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TMI Blog2018 (10) TMI 1184X X X X Extracts X X X X X X X X Extracts X X X X ..... ed of by this common order for the sake of convenience and brevity. ITA No. 1095/DEL/2014 [Assessee's appeal] 2. In addition to the challenge of the disallowance, the assessee has also challenged the reopening of the assessment u/s 147 of the Act. Since this goes to the root of the matter, we will first address to the challenge of reopening of the assessment. 3. The facts on record show that the original assessment was framed u/s 143(3) of the Act vide order dated 30.12.2008. 4. Subsequently, vide notice dated 14.09.2011, the Assessing Officer sought to reopen the assessment. The reasons recorded for reopening of assessment read as under: "Reasons recorded for re-opening u/s 147/148 of the IT Act, 1961 in the case of M/s. Yamaha Moto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considered by the Assessing Officer during original assessment proceedings by raising specific queries to which the assessee has not only furnished specific reply, but also relevant supporting evidences. 6. We find that vide notice dated 4.7.2008 issued u/s 142(1) of the Act, which is exhibited at pages 155 to 160 of the paper book, the Assessing Officer had raised, inter alia, the following queries: "Point 7 Give nature and details of the expenses claimed in the P & L A/c in respect of the following expenses: (a) Give breakup of salary persons wise with designation for persons drawing more than 10 lacs yearly. Gratuity and other such payments be given separately. (b) Loss on Foreign Exchange Fluctuation - Give evidence of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... B was also supplied. Vide reply dated 10.10.2008, the assessee furnished details of advertisement and sales promotion expenses. Such details are exhibited at pages 238 to 255 of the paper book and the relevant extract of the audited report is at pages 111 and 113 of the paper book. The analysis of international transactions, undertaken by the assessee, are exhibited at pages 114 to 118 of the paper book, and the same read as under: Nature of Transaction Amount as recorded in the books of account (in Rs.) Amount computed as per arm's length (in Rs.) Method used for justification Financial support received from associated/mterprise towards advertisement activities 10,97,55,358/- 10,97,55,358/- Financial support received ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the assessment, the Assessing Officer had observed that the assessee had claimed and allowed advertisement expenses of Rs. 23.31 crores out of which the assessee was reimbursed Rs. 10.97 crores and balance of Rs. 11.50 crores has been shown under the head "Loan and Advance" recovered towards reimbursement. This observation of the Assessing Officer for reopening the assessment is factually incorrect. Advertisement and Publicity expenses are at Rs. 10.66 crores and selling and distribution expenses are at Rs. 24.76 crores. The balance of advertisement and publicity expenses is covered by financial support of Rs. 10.97 crores received from AE Yamaha Motor Company, Japan. It appears that the Assessing Officer has taken the figure from the b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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