FRANKLIN TEMPLETON ASSET MANAGEMENT (INDIA) P.LTD,MUMBAI vs. DCIT RG 6(3)(1), MUMBAI

PDF · subscribers
ITA 1597/MUM/2017Status: DisposedITAT Mumbai05 September 2018AY 2011-123 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the revised return was prima facie valid and the AO had not provided reasons for not considering it. The Tribunal noted that similar claims for depreciation on goodwill were allowed in previous assessment years.

What were the facts?

The assessee filed a revised return of income claiming depreciation on goodwill arising from an amalgamation. The Assessing Officer (AO) and the CIT(A) did not consider this revised return.

What were the issues?

Whether the AO and CIT(A) erred in not considering the assessee's revised return of income and the consequential claim for depreciation on goodwill.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “F” BENCH, MUMBAI

Before: SHRI SAKTIJIT DEY, JM & SHRI MANOJ KUMAR AGGARWAL, AM

Per Manoj Kumar Aggarwal (Accountant Member)

1.

Aforesaid appeal by assessee for Assessment Year [AY] 2011-12 contest the order of Ld. Commissioner of Income-Tax (Appeals)-12 [CIT(A)], Mumbai, Appeal No.CIT(A)-12/DCIT-6(3)(1)/90/15-16 dated 16/12/2016 qua non consideration of revised return filed by the assessee and non-allowance of depreciation.

ITA.No.1597/Mum/2017 Franklin Templeton Asset Management (India) Pvt.Ltd. Assessment Year- 2011-12 2.1 The assessee being resident corporate assessee was assessed u/s 143(3) read with Section 144C on 03/03/2015 wherein the income of the assessee was assessed at Rs.194.70 crores after sole disallowance u/s 14A for Rs.18.67 Lacs as against returned income of Rs.194.52 crores e-filed by the assessee on 28/11/2011. 2.2 The assessee is aggrieved by non-consideration of revised return of income as filed by the assessee on 28/03/2013. In the revised return of income, the assessee has claimed deprecation of Rs.6.19 crores on goodwill as arisen to the assessee consequent to amalgamation of another entity namely Franklin Templeton AMC Limited w.e.f. 26/07/2002. The Ld. CIT(A) has not adjudicated this ground as raised by the assessee before him since Ld. AO did not consider the revised return of income filed by the assessee. Aggrieved, the assessee is in further appeal before us.

3.

The Ld. Auhtorized Representative for Assessee [AR], Shri Madhur Agrwal pointed out that the assessee revised his return of income which was a valid return and therefore, lower authorities, without assigning any reasons, erred in not considering the same. It was further submitted that the claim of the assessee qua depreciation on goodwill has been accepted by the Tribunal for AY 2005-06 & 2010-11. The Ld. Sr. DR, Ms. Pooja Swaroop, submitted that no whisper with respect to revised return of income has been made by Ld. AO in the quantum assessment order.

4.

Upon due consideration, we find that the assessee has filed revised return of income on 28/03/2013 which, prima facie, is a valid return. In the revised return of income, it is noted that the assessee has claimed depreciation @25% amounting to Rs.6.19 crores on written

More judgments on Section 144C

All 3,699 judgments and leading authorities on Section 144C →

Recent GST High Court judgments

Search GST case law →