ITO 8(1)(2), MUMBAI V. REED INFOMEDIA INDIA P.LTD, MUMBAI

ITA 2579/MUM/2015

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 1354 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 10 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-04-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: H
• Assessment Year: 2010-2011
• Appeal Filed On: 06-05-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: RAJESH LAKHARA
• Keywords: Unexplained cash credit; Related party transaction; Source of fund
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH I, MUMBAI BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER ITA NO.2259/M/2015 ASSESSMENT YEAR: 2010-11 M/S. REED INFOMEDIA INDIA PVT. LTD., 5 TH FLOOR, ONE INDIA BULL CENTRE TOWER 1C, SENAPATI BAPAT MARG, ELPHINSTONE ROAD, MUMBAI 400 013 PAN: AADCR2986G VS. INCOME TAX OFFICER 7(2)(1), MUMBAI (APPELLANT) (RESPONDENT) ITA NO.2579/M/2015 ASSESSMENT YEAR: 2010-11 INCOME TAX OFFICER 8(1)(2), ROOM NO.621-A, 6 TH FLOOR, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI-400 020 VS. M/S. REED INFOMEDIA INDIA PVT. LTD., 414, EMPIRE COMPLEX, SENAPATI BAPAT MARG, LOWER PAREL, MUMBAI 400 028 PAN: AADCR2986G (APPELLANT) (RESPONDENT) PRESENT FOR: ASSESSEE BY : SHRI VIJAY MEHTA, A.R. & SHRI RAJES H LAKHARA, A.R. REVENUE BY : SHRI SAURABHKUMAR RAI, D.R. DATE OF HEARING : 09.03.2017 DATE OF PRONOUNCEMENT : 03.04.2017 O R D E R PER SANJAY GARG, JUDICIAL MEMBER: THE ABOVE CAPTIONED CROSS APPEALS ONE BY THE ASSES SEE AND THE OTHER BY THE REVENUE HAVE BEEN PREFERRED AGAINST THE ORDER D ATED 19.02.2015 OF THE COMMISSIONER OF INCOME TAX (APPEALS) [HEREINAFTER R EFERRED TO AS THE CIT(A)]. FIRST WE TAKE UP REVENUES APPEAL BEARING ITA NO.2579/M/2015. ITA NO.2259/M/2015 ITA NO.2579/M/2015 M/S. REED INFOMEDIA INDIA PVT. LTD. 2 REVENUES APPEAL (ITA NO.2579/M/2015) 2. THE REVENUE IN ITS APPEAL HAS TAKEN THE FOLLOWIN G GROUNDS: 1. THE LEARNED CIT(A) HAS ERRED ON FACTS AND IN LA W IN RESTRICTING THE ADDITION MADE U/S.68 ON ACCOUNT OF INCREASE IN SHARE CAPITAL TO RS.1,96,00,000/- INSTEAD OF RS.4,00,00,0 00/- WITHOUT PROPERLY APPRECIATING THE FACTUAL AND LEGAL MATRIX AS CLEARLY BROUGHT OUT BY THE ASSESSING OFFICER IN THE ASSESSM ENT ORDER THAT THE ASSESSEE HAS INCREASED SHARE CAPITAL DURING THE YEAR FOR AN AMOUNT OF RS . 4, 00, 00, 000/-. 