TMI Blog2017 (5) TMI 484X X X X Extracts X X X X X X X X Extracts X X X X ..... e order dated 3rd June, 2016 passed by the Income Tax Appellate Tribunal (ITAT), Delhi Bench 'E' in ITA No. 1870/Del/2010 for the Assessment Year (AY) 1999-2000. 2. The Respondent Assessee filed its return of income for the AY in question on 31st December 1999 declaring the taxable income as 'Nil' after setting off of business income of ₹ 12,97,86,402 against unabsorbed business losses and depreciation. Since book profits were 'Nil, the Assessee's case was that no tax was payable under Section 115JA of the Act. The Assessee filed a revised return in 30th November 2000 reporting a business income of ₹ 12,97,44, 989 but still showing 'Nil' taxable income after claiming et off of unabsorbed busine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 010, the Commissioner of Income Tax (Appeals) [CIT (A)] rejected the Assessee's arguments on Section 148 but deleted the disallowance of 20% of foreign travelling expenses and provision for warranty, but sustained the other issues. Aggrieved by the said order, both the Revenue and the Assessee filed appeals before the ITAT. While the Assessee filed ITA No. 1870/Del/2010, the Revenue filed ITA No. 2147/Del/2010. 6. By the impugned common order dated 3rd June 2016, the ITAT allowed the Assessee's appeal ITA 1870/Del/2010 and dismissed the Revenue's appeal ITA 2147/Del/2010. The ITAT examined the audit objection raised qua the assessment order of the AO and the AO's response thereto and observed as under: It is found ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tted that the AO's reply to the audit objection did not constitute the formation of an opinion either. 8. The Court has also examined the letter dated 24th September, 2003 written by the AO in response to the audit objection. It reads as under: No. ACIT/CIR.13(1)/Audit/2003-04/499 Office of the Asstt. Commissioner of I.Tax Circle-13(1), New Delhi Dated:24.09.2003 To The SR. Receipt Audit Officer ITAP-13 Room No. 156 C.R. Building New Delhi. Sub: Audit Objection regarding short recovery of tax in the case of M/ s. Nokia India Ltd. Asstt. Year 1999-2000 Please refer to Audit Memo No. 268 dated 3.7.2003 in the above case. The audit scrutiny raised that for the purpose of Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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