| Case ID |
d83a695a-45ba-4acc-bdf0-5383cfbe2c56 |
| Body |
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| Case Number |
WP(C) 1874/2013 and WP(C) 1984/2014 |
| Decision Date |
Jan 01, 2016 |
| Hearing Date |
Jan 01, 2016 |
| Decision |
The court held that the Assessing Officer could not reopen the assessment based on the same material that was already available during the original assessment. The principle of 'change of opinion' applied, as the Assessing Officer had previously formed an opinion regarding the taxation of advertisement and distribution revenue based on the Mutual Agreement Procedure (MAP) resolution. The court set aside the impugned notices and orders, concluding that the reopening of assessments was not permissible under the law. |
| Summary |
In the case of Turner Broadcasting Systems Asia Pacific Inc. vs. Deputy Director of Income Tax, the Delhi High Court dealt with issues related to the Income Tax Act, 1961, particularly focusing on sections 9, 115A, and 147. The case revolved around the taxation of advertisement and distribution revenue earned by the petitioner from an Indian company. The Assessing Officer initially determined that only 10% of the total revenue was taxable based on a Mutual Agreement Procedure (MAP) resolution between India and the USA for prior assessment years. However, the AO later attempted to reopen the assessment for the years 2007-08 and 2008-09, claiming that the MAP resolution only applied to earlier years, which led to the case being brought before the High Court. The court ruled that no new information had been presented to justify the reopening of the assessment, emphasizing that it was merely a change of opinion based on previously considered material. This case underscores the significance of the principles surrounding assessment reopening and the need for new evidence to substantiate such actions, particularly in international taxation contexts. Keywords: Income Tax, Mutual Agreement Procedure, Delhi High Court, Taxation, Advertisement Revenue. |
| Court |
Delhi High Court
|
| Entities Involved |
Turner International India Private Limited
|
| Judges |
Badar Durrez Ahmed,
Sanjeev Sachdeva
|
| Lawyers |
M.S. Syali,
Mayank Nagi,
Ms. Husnal Syali,
Harkunal Singh,
Rohit Madan,
Ruchir Bhatia,
Akash Vajpai,
Alay Kshatriya
|
| Petitioners |
Turner Broadcasting Systems Asia Pacific Inc.
|
| Respondents |
Deputy Director of Income Tax
|
| Citations |
2016 SLD 70 = (2016) 380 ITR 412
|
| Other Citations |
CIT v. Usha International Ltd. [2012] 348 ITR 485/210 Taxman 188/25 taxmann.com 200 (Delhi) (FB),
Jindal Photo Films Ltd. v. Dy. CIT [1999] 234 ITR 170/[1998] 105 Taxman 386 (Delhi)
|
| Laws Involved |
Income Tax Act, 1961
|
| Sections |
9,
115A,
147
|