TMI Blog2023 (1) TMI 1175X X X X Extracts X X X X X X X X Extracts X X X X ..... . 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chargeable to tax. 6. Mr Kaka says, that the shares were purchased from various sellers including, one, Mr Jose Kattadyil Joseph. 6.1 Insofar as this limb of the transaction is concerned, the facts, as placed on record, indicate that Rs.40,16,40,093/- was paid to the aforementioned seller, albeit, after deducting tax at source amounting to Rs.2,67,80,000/-. 7. It is pointed out by Mr Kaka, that the withholding tax was crystallized by the respondent/revenue. 7.1 For this purpose, our attention has been drawn to a certificate issued under Section 197 of the Act, which is appended on page 134 of the case file. 8. In sum, it is Mr Kaka s contention, that no income has accrued or arisen in India, the subject transaction is a capi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her issues raised in the objections preferred by the petitioner. 12. Having heard the learned counsel for the parties and perused the record, according to us, the central issue,to which the Assessing Officer (AO) should have applied his mind is, as to 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. 13. We may also note, that there is no reference to Section 115A of the Act, for whatever its worth, either in the show-cause notice dated 31.05.2022 or in the impugned order passed by the AO. 13.1 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. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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