2. THE LEARNED CIT(A) HAS ERRED ON FACTS AND IN LAW IN RESTRICTING THE ADDITION MADE U/S.68 TO RS.1,96,00, 000/- ON ACCOUNT OF INCREASE IN SHARE CAPITAL INSPITE OF HOLDING THAT T HE ASSESSEE COULD NOT PROVE THE GENUINENESS OF THE TRANSACTION AS PER REQ UIREMENT OF SEC.68 AND THERE IS INCREASE OF RS. 4,00,00,000/- IN SHARE CAPITAL DURING PREVIOUS YEAR RELEVANT TO A.Y.2010-11 (SHARE CAPITAL WAS RS. 6,00,00,000/IN A.Y.2009-10 AND RS.10,00,00,000/- IN A.Y.2010-11). THE LD. CIT(A)'S ORDER IS CONTRARY TO LAW AND FACTS AND DESERVES TO BE SET ASIDE AND A.O.'S ORDER BE RESTORED. 3. THE LD. CIT(A)S ORDER IS CONTRARY TO LAW AND FA CTS AND DESERVES TO BE SET ASIDE AND A.O.S ORDER BE RESTORED. 4. THE APPELLANT CRAVES LEAVE TO AMEND OR ALTER ANY GROUND OR ADD A NEW GROUND THAT MAY BE NECESSARY. 3. THE BRIEF FACTS RELEVANT TO THE ISSUE UNDER CONS IDERATION ARE THAT THE ASSESSEE COMPANY IS A JOINT VENTURE OF TWO COMPANIE S I.E. M/S. REED ELSEVIER OVERSEAS BV (A FOREIGN COMPANY) WITH 51% SHARE CAPI TAL AND M/S. INFOMEDIA 18 LTD. (INDIAN COMPANY) WITH 49% SHARE CAPITAL. T HE ASSESSEE IS ENGAGED IN THE BUSINESS OF PUBLICATION OF MAGAZINE IN THE GEMS AND JEWELLERY SECTOR. FOR THE ASSESSMENT YEAR UNDER CONSIDERATION, THE AO NOT ED FROM THE BALANCE SHEET OF THE ASSESSEE THAT DURING THE YEAR, THE SHARE CAP ITAL OF THE ASSESSEE HAS BEEN INCREASED BY RS.4,00,00,000/- (RUPEES FOUR CRORES O NLY). HE ASKED THE ASSESSEE TO FURNISH NECESSARY DETAILS IN THIS RESPE CT. THE ASSESSEE ACCORDINGLY FURNISHED THE NECESSARY DETAILS TO THE AO INCLUDING THE NAMES OF THE SUBSCRIBERS, PAN NUMBERS, ANNUAL FINANCIAL REPORT O F SUBSCRIBERS, CASH FLOW STATEMENTS ETC. HOWEVER, THE AO WAS NOT SATISFIED BY THE DETAILS SUBMITTED BY THE ASSESSEE AND OBSERVED THAT THE ASSESSEE HAS FAI LED TO PROVE THE SOURCE, ITA NO.2259/M/2015 ITA NO.2579/M/2015 M/S. REED INFOMEDIA INDIA PVT. LTD. 3 IDENTITY OF THE SUBSCRIBERS AND THE GENUINENESS OF THE TRANSACTION. HE, THEREFORE, MADE THE ADDITION OF THE ABOVE AMOUNT OF RS.4,00,00,000/- AS UNEXPLAINED CREDITS UNDER SECTION 68 OF THE ACT INT O THE TAXABLE INCOME OF THE ASSESSEE. BEING AGGRIEVED BY THE ORDER OF THE AO, THE ASSESSEE PREFERRED APPEAL BEFORE THE LD. CIT(A). 4. IT WAS EXPLAINED BEFORE THE LD. CIT(A) THAT DURI NG THE YEAR UNDER CONSIDERATION, THE ASSESSEE HAD RECEIVED SHARE CAPI TAL MONEY TO THE TUNE OF RS.1,96,00,000/- ONLY FROM M/S. INFOMEDIA 18 LTD. I N CONSIDERATION FOR ISSUE OF RS.1,96,00,000/- EQUITY SHARES OF RS.10/- EACH. HOWEVER, THE ASSESSEE COMPANY HAD RECEIVED A SUM OF RS.2,04,00,000/- AS S HARE CAPITAL MONEY FROM THE FOREIGN COMPANY M/S. REED ELSEVIER OVERSEAS BV IN CONSIDERATION FOR ISSUE OF 20,40,000 EQUITY SHARES OF RS.10/- EACH DU