Pinaki Chandra Ghose,J. - (1.) This is an application filed by the petitioner, inter alia, challenging the impugned notice dated March 1, 2001, issued by the respondent-authorities under Section 163 of the Income-tax Act, 1961 (hereinafter referred to as "the said Act"), an order passed thereon and further the impugned notice dated March 8, 2001, issued by the respondent-authorities under Section 148 of the said Act.
(2.) The facts of the case briefly are as follows : Petitioner No. 1 is a company having its registered office at 71, Park Street, Kolkata. The petitioner-company is all along assessed by respondent No. 2 at Kolkata. The petitioner has a branch office at Mumbai. Linklaters and Paines of London (hereinafter referred to as the "foreign bank") is a solicitor firm engaged by the petitioner by agreement dated May 17, 1996, for rendering their services to the petitioner. The petitioner-company obtained a no objection certificate from the concerned officer of the Income-tax Department for remittance of professional fees payable to the said firm under Section 195 of the said Act. The said no objection certificate was obtained by the petitioner for making remittance of the professional fees of the said foreign firm in London in terms of the provisions of the Double Taxation Avoidance Agreement between the Government of India and the United Kingdom.
(3.) On or about November 18, 1997, a Circular bearing No. 759 (see [1997] 228 ITR (St.) 146) was issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, whereby the provisions for making application to obtain no objection certificate from the Income-tax Department was withdrawn. Subsequent thereto, the petitioner made two remittances to the said foreign firm.;