W.p.(C)/15488/2024 Of Mci International Llc (Formerly Known As Mci International, Inc) v. Assistant Commissioner Of Income Tax And Anr

$~76 *IN THE HIGH COURT OF DELHI AT NEW DELHI+W.P.(C) 15488/2024 & CM APPL. 65004-05/2024MCI INTERNATIONAL LLC (FORMERLY KNOWNAS MCI INTERNATIONAL, INC).....PetitionerThrough:Mr Ajay Vohra, Sr Advocate with MrRajeev Mishra, Advocate.versus ASSISTANT COMMISSIONER OF INCOMETAX AND ANR.....RespondentsThrough:MrIndrujSinghRai,SSC,MrSanjeev Menon and Mr Rahul Singh,JSCs and Mr Anmol Jagga, Advocate. CORAM:HON'BLE MR. JUSTICE VIBHU BAKHRUHON'BLE MS. JUSTICE SWARANA KANTA SHARMAO R D E R % 07.11.2024 1.Issue notice. The learned counsel for the respondents accepts notice.2.The petitioner is a tax resident of the United States of America andhas furnished the copy of the tax residency certificate along with the presentpetition. The petitioner during the financial year relating to the assessmentyear (AY) 2018-19 received a sum of ₹13,67,35,419/- as communication charges. The petitioner claims that the said charges were for the servicesrendered overseas and the petitioner does not have any establishment inIndia. 3.The assessing officer (AO) on the basis of the information that thepayments have been made by M/s Bharti Airtel Limited(an Indiancompany) to the petitioner for communication charges issued a notice dated13.08.2024 under Section 148A(b) of the Income Tax Act, 1961 (hereafterthe Act), inter alia, stating that the amount of ₹13,67,35,419/-paid by M/s Bharti Airtel Limited is in the nature of fee for technical services ascontemplated under the provisions of Section 9(1)(vii) of the Act.Thepetitioner was called upon to furnish a reply on or before 21.08.2024. 4.It is the petitioner’s case that it received the said notice throughcourier on 27.08.2024 and, therefore, did not have any opportunity torespond to the same. In absence of any response from the petitioner, the AOproceeded to pass an order dated 30.08.2024 under Section 148A(d) of theAct for reopening of the assessment for the AY 2018-19. Accordingly, theAO also issued the notice dated 30.08.2024 under Section 148 of the Act forinitiating the re-assessment proceedings for the AY 2018-19. 5.We find merit in the contention that the petitioner was not affordedfull opportunity to respond to the notice dated 13.08.2024. The same wasreceived by the petitioner after the period to respond to it had expired. 6.In the given facts, we consider it apposite to set aside the notice dated30.08.2024 issued under Section 148 of the Act as well as the order dated30.08.2024 passed under Section 148A(d) of the Act. The petitioner is atliberty to file a response to the notice under Section 148A(b) of the Act withthe AO within the period of one week from date. The AO shall consider thesame and pass an appropriate order as he deems fit in accordance with law. 7.The petition is disposed of in the aforesaid terms. Pendingapplications also stand disposed of. VIBHU BAKHRU, J SWARANA KANTA SHARMA, J NOVEMBER 07, 2024 MClick here to check corrigendum, if any