9911796707
TMI Blog2017 (8) TMI 718X X X X Extracts X X X X X X X X Extracts X X X X ..... and logistic business to UPS SCS (India) Pvt. Ltd. w.e.f. 01.4.2006. For the assessment year under dispute, the assessee filed its return of income on 31.12.2008 declaring income of Rs. 80,59,171/-. The assessment in case of the assessee was originally completed u/s. 143(3) of the Act vide order dated 12.11.2009. Subsequently, the Assessing Officer (A.O.) on examining the assessment records found that the assessee had received an amount of Rs. 1.94 crores on account of transfer of customer data base and human resources which was treated by the assessee as capital receipt, hence, not taxable. The A.O. was of the opinion, since, the customer data base and human resources are linked to the activities carried on by the assessee, it is chargeable to tax as revenue receipt. Accordingly, after recording reasons, A.O. proceeded to reopen the assessment u/s. 147 of the Act by issuing a notice u/s. 148 of the Act. In response to the notice issued u/s. 148 of the Act, the assessee appeared before the A.O. and objected to the initiation of proceedings u/s. 147 of the Act. As far as the issue of taxability of the amount received towards transfer of customer data base, it was submitted by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nished all details relating to transfer of assets including the transfer of human resources and customer relationship value. In this context, the ld. AR drew our attention to assessee's reply dated 11.11.2009 along with Annexure, a copy of which is at page 21 of the paper book. He submitted, before that, on 06.11.2009, the assessee had furnished details of transfer of assets to UPS SCS (India) P. Ltd. He submitted, the A.O. after making enquiry and examining the materials brought on record as well as submissions made by the assessee, with due application of mind has completed the assessment accepting assessee's claim that the amount received on account of transfer of human resource and customer relationship being a capital receipt, is not taxable. He submitted, inspite of the fact that the issue was examined by the A.O. during the original assessment proceeding and while accepting the assessee's claim, he has already formed opinion, without any fresh tangible material brought to on record, the A.O. re-examining the materials already available on record and considered in the original assessment proceeding has reopened the assessment on a mere change of opinion that the amount receiv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee has not only filed its return of income voluntarily as provided u/s. 139(1) of the Act, but, the assessment in case of the assessee was also completed originally u/s. 143(3) of the Act which presupposes that the A.O. has completed the assessment after examining the facts and materials on record. It is evident, in the computation of total income filed along with the return of income, the assessee had specifically mentioned the reason for not offering to tax the amount received from transfer of human resource and customer relationship value. Further in a separate note attached to the return of income, the assessee had again made elaborate submissions, why the amount received on account of customer relationship and human resource is not taxable. It is relevant to observe, during the original assessment proceeding, the return of income along with the computation of total income was subject matter of scrutiny by the A.O. as it forms the very basis of a scrutiny assessment. Further, from the reply dated 06.11.2009 along with its Annexure as submitted in the paper book, it is noticed that in response to query raised by the A.O., the assessee has not only furnished the details of ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cie, it is evident that on examining the assessment records, the A.O. forms an opinion that the amount of Rs. 1.94 crores received on account of transfer of customer data base and human resource is taxable as revenue receipt. Thus, it is clearly evident that the A.O. has formed his opinion on the basis of materials already available in the assessment record at the time of original assessment proceeding and there is no fresh tangible material, coming to the possession of the A.O. after completion of the original assessment. In fact, the aforesaid factual position has not been disputed by the ld. DR. He has supported the reopening of assessment on the reasoning that the A.O. did not examine the issue during the original assessment proceeding. However, as per the facts discussed in the earlier paragraphs, we have found that in course of original assessment proceeding, the A.O. not only enquired into all the issues relating to transfer of assets, including transfer of human resource and customer relationship, but after applying his mind to the materials brought on record, he completed assessment u/s. 143(3). Therefore, the contention of the ld. DR that the A.O. did not examine the issu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment proceedings, the Petitioner has been asked to furnish details in support of the claim for exemption under Section 80IA/IB of the Act. The letter further records that the details sought for were furnished and it is now observed that there has been a dis-proportionate distribution of expenses between various units belonging to the Petitioner for claiming deduction under Section 80IA/IB of the Act. This is a further indication of the fact that the Assessing Officer had during the regular assessment proceedings for Assessment Year 2002-03 sought information in respect of the allocation of expenses and the explanation offered by the Petitioner was found to be satisfactory. This is evident from query dated 27th December, 2004 and the Petitioner's response to the same on 25th January, 2005 explaining the manner of distribution of common expenses for delaying the process of claiming deduction under Section 80IA/IB of the Act. All this would indicate that Assessing Officer had formed an opinion while passing the order dated 9th March, 2005. This Court in Aroni Commercials Ltd. v. Asstt. CIT [2014] 367 ITR 405 had occasion to consider somewhat similar submission made by the Revenu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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