TaxTMI 
TaxTMI 
TaxTMI 
2024 (7) TMI 1047
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....9(1) of the Act. However, based on AIR information available in AIMS module of ITBA, the Assessing Officer noticed that assessee has entered into certain financial transactions aggregating to Rs. 5,11,77,717. Since, the Assessing Officer was of the view that the activities undertaken by assessee are income generating activities, whereas, the assessee has not filed any return of income in India, the Assessing Officer reopened the assessment under Section 147 of the Act. In response to the notice issued under Section 148 of the Act, assessee filed its return of income and also raised objections against reopening of assessment under Section 147 of the Act. It was the case of the assessee that it had entered into an Asian Broadcast Agreement with ESPN on 04.11.2011 granting certain rights for telecasting certain matches played in Australia. It was pleaded, ESPN Star Sports is a partnership incorporated in USA and has principal palace of business at Singapore. It was submitted by the assessee that the fee received by the assessee from another non-resident company is not subject to tax in India. It was further submitted, even otherwise also, the fee received cannot be treated as royalty ....
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.... 5. In view of the above, I have reason to believe that the income during the FY 2012-13 relevant to A.Y. 2013-14 has escaped assessment as defined u/s. 147 of the Income-Tax Act, 1961. Accordingly, notice u/s. 148 of the Act may be issued in this case. 6. In this case, the only requirement to initiate proceedings u/s. 147 is reason to believe which has been recorded above. This case is beyond four years & within six years from the end of the assessment year under consideration. Therefore, approval u/s 151(1) of the Act is solicited. Accordingly, put for your kind perusal and approval please. Sd/- (Praduman Meena) Dy.Commissioner of Income Tax Circle-1(2)(1), Intl. Tax, New Delhi" 7. In this case also, the Assessing Officer has stated that, though, the assessee has filed TDS return under Section 195 for Rs. 3,19,44,410 and under Section 194E of Rs. 1,92,33,307, however, the assessee didn't file any return of income. However, it is a fact on record, in the year under consideration, neither the assessee has made remittances to anyone outside India or in India nor deducted any tax at source. Therefore, there is no question of assessee filing any TDS return. This fact has bee....
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.... u/s 151(1) of the Act is solicited. Accordingly, put for your kind perusal and approval please. Sd/- Dy.Commissioner of Income Tax C ircle-1(2)(1), Intl. Tax, New Delhi" 9. On going through the reasons recorded, we are of the view that they are replete with various factors misstatement/inaccuracy and silly mistakes, though, the Assessing Officer has reopened the assessment for assessment year 2013-14, however, the heading of the reasons recorded refers to assessment year 2014-15. Even, the name of the assessee has been. In a paragraph 3 of the reasons recorded, the Assessing Officer has very clearly and wrongly mentioned categorically stated that, though, the assessee had filed TDS return under Section 194E of Rs.4,68,56,484 and under Section 195 of Rs.1,07,16,433, however, it didn't file any return of income. As a result of which, genuineness of financial transaction business activities of the assessee could not be ascertained. In paragraph 4 of the reasons recorded, the Assessing Officer has mentioned filing of return of income by M/s. Cricket Australia. Whereas, admitted facts are, the assessee has not filed any TDS return whatsoever under Section 194E or section 195 of t....
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....proval under Section 151 of the Act by the higher authorities in the matter of reopening of assessment under Section 147 of the Act is only for the purposes of putting place a system of change and measure so that the Assessing Officer while reopening of assessment under Section 147 of the Act doesn't act in an arbitrary and highhanded manner. Therefore, the burden of proof on the approving authority is honourious as based on the reasons recorded by the Assessing Officer for reopening of assessment, approving authority has to find out whether a case for reopening of assessment is made out. In the facts of the present appeal, undoubtedly, the reasons recorded by the Assessing Officer certainly do not make out a case for reopening of assessment under Section 147 of the Act. However, without examining the facts on record, both the Additional CIT and CIT have granted approval under Section 151 of the Act. Granting approval under Section 151 of the Act is not an empty formality. Approval has to be granted with caution and proper application of mind to the facts and material on record, to prevent to miscarriage of justice as reopening of assessment involves reopening of an already con....