2022 (12) TMI 571

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....n For the respondent Divesh Chawla ORDER Per Pramod Kumar VP 1. This appeal is directed against the order dated 4th March 2021, passed by the learned CIT(A) in the matter of assessment under section 143(3) r.w.s. 144C(3) of the Income Tax Act, 1961, for the assessment year 2014-15. 2. Grievances raised in the memorandum of appeal are as follows: 1. In the facts & Circumstan....

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....rge and education cess) while the current year income is the receipt from Franchise Fees which in the nature of Royalty income and taxed on a gross basis in accordance with the provisions of Section 115A(1) (b) of the Act at the rate of 27.04% (including surcharge and education Cess). 3. The assessee before us is a foreign company and tax resident of Hong Kong. It operates satellite television ....

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....; second, that, to quote the words of the Assessing Officer, "the franchise fees being in the nature of royalty and not being business profit, cannot be set off against the business loss". Aggrieved, the assessee carried the matter in appeal before the learned CIT(A). Learned CIT(A) noted that as a result of the assessment for the assessment year 2011-12 having been carried in appeal, the loss cla....

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....s a loss to the assessee........be carried forward to the following assessment year, and- (i) it shall be set off against the profits and gains, if any, of any business or profession carried on by him and assessable for that assessment year.....". Clearly, therefore, all that is necessary for the income to be set off must consist of the profits and gains of any business or profession carried by th....