RING THE PRECEDING ASSESSMENT YEAR 2009-10. THE ASSESSEE ALSO SUBMITT ED BEFORE THE LD. CIT(A) THAT THE NECESSARY DETAILS IN THIS RESPECT INCLUDIN G THE AUDITED ACCOUNTS OF THE ASSESSEE, THE DETAILS OF SHARE APPLICATION MONEY RE CEIVED ALONG WITH DETAILS OF SHARE HOLDING PATTERN, PAN AND ADDRESS OF SHAREHOLD ERS, BANK STATEMENT AND FORM NO.2 I.E. INTIMATION TO REGISTRAR OF COMPANIES FOR INCREASE IN SHARE CAPITAL ETC. WERE FURNISHED BEFORE THE AO DURING TH E A.Y. 2009-10 ALSO. THE SAID DETAILS WERE DULY VERIFIED BY THE AO AND AFTER THAT THE AO DID NOT MAKE ANY ADDITION IN RESPECT OF THE SHARE CAPITAL MONEY RECEIVED IN A.Y. 2009-10. THAT, EVEN OTHERWISE, NO ADDITION COULD HAVE BEEN M ADE BY THE AO IN THE RELEVANT ASSESSMENT YEAR 2010-11 IN RESPECT OF THE SAID AMOUNT. THE LD. CIT(A), AFTER CONSIDERING THE ABOVE SUBMISSIONS AND EVIDENCES ON THE FILE, HELD THAT IT WAS CLEAR FROM SCHEDULE H THAT THE F IGURE OF INVESTMENT AS ON 31.03.10 WAS RS.4,90,00,000/- WHEREAS THE FIGURE WA S RS.2,94,00,000/- AS ON 31.03.09; MEANING THEREBY THAT THERE WAS INTRODUCTI ON OF FRESH SHARE CAPITAL OF RS.1,96,00,000/- ONLY. HE, THEREFORE, HELD THAT NO ADDITION OF THE SAID AMOUNT OF RS.2,94,00,000/- WAS WARRANTED FOR THE YEAR UNDE R CONSIDERATION. THE LD. CIT(A), HOWEVER, HELD THAT THE ASSESSEE HAD NOT SUB MITTED THE BANK ACCOUNTS ITA NO.2259/M/2015 ITA NO.2579/M/2015 M/S. REED INFOMEDIA INDIA PVT. LTD. 4 AND CONFIRMATION FROM THE SUBSCRIBER REGARDING THE RECEIPT OF RS.1,96,00,000/- CLAIMED TO BE RECEIVED AS SHARE CAPITAL FROM ITS HO LDING COMPANY M/S. INFOMEDIA 18 LTD. DURING THE YEAR UNDER CONSIDERATI ON. HE, THEREFORE, UPHELD THE ADDITION OF RS.1,96,00,000/- OUT OF THE TOTAL A DDITION OF RS.4,00,00,000/- MADE BY THE AO. 5. BEFORE US THE LD. D.R. COULD NOT POINT OUT ANY D IFFERENTIATING NEW FACT WHICH MAY JUSTIFY OUR INFERENCE INTO THE OBSERVATIO N OF THE LD. CIT(A) REGARDING THE INTRODUCTION OF THE SHARE CAPITAL MON EY OF THE AMOUNT OF RS.2,94,00,000/- DURING THE YEAR ASSESSMENT YEAR 20 09-10 AND NOT FOR THE YEAR UNDER CONSIDERATION I.E. A.Y. 2010-11. MOREOVER, D URING THE ASSESSMENT PROCEEDINGS FOR THE EARLIER ASSESSMENT YEAR A.Y. 20 09-10, THIS ISSUE WAS DULY EXAMINED BY THE AO AND BEING SATISFIED, NO ADDITION S WERE MADE BY HIM. IN VIEW OF THIS, WE DO NOT FIND ANY INFIRMITY IN THE O RDER OF THE LD. CIT(A) WHILE DELETING THE ADDITION OF RS.2,94,00,000/- OUT OF TH E TOTAL DISPUTED ADDITION OF RS.4,00,00,000/-. 