DCIT-24(1), MUMBAI, PIRAMAL CHAMBERS, MUMBAI V. AKRUTI JAY CHANDAN JOINT VENTURE, MUMBAI

ITA 4188/MUM/2023

AI Insights

The case involves multiple appeals by the Revenue against Akruti Jay Chandan Joint Venture concerning the assessment years 2012-13, 2014-15, and 2015-16. The primary contention in the appeals was the deletion of an addition of Rs. 1,72,24,800 on account of project management fees paid, which the Revenue argued was not substantiated by the assessee. However, the appeals were ultimately dismissed due to procedural and threshold issues related to the tax effect and the decision of the appellant to opt for the DTVSV scheme.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 32239 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2015-2016
• Laws Referred To: CBDT Circular No. 09 OF 2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAM KRISHN KEDIA
• Assessee Lawyers: JAYESHKUMAR JAIN
• Keywords: Tax effect; Capital expenditure

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL Mumbai “A” Bench, Mumbai. Before Smt. Beena Pillai (JM) & Shri Omkareshwar Chidara (AM) ITA No. 4188/MUM/2023 (Assessment Year : 2015-16) ITA No. 4189/MUM/2023 (Assessment Year : 2014-15) ITA No. 4091/MUM/2023 (Assessment Year : 2012-13) DCIT-24(1) 601, 6th Floor Piramal Chambers Lalbaug, Parel Mumbai-400 012. Vs. Akruti Jay Chandan Joint Venture CTS No. 453-3 Shantivan Complex Mira Bhaynder Road Mira Road, Thane Maharashtra-401 107. PAN : AAAAA9076H Appellant Respondent Assessee by : Shri Jayeshkumar Jain on behalf of Shri Anuj Kisnadwala Revenue by : Shri Ram Krishn Kedia Date of Hearing : 23/01/2025 Date of pronouncement : 29/01/2025 O R D E R Per Bench :- ITA No. 4188/Mum/2023 The Revenue filed an appeal in the above-captioned case, with the following Grounds of appeal :- 1. On the facts and circumstances of the case and in law, Ld. CIT(A) has erred in deleting the addition of Rs. 1,72,24,800/- on account of project management fees paid to Shri Jayesh D. Shah amounting to Rs. 1,72,24,800/- without appreciating the fact that the assessee failed to submit the details called by the AO. 2. On the facts and circumstances of the case and in law, Ld. CIT(A) has erred in not considering the fact that any expenditure (not being in the nature of capital expenditure or personal expenses of the assessee) laid out or expended fully or exclusively for the purpose of business of the assessee. Nothing has been brought on record by the assessee showing that the above expenses have been incurred wholly and exclusively for the purpose of business of the assessee. Akruti Jay Chandan Joint Venture 2 2. From the Form No. 36 filed by the Revenue, it is observed that the tax effect involved in this appeal is Rs. 58,54,710/-. As per the CBDT Circular, No. 09 OF 2024 dated 17.09.2024, the monetary limits to file an appeal by the Revenue before the ITAT were fixed at Rs. 60 lakhs. As the tax effect is less than Rs. 60 lakhs, the appeal of the Revenue is dismissed. The Ld. DR has not objected to the same in view of the CBDT circular. 2. The Revenue’s appeal is dismissed. ITA No. 4189 & 4091/Mum/2023 3. These appeals were filed by the Revenue and during the hearing before the Bench, the Ld. AR of the appellant has submitted that the appellant has desired to avail the benefits of DTVSV. In proof the same, the Ld. AR of the appellant has filed a copy of Form No. 1 dated 31.12.2024 issued by the Income Tax Department. As the appellant intends to avail DTVSV, the apepals of the Revenue become infructuous and dismissed. For any reason, if the VSV application was not accepted by the Department, the Revenue is at liberty to recall this order. 4. The Revenue’s appeals are infructuous and hence dismissed. Order pronounced in the open Court on 29/01/2025. Sd/- Sd/- (BEENA PILLAI) (OMKARESHWAR CHIDARA) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai; Dated: 29/01/2025 Copy of the Order forwarded to : 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai Akruti Jay Chandan Joint Venture 3 5. Guard file. BY ORDER, //True Copy// (Assistant Registrar) ITAT, Mumbai PS "