TaxTMI 
TaxTMI 
2013 (4) TMI 367
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....espect of the assessment year 2004-05 on the allegation that income had escaped assessment within the meaning of Section 147 of the said Act. 2. The purported reason for initiating the proceedings under Section 148 were recorded on 28.03.2011 and a copy thereof was forwarded to the petitioner along with the impugned notice dated 30.03.2011 itself. The purported reason for the allegation that the income had escaped assessment was, inter alia, as under:- "1. The assessment of M/s RPG Cellular Investment and Holdings Pvt. Ltd. for the assessment year 2004-05 was completed after scrutiny under Section 143(3) on 26.10.2006 determining a loss of Rs. 3,04,45,816/-. After verifying the record it is seen that the assessee claimed and was allowed e....
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....ue was referring to the approval to be given by the investee company (RPG Cellular Services Limited) or by the investor company (RPG Cellular Investment & Holdings Private Limited - the petitioner herein). However, the petitioner made it clear in its objections that the approval had been obtained by the investee company (RPG Cellular Services Limited), which was the requirement in law. In the present case, the petitioner is the investor company (RPG Cellular Investment and Holding Private Limited), whereas the investee company is M/s. RPG Cellular Services Limited. 5. The learned counsel for the petitioner also pointed out that the order dated 21.11.2011 and, in particular, paragraph 6.1 thereof is clearly erroneous inasmuch as the approva....
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....en approved by the Central Government on an application made by it in accordance with the rules made in this behalf and which satisfies the prescribed conditions: xxxx xxxx xxxx xxxx" A plain reading of the said provision makes it clear that it is the investee company which has to have approval of the Central Government. This becomes further clear from a reading of the Rule 2E of the Income Tax Rules, 1962 ((hereinafter referred to as 'the said Rules'). Sub-rules (3) and (4) of Rule 2E are relevant. They are set out herein below:- "(3) The Central Government shall approve an enterprise for the purposes of clause (23G) of section 10, if such enterprise is wholly engaged in the eligible business. (4) The Central Government may, before app....
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....r the purpose of section 10(23G) of the Income-tax Act, 1961, read with rule 2E of the Income-tax Rules, 1962 with effect from the Asstt. Year 2004- 05 to the Asstt. Year 2015-16 (upto 29.11.2014) i.e. upto the end of period of 20 years as mentioned in Ministry of Communications, Department of Telecommunications (VAS CELL) letter F. No. 842-47/2000-VAS/Vol.IV dated 29.01.2001 issued to amend the terms of licence agreement No. 842-21/93-TM dated 30th November, 1994 of earlier, in the event of violation of the terms of the agreement aforesaid. 2. The approval is subject to the conditions that - (i) the enterprise/ undertaking will conform to and comply with the provisions of section 10(23G) of the Income-tax Act, 1961, read with rule 2E of ....
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.... Delhi. 5. Addl. Secretary (Admn.), Deptt. Of Revenue, New Delhi. 6. DIT (RSP & PR) (Bulletin Section), New Delhi. 7. Ministry of Communications, Department of Telecommunications, Govt. of India, New Delhi. (Nidhi Singh) Under Secretary to the Government of India Central Board of Direct Taxes" This notification had also been produced at the time of the original assessment under Section 143(3) of the said Act. Apart from this, we had asked the learned counsel for the petitioner to produce the original approval granted by the Central Government inasmuch as the notification dated 18.11.2004 appears to be a renewal granted by the Central Government. The learned counsel for the petitioner has, today, placed before us a notification dated ....