2020 (2) TMI 414

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....ition, it was submitted by the learned Departmental Representative that the Agreement with Karnataka State Cricket Association (KSCA) is dt.14.09.2011 which is much after the end of the relevant year i.e. F.Y. 2009-10 relevant to Assessment Year 2010-11 and this aspect has been over looked by the Hon'ble Tribunal in the impugned order and therefore it is an apparent mistake which should be rectified. 3. Whereas the learned Authorised Representative of the assessee submitted that the Assessing Officer in the assessment order noted that the Agreement in question is the date much after and relevant Assessment Year i.e. 2010-11. But even after noting these facts, the Assessing Officer has proceeded to decide the liability in question and....

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....Agreement with Karnataka State Cricket Association (KSCA) is dt.14.09.2011 which is much later to the FY 2009-10 relevant to Assessment Year 2010-11 and therefore there is apparent mistake in the Tribunal order because this aspect was not dealt by the Tribunal. Before taking any decision on this aspect, we feel it proper to produce relevant portion from the assessment order as to whether the basis of the Assessing Officer's decision that the Agreement in question is of date after the end of the relevant accounting year. For this purpose, we reproduce the following para from page 2 of the assessment order : 2. The case was selected for scrutiny under CASS. Notices u/s 143(2) and 142(1) along with questionnaire were issued calling fo....

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....g aspects are clear. 1. The academy is yet to assume inception as evidenced by Para -II of the agreement. 2. Rs. 45,00,000/- is paid towards establishment of the academy as evidenced by Para-IV of the agreement. In the light of the above, the expenditure of Rs. 45,00,000/- is capital in nature. The academy which is yet to gain inception, is going to bear enduring nature of benefits to the assessee company, as evidenced by the following aspects of the agreement. 1. Para-V of the agreement, the assessee company shall have exclusive rights for branding/leveraging the academy for the purpose of branding and promotion for its nominate sponsor/any USL Brand, USL being a holding company of the assessee company. ....