the date and time of hearing.
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