6. IT IS PERTINENT TO MENTION HERE THAT THE AO WHIL E COMPUTING THE INCOME OF THE ASSESSEE HAD WRONGLY MENTIONED THE FIGURE OF ADDITION OF RS.6 CRORE WHEREAS THE TOTAL SHARE CAPITAL INTRODUCED BY THE A SSESSEE WAS OF RS.4,00,00,000/-. THIS FACT HAS ALSO NOT BEEN DISP UTED BY THE REVENUE. WE, THEREFORE, DO NOT FIND ANY MERIT IN THE APPEAL OF T HE REVENUE REGARDING THE ACTION OF THE LD. CIT(A) IN DELETING THE ABOVE ADDI TION OF RS.2,94,00,000/-. NOW COMING TO THE ASSESSEES APPEAL BEARING ITA NO .2259/M/2015. ITA NO.2259/M/2015 (ASSESSEES APPEAL) 7. THE ASSESSEE IN ITS APPEAL HAS TAKEN THE FOLLOWI NG GROUNDS: 1. THAT ON FACTS AND IN LAW THE CIT (A) ERRED IN UPHOL DING ADDITION TO TOTAL INCOME OF RS.1.96 CRORES UNDER SECTION 68 OF THE IN COME TAX ACT. 1.1 THAT ON FACTS AND IN LAW THE CIT (A) ERRED IN H OLDING THAT THE APPELLANT HAD FAILED TO DISCHARGE ONUS CASTED UPON IT AS PER PROV ISIONS OF SECTION 68 OF THE INCOME TAX ACT. ITA NO.2259/M/2015 ITA NO.2579/M/2015 M/S. REED INFOMEDIA INDIA PVT. LTD. 5 2. THAT ON FACTS AND IN LAW THE CIT(A) ERRED IN UPH OLDING THE ACTION OF THE AO IN SUBJECTING TO TAX DIFFERENTIAL RECEIPTS (AS P ER AS-26 INFORMATION) OF RS.10,84,800/-. 2.1 THAT ON FACTS AND IN LAW THE CIT (A) ERRED IN N OT APPRECIATING THAT INCOME CORRESPONDING TO DIFFERENTIAL RECEIPTS OF RS.10,84, 800/- HAS BEEN OFFERED AND SUBJECTED TO TAX IN AY 2009-10. 3. THAT ON FACTS AND IN LAW THE AO/CIT (A) ERRED IN NOT ALLOWING SET OFF OF BROUGHT FORWARD LOSSES. 4. THAT ON FACTS AND IN LAW THE ORDERS PASSED BY AO AND THE CIT (A) ARE BAD IN LAW AND VOID AB-INITIO. THAT THE APPELLANT PRAYS FOR LEAVE TO ADD, ALTER, A MEND AND I OR VARY THE GROUND(S) OF APPEALS AT OR BEFORE THE TIME OF HEARI NG. GROUND NO.1 8. A PERUSAL OF THE GROUND NO.1 OF THE APPEAL REVEA LS THAT THE ASSESSEE HAS AGITATED THE CONFIRMATION OF THE REMAINING AMOUNT O F RS.1,96,00,000/- CLAIMED TO BE RECEIVED AS SHARE CAPITAL BY THE ASSESSEE FRO M M/S. INFOMEDIA 18 LTD. THE LD. A.R. OF THE ASSESSEE IN THIS RESPECT HAS BR OUGHT OUR ATTENTION TO PAGE NO.285 OF THE PAPER BOOK AND STATED THAT THE SAID A MOUNT WAS ADJUSTED AGAINST THE RUNNING ACCOUNT BETWEEN THE PARTIES AND THEREFO RE THERE WAS NO QUESTION OF SUBMITTING THE BANK ACCOUNTS. THE LD. A.R. HAS FUR THER SUBMITTED THAT THE NECESSARY DETAILS HAD ALREADY BEEN FURNISHED BY ASS ESSEE BEFORE THE AO SUCH AS THE NAME, ADDRESS, PAN AND SHAREHOLDING PATTERN OF THE SHAREHOLDER AND EVEN THE COPY OF LEDGER ACCOUNT AND ANNUAL FINANCIAL REP ORT FOR FINANCIAL YEAR 2009- 10 OF M/S. INFOMEDIA 18 LTD. THE LD. A.R. HAS ALSO INVITED OUR ATTENTION