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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 ..... ssessing Officer to initiate a proceeding u/s 147. A perusal of the reasons for reopening shows that there was no new tangible material evidence which prompted the AO to issue notice for reopening of the assessment. Kelvinator of India Ltd [2010 (1) TMI 11 - SUPREME COURT OF INDIA] to be followed. In his reasons for reopening the assessment AO had observed that the assessee had claimed and allowed advertisement expenses of ₹ 23.31 crores out of which the assessee was reimbursed ₹ 10.97 crores and balance of ₹ 11.50 crores has been shown under the head “Loan and Advance” recovered towards reimbursement. This observation of the AO for reopening the assessment is factually incorrect. Advertisement and Publicity expenses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3(3) r.w.s 144C(4) of the Income-tax Act, 1961 [hereinafter referred to as 'the Act]' pertaining to A.Y 2011-12. Both these appeals were heard together and are being disposed 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 sou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a Motor Co., Japan the same should have been disallowed. 5. Before us, the ld. AR for the assessee vehemently contended that the issues, which prompted the Assessing Officer to reopen the assessment were specifically 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 expe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... year under consideration, the only international transaction entered into by the assessee was in the form of financial support received from parent company towards advertisement and other sales promotion expenses amounting to ₹ 10,97,55,358/-. Copy of form No. 3CEB 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sons for reopening shows that there was no new tangible material evidence which prompted the Assessing Officer to issue notice for reopening of the assessment. For this proposition, we derive support from the decision of the Hon'ble Jurisdictional High Court of Delhi in the case of Kelvinator of India Ltd 256 ITR 1 which was affirmed by the Hon'ble Supreme Court in 320 ITR 561. 11. In his reasons for reopening the assessment, the Assessing Officer had observed that the assessee had claimed and allowed advertisement expenses of ₹ 23.31 crores out of which the assessee was reimbursed ₹ 10.97 crores and balance of ₹ 11.50 crores has been shown under the head Loan and Advance recovered towards reimbursement. This ..... X X X X Extracts X X X X X X X X Extracts X X X X
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