TMI Blog2020 (12) TMI 459X X X X Extracts X X X X X X X X Extracts X X X X ..... te this possession which is clearly evident from the reasons recorded by the Assessing Officer. He has also not been able to point out any such fresh tangible material that had come to the possession of the Assessing Officer which formed the basis of reopening. CIT(A) was fully justified in holding the re-assessment proceedings to be invalid by relying on the said decision Sandvik System Development [ 2017 (12) TMI 571 - ITAT PUNE ] since there was no fresh tangible material which had come to the possession of the Assessing Officer and which formed the basis of reopening. Therefore uphold the impugned order of the Ld. CIT(A) on this issue and dismiss this appeal filed by the Revenue. - ITA No. 1672/PUN/2019 and CO No. 04/PUN/2020 - - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontracting State shall be taxable in the first-mentioned state if: (a) the recipient is present in the other Contracting State for a period or periods not exceeding in the aggregate 183 days in any 12 months period; and (b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other Contracting State; and (c) the remuneration is not borne by a permanent establishment or fixed base which the employer has in the other Contracting State. In view of this assessee's claim that salary earned by him of ₹ 32,87,834/- in UK is non-taxable in Indian as per Article 15(1) of the UKDTAA, which reads as under: Dependent personal services:- 1. Subject to the provisions of Article 16, 18, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enging the validity of the said assessment as well as disputing the addition of ₹ 32,87,834/- made therein on merit. After considering the submissions made on behalf of the assessee, the Ld. CIT(A) found merit in the preliminary issue raised by the assessee challenging the validity of the assessment made by the Assessing Officer u/s. 143(3)/147 of the Act and accordingly the said assessment was cancelled by him for the following reasons given at Para No. 4.3 to 4.7 of his impugned order: 4.3. DECISION : The observations of the AO, submissions of the appellant and the material on record have been considered. 4.4. In his case, it is seen that the AO issued notice u/s. 148 of the Act for the following reason: In this case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the computation of total income, copy of which placed at page 2 of the Paper Book, had in the note given a declaration in respect of such receipts and had pointed out that the same do not fall within ambit of royalty or fees for technical services. On these facts, the Hon'ble ITAT held as given below: 16. In view of the above said declarations made by the assessee which has also been considered by the Pune Bench of Tribunal in sister concern of the assessee i.e., Sandvik Information Technology AB, though for assessment year 2005-06, we hold that in the absence of any tangible material establishing escapement of income in the hands of assessee, there is no merit in the exercise c{ invoking of re-assessment proceedings under section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndvik System Development (Supra), it is held that re-assessment proceedings are invalid and bad in law. The consequent order passed under section 143(3) r.w.s. 147 of the Act also does not stand. Accordingly, Ground No. 1 and 2 of the appellant are allowed. 6. Keeping in view of the decision rendered by him on the preliminary legal issue canceling the assessment made by the Assessing Officer u/s. 143(3)/147 of the Act, the Ld. CIT(A) did not adjudicate upon the other issues raised by the assessee challenging the addition made by the Assessing Officer on merit by treating the same as academic. Against the order of Ld. CIT(A), Revenue has preferred appeal before the Tribunal while the assessee has also filed his cross objections. 7. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ason to believe of escapement of income, in the absence of which re-assessment proceedings are invalid and bad-in-law. In my opinion, the ratio of the said decision of this Tribunal is clearly applicable in the facts of the present case and the Ld. CIT(A) was fully justified in holding the re-assessment proceedings to be invalid by relying on the said decision since there was no fresh tangible material which had come to the possession of the Assessing Officer and which formed the basis of reopening. I therefore uphold the impugned order of the Ld. CIT(A) on this issue and dismiss this appeal filed by the Revenue. 8. As a result of the decision rendered by us upholding the impugned order of the Ld. CIT(A) canceling the re-assessment made ..... X X X X Extracts X X X X X X X X Extracts X X X X
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