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2017 (6) TMI 85 - HC - Income TaxReopening of assessment - failure to offer for taxation the corresponding amount either separately or as royalty income in the form of 'incoming shares service charges paid by ‘OIPL to OSC', in its return of income filed for the AY 2007-2008 - Held that:- As rightly pointed out by the Assessee even for AY 2006-2007, the DRP by order dated 16th August 2013, disagreed with the draft assessment order dated 2nd November, 2012 of the AO of OIPL wherein identical additions were suggested. The DRP held that the said two items viz. (i) incoming shared service charges and (ii) alleged excess payment for software media pack/master copy, were not income in the hands of the Assessee herein. On the basis of the above order of the DRP, the final assessment order for AY 2006-2007 in the case of OIPL was passed on 30th November, 2013. This was followed in 2007-08 where again the draft assessment order of the AO of OIPL was not concurred with by the DRP. The DRP’s order dated 29th August, 2014 held that the in respect of both the issues no income resulted in the hands of the Assessee herein. This order was acted upon and the final assessment order was passed by the AO on 30th October, 2014. With the very basis of the reopening of the assessment in the present case having been eroded, the Court hereby sets aside the impugned notice dated 26th March, 2014 and the consequent order dated 23rd March, 2015 passed by the AO disposing of the Assessee’s objections.
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