9911796707
TMI Blog2021 (3) TMI 747X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessee filed its return of income for the assessment year 2006-07 belatedly on 13.03.2007 returning a loss of Rs. 4,14,575/-. The gross loss for the year was Rs. 32,26,125/- against which, the assessee set off short term capital gain of Rs. 28,11,550/-. Subsequently, a notice under section 148 was issued on 11.4.2008. In response to which, the assessee filed a return of income on 25.8.2009, returning a loss of Rs. 4,14,575/- . Thereafter, a notice under section 143(2) was issued on 25.8.2009. The assessment was completed on 29.12.2009 under section 143(3) read with section 147 determining the total income at Rs. 8,85,425/-. The assessee has claimed Rs. 35 lakhs towards cost of acquisition of a film, but has paid only Rs. 2 lakhs towa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and directed the Assessing Officer to disallow the sum of Rs. 33 lakhs. 2.4 Aggrieved over the order passed by the Commissioner of Income Tax, the assessee preferred an appeal before the Income Tax Appellate Tribunal, and the Tribunal by its order dated 13.06.2013, held that the assessee was following mercantile system of accounting. Section 43(2) clearly stipulates "paid" means actually paid or incurred according to the method of accounting upon the basis of which the profits or gains are computed under the head "Profits and Gains of Business or Profession". In these circumstances, the Tribunal held that the order of the Assessing Officer is not erroneous and prejudicial to the interest of revenue warranting invocation of revisionary po ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng Officer had called for the relevant agreement during the course of original assessment proceedings and the assessee also submitted the same before the Assessing Officer. The Assessing Officer during the course of original assessment proceedings, considered the issues and gave the allowances to the assessee. Revisionary powers were invoked by the Commissioner of Income Tax based on letter of the Assessing Officer and not based on an independent assimilation of facts. The Tribunal has rightly observed that the Commissioner of Income Tax was only trying to stamp his approval to a change of opinion of the Assessing Officer. The Tribunal has rightly came to the conclusion that the original order of the Assessing Officer did not suffer from an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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