M/S HUAWEI TELECOMMUNICATIONS (INDIA) COMPANY PVT. LTD. vs ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2, DELHI & ANR.

Judgment text excerpt

$ * IN THE HIGH COURT OF DELHI AT NEW DELHI % Judgment reserved on: 18.12.2025 Judgment delivered on: 30.03.2026 Judgment uploaded on: As per Digital Signature~ + W.P.(C) 15970/2023, CM APPL. 64257/2023 + W.P.(C) 13572/2024, CM APPL. 56719/2024 + W.P.(C) 13553/2024, CM APPL. 56682/2024 + W.P.(C) 14898/2024, CM APPL. 62466/2024 M/S HUAWEI TELECOMMUNICATIONS (INDIA) COMPANY PVT. LTD. .....Petitioner versus ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2, DELHI & ANR .....Respondents Advocates who appeared in this case For the Petitioner : Mr. Arvind Datar and Mr. Tarun Gulati, Senior Advocates with Mr. Kishore Kunal, Ms. Ankita Prakash and Mr. Anuj Kumar, Advocates. For the Respondents : Mr. Indruj Singh Rai SSC, Mr.Sanjeev Menon, Mr. Rahul Singh JSCs and Mr. Gaurav Kumar, Mr.Siddharth Burman, Advocates. CORAM: HON'BLE MR. JUSTICE V. KAMESWAR RAO HON'BLE MR. JUSTICE VINOD KUMAR JUDGMENT Signature Not Verified Signed By:PRADEEP WP(C) No.15970/2023 & Connected Page 1 of 108 SHARMA Signing Date:30.03.2026 15:19:22 V. KAMESWAR RAO, J. S.No. Particulars Page Nos. 1. INTRODUCTION 2 2. FACTUAL MATRIX 4 3. SUBMISSIONS ON BEHALF OF THE PETITIONER 3.1 RE : SPECIAL AUDIT 11 3.2 RE : REASSESSMENT 21 4. SUBMISSIONS ON BEHALF OF THE RESPONDENTS 4.1 RE : SPECIAL AUDIT 28 4.2 RE : REASSESSMENT 36 5. REJOINDER SUBMISSIONS 54 6. SUR-REJOINDER 60 7. REBUTTAL 67 8. ANALYSIS AND CONCLUSION 73 8.1 REASSESSMENT 73 8.2 SPECIAL AUDIT 103 9. OPERATIVE DIRECTIONS 107 INTRODUCTION 1. The captioned petitions have been filed challenging the directions of the respondent/Revenue requiring special audits to be carried out on the accounts of the petitioner- Huawei Telecommunications (India) Company Private Limited (hereinafter referred to as the petitioner and the assessee interchangeably) for the