ERNST AND YOUNG EMEIA SERVICES LIMITED vs ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-INTERNATIONAL TAX-1-2-2, DELHI

Judgment text excerpt

$~94 * IN THE HIGH COURT OF DELHI AT NEW DELHI % Date of Decision: 24.03.2025 + W.P.(C) 13687/2024 & CM No.57322/2024 ERNST AND YOUNG EMEIA SERVICES LIMITED.....Petitioner Through: Mr. Kamal Sawhney, Mr. Nikhil Agarwal & Mr. Nishank Vashistha, Advs. Versus ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-INTERNATIONAL TAX-1-2-2, DELHI .....Respondent Through: Mr. Sunil Agarwal, Mr. Shivansh B. Pandya, Mr. Viplav Acharya, Ms. Priya Sarkar & Mr. Utkarsh Tiwari, Advs. CORAM: HON'BLE MR. JUSTICE VIBHU BAKHRU HON'BLE MR. JUSTICE TEJAS KARIA VIBHU BAKHRU, J. (ORAL) 1. The petitioner has filed the present petition impugning a notice dated 20.06.2024 issued under Section 148A(b) of the Income Tax Act, 1961 [the Act]; an order dated 29.08.2024 passed under Section 148A(d) of the Act; and a notice dated 29.08.2024 issued under Section 148 of the Act initiating reassessment proceedings for assessing the petitioner’s income chargeable to tax for Assessment Year [AY] 2018-19. PREFATORY FACTS 2. The petitioner [Assessee] is a foreign company and a tax resident of United Kingdom. It is engaged in providing common area services, market Signature Not Verified Digitally Signed By:TARUN RANA Signing Date:03.04.2025 W.P.(C) 13687/2024 Page 1 of 9 15:13:19 development support services to various group entities of Ernst and Young Network (EY Network) including Indian entities, which are part of the EY Network. 3. The Assessee filed its income tax return for the AY 2018-19 on 31.10.2018 declaring a total income of ₹5,14,21,33,981/- and claimed that the said income was exempt under the provisions of India-UK Double Taxation Avoidance Agreement [India-UK DTAA]. The Assessee claims that it does not have any permanent establishment [PE] in India and its receipts for rendering services to constituent e