NESTLE SA Vs. ASSISTANT COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) Nestle SA, a company established under the laws of Switzerland and a tax resident of Switzerland, has filed this petition under Article 226/227 of the Constitution seeking the quashing of a notice dated 26th March, 2018 issued to it by the Assistant Commissioner of Income Tax (International Taxation), Circle-2 (2) (2), New Delhi (the Respondent) under Section 148 of the Income Tax Act, 1961 ("Act") requiring it to file a return of income. The petition also challenges an order dated 23rd October, 2018 passed by the Respondent rejecting the Petitioner's objections to the said notice.

(2.) The Petitioner states that it is the world's largest food and beverage company with annual consolidated revenue of CHF 90 Billion and profits of CHF 7 Billion. The Petitioner states that it had total retained earnings and reserves of CHF 88 Billion and 80 Billion for the years ending December 2010 and 2011 respectively.

(3.) The Petitioner has its subsidiary in India by the name of Nestle India Ltd. ("Nestle India") incorporated under the Companies Act, 1956. During the Assessment Year ("AY") 2011-12, the Petitioner's receipts of Rs. 158 crores approximately from India from its subsidiary Nestle India consisted of dividend and interest on which tax was duly deducted at source in accordance with the provisions of the Act. The Petitioner states that it has received approximately Rs. 419 crores from Nestle India as dividend and interest over the past three years.