Delhi HC Quashes Assessment against Nokia since Proceedings were Completed against a Non-Existing Entity [Read Order]

Nokia - Internal Auditors - Taxscan

The Delhi High Court in the case of Pr.Commissioner of Income Tax-6 vs Nokia Solutions & Network India pvt Ltd has quashed Assessment against Nokia since proceedings were completed against a non-existing entity.

Revenue aggrieved by the decision of ITAT on which assessment made in that case, was in respect of a company that had ceased to exist and the matter now reached this High Court.

The Assessee Nokia Solutions And Networks India Private Limited provides mobile broadband and wireless network services filed its return which was selected for scrutiny and notice was issued under Section 143(2) of the Income Tax Act. A notice was issued to an old company merged with Nokia Solutions for further proceedings.

Since the company was non-existent and transactions are in the nature of international transactions AO referred the matter to the Transfer Pricing Officer. The DRP made its findings and framed final return. The respondent preferred an appeal to the ITAT and urged an additional ground that the assessment was framed in the name of a non-existing entity.

The tribunal handover the matter to DRP for re-examine the above said matter and in return DRP returned a finding that the assessments were framed in the name of the non-existing entity but proceeded to direct the AO to frame the assessment in the name of the respondent.

The Court pressed that from the narration it is evidencing that the assessment was framed in the name of a non-existing entity.

While dismissing the appeal, the division bench comprising of Justice S. Ravindra Bhat and Justice A. K. Chawla had considered opinion while endorsing the decision of Spice Entertainment Ltd, if the assessment is concluded in favour of a non-existing entity, then notwithstanding Section 292B, the position does not improve. Accordingly court nullified the assessment framed in the name of non-existing entity.

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