IN THE HIGH COURT OF DELHI AT NEW DELHI
44.
ITA 1130/2010
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CIT .....
Appellant
Through: Mrs. Suruchi Aggarwal, Adv.
.
versus
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SHARP BUSINESS SYSTEM INDIA LTD ..... Respondent
Through: None
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CORAM:
HON'BLE THE CHIEF JUSTICE
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HON'BLE MR. JUSTICE MANMOHAN
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O R D E R
09.08.2010
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Heard Mrs. Suruchi Aggarwal, learned counsel for the revenue on the
question of admission.
The present appeal has been preferred under Section 260A of the Income
Tax Act, 1961 questioning the legal propriety of the order dated 15.1.2010
passed by the Income Tax Appellate Tribunal, Delhi Bench ?G?, New Delhi (for
short ?the tribunal?) in ITA No. 2772/Del/2009 pertaining to assessment year
2001-02. It is worth noting, the revenue has proposed the following substantial
questions of law:
?i) Whether ITAT could have held that the assessee has made a complete and
true disclosure of information especially in view of the fact that
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Income Tax Act does not recognize the term ?deferred revenue expenses? and was
excessive allowance of advertisement expenditure?
ii) Whether showing deferred revenue expenses in the profit and loss
account and claiming excessive advertisement expenditure amounts to full and
true disclosure of facts and does not amount to furnishing inaccurate
particulars and falls under Section 148 of the Income Tax Act?
iii) Whether the order of the ITAT is perverse as it has ignored the
relevant facts on record??
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To appreciate the substantial questions of law that have been sought to
be framed by this Court, we have perused the order passed by the authorities
below. On a scrutiny of the order passed by the tribunal, it is perceptible
that the tribunal has analyzed the facts and has held that the assessee had
disclosed all the details relevant to its claim for advertisement expenses and
the assessing officer had investigated the said claim by raising a specific
query in the show cause notice that the assessee had replied to the query and
explained the nature of expenses and, hence, there was no default at the end of
the assessee to disclose all material facts fully truly for its assessment; that
the notice under Section 148 had been issued after expiry of four years
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from the end of the relevant assessment year and, therefore, the assessing
officer could not have proceeded after expiry of four years from the end of the
relevant year inasmuch as there was no material to come to hold that the income
chargeable to tax had escaped assessment for such assessment year by reason of
failure on the part of the assessee to disclose fully and truly all material
facts but, on the contrary, the assessee had disclosed all the facts that was
earlier appreciated by the assessing officer. In our considered opinion, the
view expressed by the tribunal that the notice issued under Section 148 was
beyond the period of limitation is justified and, therefore, no substantial
question of law emerges for consideration in this appeal.
In the result, the appeal, being devoid of merit, stands dismissed in
limine.
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CHIEF JUSTICE
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MANMOHAN, J
AUGUST 09, 2010
pk
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