TO THE RELEVANT EVIDENCES ON THE FILE AND HAS SUBMITTED TH AT IN THE AUDITED FINANCIAL STATEMENT FOR THE FINANCIAL YEAR 2009-10 OF M/S. IN FOMEDIA 18 LTD. THE INVESTMENT MADE BY THE COMPANY HAS BEEN REFLECTED. FURTHER, THE TRANSACTION WAS DISCLOSED UNDER THE RELATED PARTY TRANSACTION INFORMATION IN THE FINANCIAL STATEMENT OF THE ASSESSEE COMPANY AND SIM ILARLY THE DETAILS OF TRANSACTION WERE ALSO DISCLOSED BY THE M/S. INFOMED IA 18 LTD. THE LD. A.R. OF THE ASSESSEE HAS FURTHER INVITED OUR ATTENTION TO P AGE 69 OF THE PAPER BOOK TO DEMONSTRATE THAT THE TRANSACTION DETAILS WERE ALSO DISCLOSED BY WAY OF CASH J ITA NO.2259/M/2015 ITA NO.2579/M/2015 M/S. REED INFOMEDIA INDIA PVT. LTD. 6 FLOW STATEMENT. EVEN THE INFORMATION ABOUT THE SOU RCE AND APPLICATION OF FUNDS OF M/S. INFOMEDIA 18 LTD. WAS ALSO PROVIDED T HROUGH CASH FLOW STATEMENT. HE, THEREFORE, HAS SUBMITTED THAT THE I NFORMATION ABOUT SOURCE OF FUNDS AND APPLICATION OF FUNDS WAS DULY PROVIDED TO THE AO. THE LD. A.R. HAS FURTHER SUBMITTED THAT SO FAR AS THE CONFIRMATION F ROM THE SUBSCRIBER WAS CONCERNED, THE SUBSCRIBER M/S. INFOMEDIA 18 LTD. HA S SUBMITTED THAT THE ABOVE DETAILS WERE DULY AVAILABLE IN THE FINANCIAL STATEM ENT OF THE SUBSCRIBER M/S. INFOMEDIA 18 LTD. MOREOVER, ALL THE RELEVANT DETAI LS SUCH AS ADDRESS, PAN, LEDGER ACCOUNT OF THE ASSESSEE COMPANY IN THE BOOKS OF M/S. INFOMEDIA 18 LTD. HAVE BEEN FILED AND THE AO HAD NOT DOUBTED THE SAME . MOREOVER, THE ASSESSEE HAD DISCHARGED THE BURDEN ON ITS PART AND THERE WAS NO CONTRARY EVIDENCE BEFORE THE AO TO DOUBT THE ABOVE TRANSACTION. 9. THE LD. D.R., ON THE OTHER HAND, HAS RELIED UPON THE FINDINGS OF THE LOWER AUTHORITIES. 10. WE HAVE HEARD THE RIVAL CONTENTIONS AND HAVE AL SO GONE THROUGH THE RECORDS. AS NOTED ABOVE, THE ASSESSEE HAS DULY FURN ISHED ALL THE DETAILS AND HAS ALSO EXPLAINED THAT THE SHARE APPLICATION MONEY WAS ADJUSTED AGAINST THE RUNNING ACCOUNT BETWEEN THE PARTIES. FURTHER, ALL THE NECESSARY DETAILS LIKE PAN NUMBER, ANNUAL FINANCIAL REPORT OF SUBSCRIBERS, CASH FLOW STATEMENTS ETC. WERE ALSO FILED AND THE INVESTMENT DULY SHOWN IN TH E ACCOUNTS/FINANCIAL STATEMENT OF THE INVESTOR COMPANY. UNDER THE CIRCU MSTANCES, WE DO NOT FIND ANY JUSTIFICATION ON THE PART OF THE LOWER AUTHORIT IES IN MAKING ADDITION OF THE ABOVE AMOUNT OF RS.1,96,00,000/- RECEIVED BY THE AS SESSEE AS SHARE APPLICATION MONEY FROM M/S. INFOMEDIA 18 LTD. THE ADDITION MAD E BY THE LOWER AUTHORITIES ON THIS ACCOUNT UNDER SECTION 68 OF THE ACT IS HEREBY ORDERED TO