CIT vs. SHARP BUSINESS SYSTEM INDIA LTD

IN THE HIGH COURT OF DELHI AT NEW DELHI 44. ITA 1130/2010 . CIT ..... Appellant Through: Mrs. Suruchi Aggarwal, Adv. . versus . SHARP BUSINESS SYSTEM INDIA LTD ..... Respondent Through: None . CORAM: HON'BLE THE CHIEF JUSTICE . . HON'BLE MR. JUSTICE MANMOHAN . O R D E R 09.08.2010 . 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 ITA 1130/2010 Page 1 of 3 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?? . 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 ITA 1130/2010 Page 2 of 3 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. . CHIEF JUSTICE . . MANMOHAN, J AUGUST 09, 2010 pk . . . . . . . . . ITA 1130/2010 Page 3 of 3