TMI Blog2019 (12) TMI 608X X X X Extracts X X X X X X X X Extracts X X X X ..... we have quashed the reassessment order passed u/s.143(3) r.w.s147, the appeal filed by the Revenue has become infructuous and hence dismissed. - ITA No.2073/Chny/2018, C.O. No.9/Chny/2019 (ITA No.2073/Chny/2018) - - - Dated:- 11-11-2019 - SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER For the Appellant : Shri A.V.R. Sreenivasan, JCIT For the Respondent : Shri Philip George And Shri D. Palanivel, Advocates ORDER PER S. JAYARAMAN, ACCOUNTANT MEMBER: The Revenue filed this appeal n I.T.A. No.2073/Chny/2018 against the order the Commissioner of Income Tax (Appeals)-14, Chennai in ITA No.376/CIT(A)-14/2016-17; dated 27.03.2018 and on which the Assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of their character has an enduring benefit to the assessee s business and is capital expenditure. 2.3. The learned CIT(A) failed to note that after the legislature specifically introduced Sec.32(1)(ii) conferring depreciation on intangible assets, film satellite right which falls within the group of intangible assets and it is only capital in nature. 2.4. Having regard to the Supreme Court s decision in the case of Assam Bengal Cement (27 ITR 34) the learned CIT(A) ought to have upheld the action of the Assessing Officer. 3. For these and other grounds that may be adduced at the time of hearing, it is prayed that the order of the learned CIT(A) may be set aside and that of the Assessing Officer restor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or had failed and furnished full and complete disclosure of facts and materials in its original assessment proceedings as is evident from assessment order u/s.143(3). 2.2.5. The Commissioner of Income Tax (Appeals) ought to have appreciated that the Assessing Officer could exercise a jurisdiction u/s.147 after four years only on the ground of any escapement by reason of failure on the part of the assessee either to file a return or to disclose truly and fully the material facts necessary for assessment. 2.2.6. The Commissioner of Income Tax (Appeals) ought to have therefore appreciated that the issuance of notice u/s.148 itself is barred by limitation and illegal and the subsequent reassessment proceedings are void a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndate of the provisions of Income Tax Act, 1961. 2.4.2. The Commissioner of Income Tax (Appeals) ought to have appreciated that the predecessor Assessing Officer had categorically applied his mind and formed an opinion that the expenditure was not capital in nature and disallowed the same u/s.40(a)(ia). 2.4.3. The Commissioner of Income Tax (Appeals) ought to have appreciated that the genuineness and nature of the expenditure was not doubted by the predecessor Assessing Officer, but the same was disallowed only for want of deduction of tax at source by applying provisions of Section 40(a)(ia). 2.4.4. The Commissioner of Income Tax (Appeals) ought to have appreciated that the Assessing Officer must necessa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d no independent existence of its own and the assessment could not have been reopened in respect of the same items. 2.6. The Commissioner of Income Tax (Appeals) ought to have in the above facts and circumstances of the case, annulled the reassessment order in toto. 3. The Cross Objector contests all the findings of fact and law and all presumptions made against the Cross Objector by the Commissioner of Income Tax (Appeals) 4. The Cross Objector craves leave to file additional grounds of Cross Objector at or before the time of hearing. 4. The Cross-Objection was filed after a delay of 116 days. The assessee filed the affidavit for condonation of delay in filing the cross objection pleading, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notice u/s.148 on 31.03.2015, i.e. after four years from the end of the relevant Assessment Year. In such case, the Assessing Officer is bound to record the reason of failure on the part of the assessee to disclose fully and truly all material facts necessary for its assessment for that Assessment Year. 7.1 In order to consider the same, the relevant portion of the assessment order is extracted as under: 2. During the assessment proceedings, it was found that the assessee had debited a sum of ₹ 25,71,19,000/- towards purchase of satellite rights of films and programmes. The rights were bought from various parties with different purchase costs. On examination of the purchase agreements, it was observed t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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