BE DELETED. GROUND NO.1 OF THE APPEAL IS THEREFORE AL LOWED IN FAVOUR OF THE ASSESSEE. GROUND NO.2 ITA NO.2259/M/2015 ITA NO.2579/M/2015 M/S. REED INFOMEDIA INDIA PVT. LTD. 7 11. VIDE GROUND NO.2, THE ASSESSEE HAS AGITATED THE ACTION OF THE LD. CIT(A) IN UPHOLDING THE ADDITION OF RS.10,84,800/- MADE BY THE AO ON ACCOUNT OF NON MATCHING/DIFFERENCE OF THE FIGURE PERTAINING TO FOR M 26AS. DURING THE ASSESSMENT PROCEEDINGS, THE AO FOUND THA T THE ASSESSEE DID NOT MAKE ANY CLAIM FOR TDS MADE OF RS.43,694/- ON T HE RECEIPT OF RS.10,84,800/- WHICH WERE REFLECTED IN FORM 26AS. THE AO OBSERVED THAT SINCE THE ASSESSEE DID NOT OFFER ANY EXPLANATION FO R THE SAME, HENCE THE SAME WERE DISCLOSED RECEIPTS OF THE ASSESSEE. HE, THERE FORE, MADE THE ADDITION OF THE SAID AMOUNT OF RS.10,84,800/- INTO THE INCOME OF TH E ASSESSEE. 12. IN APPEAL BEFORE THE LD. CIT(A), THE ASSESSEE S UBMITTED THAT THE SAID RECEIPTS WERE ACCOUNTED IN THE FINANCIAL YEAR 2008- 09 RELEVANT TO A.Y. 2009- 10. THE ASSESSEE IN THIS RESPECT ALSO FURNISHED TH E COPIES OF THE LEDGER ACCOUNTS OF THE RESPECTIVE PARTIES INTO THE ACCOUNT S OF THE ASSESSEE. THE LD. CIT(A), HOWEVER, OBSERVED THAT THE ASSESSEE HAD FAI LED TO ESTABLISH ONE TO ONE CORRELATION BETWEEN THE RECEIPTS UPON WHICH TDS WAS DEDUCTED BY THE RESPECTIVE PARTIES AND WITH THE INCOME ACCOUNTED FO R BY THE ASSESSEE FOR THE F.Y. 2008-09 RELEVANT TO A.Y. 2009-10. HE THEREFOR E, CONFIRMED THE ADDITION SO MADE BY THE AO. 13. BEFORE US, THE LD. A.R. OF THE ASSESSEE HAS SUB MITTED THAT THE AO HAD NOT ASKED FOR THE DETAILS AND INFORMATION PERTAININ G TO FORM 26AS FROM THE ASSESSEE. HOWEVER, WHILE PASSING THE ASSESSMENT OR DER, THE AO ADDED THE SAID AMOUNT INTO THE INCOME OF THE ASSESSEE. THE LD. A. R. HAS FURTHER SUBMITTED THAT THE RECEIPTS IN QUESTION PERTAINED TO THE INCO ME BOOKED IN F.Y. 2008-09 AND WHICH WAS OUTSTANDING AS ON 31.03.09. THE SAID INCOME WAS DULY ACCOUNTED IN THE F.Y. 2008-09. HOWEVER, THE CUSTOM ERS MIGHT HAVE ACCOUNTED THE EXPENSES IN NEXT YEAR. THEREFORE, THE SAID AMO UNT IS APPEARING IN FORM 26AS AS INCOME OF F.Y. 2009-10. THE LD. A.R. BRING ING OUR ATTENTION TO COPIES OF THE RELEVANT LEDGER ACCOUNTS HAS STATED T HAT ALL THE ENTRIES OF RECEIPTS ITA NO.2259/M/2015 ITA NO.2579/M/2015 M/S. REED INFOMEDIA INDIA PVT. LTD. 8 HAVE BEEN DULY ACCOUNTED FOR AND THAT THE MATTER MA Y BE RESTORED TO THE FILE OF THE AO FOR VERIFICATION AND RECONCILIATION OF THESE ENTRIES. 