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

ITA 1597/MUM/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 1675 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-09-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 08-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: POOJASWAROOP LD SR DR
• Assessee Lawyers: MADHUR AGRAWAL LD
• Keywords: Depreciation; Revised return
• Section: 143(3); 14A

Judgement Text

ITA NO.1597/MUM/2017 FRANKLIN TEMPLETON ASSET MANAGEMENT (INDIA) PVT.LTD . ASSESSMENT YEAR- 2011-12 IN THE INCOME TAX APPELLATE TRIBUNAL F BENCH, MUMBAI , BEFORE SHRI SAKTIJIT DEY, JM AND SHRI MANOJ KUMAR AGGARWAL, AM I.T.A. NO.1597/MUM/2017 ( ASSESSMENT YEAR: 2011-12) FRANKLIN TEMPLETON ASSET MANAGEMENT (INDIA) PRIVATE LTD. 12 TH & 13 TH FLOOR, INDIABULLS FINANCE CENTRE TOWER 2, SENAPATI BAPAT MARG ELPHINSTONE(W),MUMBAI 400 013 VS. DEPUTY COMMISSIONER OF INCOME TAX RANGE-6(3)(1) ROOM NO. 506, 5 TH FLOOR AAYKAR BHAVAN, M.K.ROAD MUMBAI-400 020 ! ' PAN/GIR NO. AAACT-1609-B ( !# APPELLANT ) : ( $%!# RESPONDENT ) ASSESSEE BY : MADHUR AGRAWAL, LD.AR REVENUE BY : POOJA SWAROOP, LD. SR.DR & DATE OF HEARING : 23/07/2018 '() / DATE OF PRONOUNCEMENT : 05/09/2018 O R D E R 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 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 INCOM E 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. I N THE REVISED RETURN OF INCOME, THE ASSESSEE HAS CLAIMED DEPRECATION OF RS.6.19 CRORES ON GOODWILL AS ARISEN TO THE ASSESSEE CONSEQUENT TO AM ALGAMATION 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 CONSID ER THE REVISED RETURN OF INCOME FILED BY THE ASSESSEE. AGGRIEVED, THE ASS ESSEE 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 R ETURN OF INCOME HAS BEEN MADE BY LD. AO IN THE QUANTUM AS SESSMENT ORDER. 4. UPON DUE CONSIDERATION, WE FIND THAT THE ASSESSE E 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 NOTE D THAT THE ASSESSEE HAS CLAIMED DEPRECIATION @25% AMOUNTING TO RS.6.19 CROR ES ON WRITTEN ITA.NO.1597/MUM/2017 FRANKLIN TEMPLETON ASSET MANAGEMENT (INDIA) PVT.LTD . ASSESSMENT YEAR- 2011-12 3 DOWN VALUE [WDV] OF INTANGIBLE ASSETS OF RS. 24.78 CRORES. THE LD. A O, WITHOUT ASSIGNING ANY VALID REASON, HAS NOT CONSIDE RED THE REVISED RETURN OF INCOME FILED BY THE ASSESSEE. A CURSORY PERUSAL OF THE TRIBUNAL ORDERS FOR AYS 2005-06 & 2010-11 [ITA NO. 4068/MUM/2011 DATE 03/08/2016 & ITA NO.90/MUM/2016 DATED 13/12/2017] AS PLACED ON RECORD, REVEAL THAT THE ASSESSEES CLAIM AS TO DEPRECIATION ON GOODWILL HAS BEEN ALLOWED BY THE TRIBUNAL IN BOTH THE YEARS. 5. CONSIDERING THE OVERALL FACTUAL MATRIX, THE MATT ER STAND REMITTED BACK TO THE FILE OF LD. AO TO CONSIDER THE REVISED RETURN OF INCOME AS FILED BY THE ASSESSEE ON 28/03/2013 AND DECIDE THE ADDITI ONAL CLAIM AS RAISED THEREIN, AS PER LAW. THE ASSESSEE IS DIRECTED TO PR OVIDE REQUISITE DOCUMENTARY EVIDENCES, IN THIS REGARD, TO SUBSTANTI ATE HIS CLAIM. 6. THE ASSESSEES APPEAL STAND ALLOWED FOR STATISTI CAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 05 TH SEPTEMBER, 2018. SD/- SD/- (SAKTIJIT DEY) (MAN OJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER *& MUMBAI; DATED : 05.09.2018 SR.PS:-THIRUMALESH ! COPY OF THE ORDER FORWARDED TO : 1. !# / THE APPELLANT 2. $%!# / THE RESPONDENT 3. / THE CIT(A) 4. / CIT CONCERNED 5. + ,$ - -) *& / DR, ITAT, MUMBAI 6. , ./0 & GUARD FILE ' / BY ORDER, # '$% (DY./ASSTT.REGISTRAR) *& / ITAT, MUMBAI