Relief of Vodafone: Delhi HC Quashes Assessment Order passed by AO on ground of Non Consideration of Proper Evidence [Read Order]

In a recent case, the Delhi High Court quashed the assessment order passed by the assessing officer under section 144 of the Income Tax Act,1961 on the ground of non-consideration of proper evidence. 

Vodafone Roaming Services, the petitioner filed a writ petition against the assessment order passed by the assessing officer without considering the return of income filed by the petitioner. 

The counsel for the petitioner contended that the reply filed by the petitioner had not been taken into account by the Assessing Officer (AO) while passing the impugned draft assessment order under Section 144C(1) of the Income Tax Act. 

It was further submitted that the petitioner was not served with a statutory notice, as required under the proviso appended to Section 144 of the Income Tax Act. 

The counsel for the revenue contended that the petitioner had not offered for levy of tax, income earned against cellular roaming services provided to an entity going by the name Tata Tele Services Ltd. 

Also submitted that the income received by the petitioner was nothing but royalty, and thus, falls within the purview of section 9(1)(vi) of the Income Tax Act. 

The Court observed that the best way forward would be to set-asides the impugned draft assessment order and grant the assessing officer to pass fresh assessment order. 

The two-member panel comprising Rajiv Shakdher and Girish Kathpalia quashed the assessment order and directed the assessing officer to pass fresh assessment order while disposing of the petition filed by the petitioner. 

To Read the full text of the Order CLICK HERE

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