Principal Commissioner of Income-tax, Delhi-2 v. Bharti Airtel Ltd. (Formerly Bharti Cellular Ltd.)
[Citation -2017-LL-1031-8]

Citation 2017-LL-1031-8
Appellant Name Principal Commissioner of Income-tax, Delhi-2
Respondent Name Bharti Airtel Ltd. (Formerly Bharti Cellular Ltd.)
Court HIGH COURT OF DELHI AT NEW DELHI
Relevant Act Income-tax
Date of Order 31/10/2017
Judgment View Judgment
Keyword Tags revenue expenditure • question of law • book profit • change of opinion • tangible material
Bot Summary: The Revenue is aggrieved by the order of the ITAT which set aside the re-assessment order made by the Assessing Officer. This was assessed under the normal provisions of the Income Tax and at book profit of 1,05,53,29,112 under Section 115JB through an order finalized under Section 153. This was after the Assessing Officer considered the claim by the assessee to treat software expenses to the tune of 5.44 crores as administrative and other expenditure. The assessment was sought to be reopened and finalized under Section 147/148. The CIT held that the ITA 919/2017 Page 1 reassessment concluded was contrary to the provisions of Section 147/148 as it amounted to change of opinion. The Revenue urges that on the merits the issue of treatment of such software expenses as revenue expenditure is pending before this Court under Section 260A for the previous years. This Court is of the opinion that the ITAT s impugned order is unexceptionable because it is premised upon the circumstance that in the absence of any fresh tangible material, it was not open, on mere re-appreciation of the existing circumstances, to reopen the concluded scrutiny assessment.


$ 20 * IN HIGH COURT OF DELHI AT NEW DELHI + ITA 919/2017, CM APPL.39108-39110/2017 PRINCIPAL COMMISSIONER OF INCOME TAX, DELHI-2 ..... Appellant Through: Mr. Rahul Kaushik, Sr. Standing Counsel. versus BHARTI AIRTEL LTD.(FORMERLY BHARTI CELLULAR LTD) ..... Respondent Through: Ms. Kavita Jha with Ms. Shivani Khandekar, Advocates. CORAM: HON'BLE MR. JUSTICE S. RAVINDRA BHAT HON'BLE MR. JUSTICE SANJEEV SACHDEVA ORDER % 31.10.2017 1. Revenue is aggrieved by order of ITAT which set aside re-assessment order made by Assessing Officer. 2. facts are that assessee filed return for AY 2002- 2003. This was assessed under normal provisions of Income Tax and at book profit of `1,05,53,29,112 under Section 115JB through order finalized under Section 153 (3). This was after Assessing Officer considered claim by assessee to treat software expenses to tune of `5.44 crores as administrative and other expenditure. assessment was sought to be reopened and finalized under Section 147/148. CIT (A) held that ITA 919/2017 Page 1 reassessment concluded was contrary to provisions of Section 147/148 as it amounted to change of opinion. ITAT affirmed that finding. 3. Revenue urges that on merits issue of treatment of such software expenses as revenue expenditure is pending before this Court under Section 260A for previous years. 4. This Court is of opinion that ITAT s impugned order is unexceptionable because it is premised upon circumstance that in absence of any fresh tangible material, it was not open, on mere re-appreciation of existing circumstances, to reopen concluded scrutiny assessment. ITAT s reasoning cannot, therefore, be faulted. No question of law arises. appeal is, therefore, dismissed. S. RAVINDRA BHAT, J SANJEEV SACHDEVA, J OCTOBER 31, 2017 /vikas/ ITA 919/2017 Page 2 Principal Commissioner of Income-tax, Delhi-2 v. Bharti Airtel Ltd. (Formerly Bharti Cellular Ltd.)
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