9911796707
TMI Blog2022 (12) TMI 571X X X X Extracts X X X X X X X X Extracts X X X X ..... t assessment year . Clearly, therefore, all that is necessary for the income to be set off must consist of the profits and gains of any business or profession carried by the assessee and assessable for that assessment year. On the facts of the present case, there is not even a dispute that the franchise fee is earned by the assessee in the course of its business and is, therefore, assessable as such. The only issue, as raised by the Assessing Officer, is with respect to the rate at which this franchise fee is taxable, but then the rate of taxation is, in our considered view, not a relevant factor so far as eligibility of income for set-off is concerned. We also see no conflict in an income being taxable under the head profits and gai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iness income which is taxed at 42.23% (including surcharge and education cess). 2. In the facts Circumstances of the case, Ld. CIT(A) has erred in not appreciating that brought forward business loss of AY 2011-12 has resulted from Sale of advertisement, distribution of channels and syndication of content treated as receipts from business and profession taxed at 42.23% (including surcharge and education cess) while the current year income is the receipt from Franchise Fees which in the nature of Royalty income and taxed on a gross basis in accordance with the provisions of Section 115A(1) (b) of the Act at the rate of 27.04% (including surcharge and education Cess). 3. The assessee before us is a foreign company and tax resid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account legal procedures as per the Income Tax Act . The Assessing Officer is aggrieved of the relief so granted by the CIT(A), and is in appeal before us. 4. We have heard the rival contentions, perused the material on record and duly considered the facts of the case in the light of the applicable legal position. 5. We find that Section 72(1), as it stood at the relevant point of time, inter alia provided that, Where for any assessment year, the net result of the computation under the head Profits and gains of business or profession is a loss to the assessee ..be carried forward to the following assessment year, and- (i) it shall be set off against the profits and gains, if any, of any business or profession carried on by him a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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