14. THE LD. D.R., ON THE OTHER HAND, HAS RELIED UPO N THE FINDINGS OF THE LOWER AUTHORITIES. AFTER CONSIDERING THE RELEVANT SUBMISSIONS, WE ARE OF THE VIEW THAT IF THE RECEIPTS HAVE ALREADY BEEN BOOKED BY THE ASSESSEE I N F.Y. 2008-09, THE SAME CANNOT BE BOOKED AS INCOME OF THE ASSESSEE FOR THE NEXT YEAR I.E. F.Y. 2009-10. HOWEVER, THE RELEVANT RECEIPTS/ENTRIES NEED TO BE V ERIFIED BY THE AO. WE ACCORDINGLY RESTORE THIS ISSUE TO THE FILE OF THE A O FOR RECONCILIATION OF THESE ENTRIES AND IF THE CLAIM OF THE ASSESSEE IS FOUND T O BE CORRECT, THEN NO ADDITION WILL BE MADE IN RESPECT OF THE RECEIPTS ALREADY BOO KED IN THE EARLIER ASSESSMENT YEAR. THIS ISSUE IS ACCORDINGLY TREATED AS ALLOWED IN FAVOUR OF THE ASSESSEE. GROUND NO.3 15. THE ASSESSEE HAS AGITATED THE ACTION OF THE LOW ER AUTHORITIES IN NOT ALLOWING THE SET OFF OF BROUGHT FORWARD LOSSES. TH E LD. A.R. HAS BROUGHT OUR ATTENTION TO THE PARA 6 OF THE IMPUGNED ORDER AND H AS STATED THAT THE LD. CIT(A) HAS SUMMARILY REJECTED THIS GROUND. HE HAS FURTHER SUBMITTED THAT EVEN NO INFORMATION WAS ASKED FOR BY THE AO FROM TH E ASSESSEE WHILE DENYING THE SAID CLAIM OF SET OFF OF BROUGHT FORWARD LOSSES . HE HAS FURTHER SUBMITTED THAT INFORMATION OF BROUGHT FORWARD LOSSES WAS VERY MUCH AVAILABLE ON RECORD BEFORE THE AO IN THE FORM OF SCHEDULE CFL OF THE E- RETURN OF INCOME. FURTHER, THE TAX AUDITOR HAS ALSO CERTIFIED THE DETAILS OF L OSSES AND THE COPY OF TAX AUDIT REPORT WAS ALSO AVAILABLE ON RECORD. EVEN THE CARR Y FORWARD OF LOSSES COULD VERY WELL BE VERIFIED BY THE AO FROM THE EARLIER YE AR ASSESSMENT ORDERS. HE HAS FURTHER SUBMITTED THAT EVEN THE FACTUM OF BROUG HT FORWARD LOSSES CAN BE WELL VERIFIED BY THE AO AT THIS STAGE ALSO. CONSID ERING THE ABOVE SUBMISSIONS OF THE LD. A.R., THIS ISSUE IS ALSO RESTORED TO THE FILE OF THE AO FOR VERIFICATION AND IF THE CLAIM OF THE ASSESSEE IS FOUND TO BE COR RECT, THEN TO ALLOW THE SAME IN ITA NO.2259/M/2015 ITA NO.2579/M/2015 M/S. REED INFOMEDIA INDIA PVT. LTD. 9 ACCORDANCE WITH LAW. IN VIEW OF OUR FINDINGS GIVEN ABOVE, THE APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED. 16. IN THE RESULT, APPEAL OF THE REVENUE IS HEREBY DISMISSED AND THAT OF THE ASSESSEE IS HEREBY TREATED AS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 03.04.2017. SD/- SD/- (MANOJ KUMAR AGGARWAL) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 03.04.2017. * KISHORE, SR. P.S. COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT (A) CONCERNED, MUMBAI THE DR CONCERNED BENCH //TRUE COPY// [ BY ORD ER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.