TaxTMI 
TaxTMI 
2025 (4) TMI 348
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....der section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as 'the Act'). 2. Heard both the parties at length. Case file perused. 3. This assessee's appeal raises the following substantive grounds: "1. That on the facts and circumstances of the case, the order dated 28.08.2018 passed by the learned Commissioner of Income Tax (Appeals) ['CIT(A)'] is without judicious appreciation of the facts and positon in law, and thus, erroneous insofar as the same upholds the order dated 31.08.2016 passed by the Assessing Officer ['AO']. 2. That the CIT(A) erred on facts and in law in confirming the disallowance of Rs. 3,62,94,780 being the business expenditure incurred by the Appellant, and claimed as....
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....t did not earn any exempt income during the relevant year. 4.1 Without prejudice, that CIT (A) erred in confirming the action of the AO in invoking the provisions of Section 14A of the Act without appreciating that no satisfaction was recorded having regard to the books of accounts of the Appellant, that certain expenditure was actually incurred for earning any exempt income. That the appellant seeks leave to add, alter, amend or withdraw any ground of appeal before or at the time of hearing of this appeal." 4. We now advert to the basic relevant facts qua this assessee's instant first and foremost substantive ground claiming business expenditure of Rs. 3,62,94,780/-; made by the Assessing Officer and upheld in the lowe....
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....ous companies was an essential business activity and was in furtherance of the main business. 4.1.2 I have considered the assessment order and the submissions of the appellant. It is to be noted that as per the memorandum of Association, the main object of the assessee company has been stated to be to carry on the business of development, establishment and running of networks and distribution of non-news and current affairs television channels. arranging band placements, seeding of set-top boxes etc. within India and abroad across different mediums etc. Another of the main objects is to produce, buy, sell, import, export or otherwise deal in television programs etc. and to carry on the business of consultancy and management of proj....
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....he Revenue's case accordingly is that once the assessee was only a company, holding investments in subsidiaries, it could not be held as entitled for the expenditure claim in question. This is what leaves the assessee aggrieved. 6. We have given our thoughtful consideration to the assessee's and Revenue's vehement rival submissions. We find no reason to sustain the impugned disallowance. Learned counsel first of all takes us to the Assessing Officer's section 143(3) assessment for AY 2012-13 accepting this very expenditure claim. He next quotes various judicial precedents i.e Mazagaon Dock Ltd. Vs. CIT (1958) 34 ITR 368 (SC); CIT Vs. Upasana Hospital, (1997) 225 ITR 845 (Ker); CIT Vs. Distributors (Baroda) (P.) Ltd. (1972) 83 ITR 377 (SC....