Case Law Details
Knight Riders Sports Pvt. Ltd. Vs ACIT (Bombay High Court)
Bombay High Court held that no assessment can be reopened merely on the basis of change of opinion. Accordingly, initiation of re-assessment proceedings under section 148 of the Income Tax Act is unsustainable in law.
Facts- Petitioner carried on the business of operating and running a team in the Indian Premier League, i.e., Kolkata Knight Riders. During the years Petitioner paid a sum of Rs.3,04,85,970/- as management fees towards consultancy and team management fees. A sum of Rs. 1.90 crores was paid as consultancy fees to one Insignia Sports International Ltd.
During the course of assessment proceedings, Petitioner received various notices u/s. 142(1). In the notice, the petitioner was called upon to furnish in writing and verify in the prescribed manner information to justify the outward remittances to any non-resident (not being a company) or to a foreign company, and in that regard, also submit relevant 15CA and 15CB certificates. Petitioner provided details of the expenses that were incurred by non residents/foreign company. As regards Form 15CA and Form 15CB Petitioner stated that since the data were voluminous, it would help if a specific list of expenses for which the two forms are required were made available.
After various notices, an assessment order u/s. 143(3) was passed. The assessment order specifically refers to the various notices issued to the petitioner u/s. 142(1). The payments made to Insignia or non-deduction of TDS was, however, not discussed in the assessment order.
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