TMI Blog2017 (11) TMI 311X X X X Extracts X X X X X X X X Extracts X X X X ..... application pending before the CBDT and in the course of such an exercise he ought to bring it to the notice of the CBDT the statutory time limit, if any, applicable to make the ensuing assessment, so that the disposal of the application pending with the CBDT is carried out expeditiously. Needless to mention, the assessee is expected to render appropriate co-operation to the income-tax authorities in the matter. Even on the claim of expenses incurred by the Head Office on behalf of its Indian Branch, the matter is sent back to the Assessing Officer to be adjudicated afresh in accordance with law only after awaiting the outcome of the assessee’s application pending with the CBDT. Thus, we hereby set-aside the order of the CIT(A) and rest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /Mum/2011 - - - Dated:- 27-10-2017 - SHRI G.S.PANNU, ACCOUNTANT MEMBER AND SHRI RAM LAL NEGI, JUDICIAL MEMBER For The Assessee : Shri Mayur Kisnadwala For The Revenue : Shri Rajesh Kumar Yadav ORDER PER G.S.PANNU,A.M: The captioned are three appeals, two by the assessee and one by the Revenue, pertaining to assessment years 2007-08 and 2008-09 and since they relate to the same assessee and involves certain common issues, they have been clubbed and heard together and a consolidated order is being passed for the sake of convenience and brevity. 2. In both the assessment years a substantive common issue relates to assessee s claim for exemption under section 10(23C)(vi) of the Income Tax Act, 1961 ( in short ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 99-2000, wherein on identical facts, assessee s claim for exemption was denied. Another aspect was regarding the claim of expenses incurred by the Head Office on behalf of the Indian Branch amounting to ₹ 3,91,43,781/-, which was also denied in line with the stand of the assessing authority in the past years. As a consequence, the total income of the assessee was computed at ₹ 4,68,44,961/- i.e. surplus depicted in the Income and Expenditure Account. In coming to such conclusion, the Assessing Officer noted that the CBDT vide its order dated 12/10/2004 had rejected assessee s application seeking approval for exemption under section 10(23C)(vi) of the Act. The CIT(A) has also affirmed the stand of the Assessing Officer, against w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the Tribunal vide ITA Nos.2106 to 2108/Mum/2007 dated 27/04/2011 had set-aside the issues to the file of the Assessing Officer for denovo assessment and as a consequence, the Assessing Officer completed the assessment holding that assessee had fulfilled the conditions prescribed in section 10(23C)(vi) of the Act and assessed total income at Nil . It is further pointed out that so far as the assessment years 2003-04 to 2006-07 are concerned, vide ITA Nos.151 to 154/Mum/2008, the Tribunal had set-aside the issue again to the file of Assessing Officer for denovo assessment. It has been contended that the appeals be kept pending till the CBDT dispose off assessee s applications as per directions of the Hon ble Supreme Court dated 09/05/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authorities in the matter. 6.1 Even on the claim of expenses incurred by the Head Office on behalf of its Indian Branch, the matter is sent back to the Assessing Officer to be adjudicated afresh in accordance with law only after awaiting the outcome of the assessee s application pending with the CBDT. Thus, we hereby set-aside the order of the CIT(A) and restore the matter to the file of the Assessing Officer to make a denovo assessment in accordance with law, after affording the assessee a reasonable opportunity of being heard. Thus, for assessment year 2007-08, the appeal of the assessee is allowed for statistical purposes. 7. In so far as assessment year 2008-09 is concerned, assessee as well as Revenue are in appeal before us by w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... )(vi) of the Act. The Assessing Officer concluded that the books in question were proprietary materials of the assessee and that they are not off-the-shelf books readily available in the market. The Assessing Officer has also observed that such books/material are prepared solely for distribution to the students and, therefore, the cost incurred thereof would constitute payments in the nature of royalty/fee for technical services to the Head Office. Since assessee had not deducted any tax at source, the Assessing Officer disallowed the expenditure. On this aspect, the CIT(A) has differed with the Assessing Officer and noted that the books belong to the Head Office, who had supplied it to the branch for distribution among the students in Indi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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