DCIT, CIRCLE-2(1)(1), MUMBAI, MUMBAI V. M/S GREAT UNITED ENERGY PVT LTD, MUMBAI

ITA 1034/MUM/2022

• Counselvise Citation: [2023] 103 COUNSELVISE.COM (IT) 3487 (ITAT-MUMBAI)
• Duration Of Justice: 9 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-02-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 04-12-2022
• Assessment Year: 2015-2016
• Appeal Filed On: 11-05-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Business income
• Section: 56

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “G”, MUMBAI BEFORE SHRI S. RIFAUR RAHMAN, HON'BLE ACCOUNTANT MEMBER AND SHRI RAHUL CHAUDHARY, HON'BLE JUDICIAL MEMBER ITA.NO.1034/MUM/2022 (A.Y: 2015-16) DCIT – Circle – 2(1)(1) Room No. 561, 5th Floor Aayakar Bhavan, M.K. Road Mumbai - 400020 v. M/s. Great United Energy Pvt. Ltd., 32, Raja Bahdur Building, Appollo Street Fort, Mumbai - 400023 PAN: AAECG3525B (Appellant) (Respondent) Assessee Represented by : None Department Represented by : Smt. Smiti Samant Date of Hearing : 05.12.2022 Date of Pronouncement : 16.02.2023 O R D E R PER S. RIFAUR RAHMAN (AM) 1. This appeal is filed by the revenue against order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [hereinafter in short “Ld.CIT(A)”] dated 14.03.2022 for the A.Y.2015-16. 2 ITA.NO.1034/MUM/2022 (A.Y: 2015-16) M/s. Great United Energy Pvt. Ltd., 2. Revenue has raised following grounds in its appeal: - i) "Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in holding that the assessee is eligible for availing the benefit of Tonnage Tax Scheme ignoring that the assessee had provided the charter ship to the ONGC purely on contract basis and is charging for its related services whereas the section 115VD of the Act envisages charter hire of platform supply vessel to be used for the provision of goods or services of a kind normally provided on land?" ii) "Whether on the facts and circumstances of the case and in law, the Ld.CIT(A) has erred in holding that the assessee is eligible for availing the benefit of Tonnage Tax Scheme not appreciating the fact that the ship was not operated by the assessee autonomously but was merely providing the services under the control and command of ONGC?" iii) "Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in holding that the assessee is eligible for availing the benefit of Tonnage Tax Scheme ignoring the decision of the ITAT Madras in the case of ACIT VS M/s. Four Maritime Pvt Ltd. (ITA No. 897 to 900/Mds/2013) dtd 31.07.2013 relied upon in the assessment order?" iv) "Whether on the facts and circumstances of the case and in law, the Ld.CIT(A) has erred in holding that interest earned on fixed deposits kept in bank is to be treated as "business income" ignoring that the interest earned by the assessee on surplus fund invested in fixed deposits has to income from other sources in accordance with the provisions of section 56 of the IT Act, 1961." 3. In spite of issue of notice none appeared on behalf of the assessee nor any adjournment was sought. Therefore, we proceed to dispose of this appeal with the assistance of Ld.DR. 3 ITA.NO.1034/MUM/2022 (A.Y: 2015-16) M/s. Great United Energy Pvt. Ltd., 4. At the time of hearing, Ld. DR brought to the notice of the bench that in the earlier assessment year also i.e. for the A.Y. 2014-15 none appeared on behalf of the assessee and bench has decided the issue in favour of the assessee. Before us, she filed the relevant order in assessee’s own case in ITA.No. 961/Mum/2022 dated 08.09.2022. Copy of the order is placed on record. 5. Considered the submissions of the Ld.DR and material placed on record. We observe that the assessee has been referred to IBC 2016 as corporate debtor with effect from 26.06.2018. According to Section 14 of IBC 2016, no suit should be pursued against the corporate debtor. In view of this, appeal filed by the revenue is dismissed and liberty is granted to pursue this appeal as soon as the assessee is out of IBC 2016. 6. In the result, appeal filed by the Revenue is dismissed. Order pronounced in the open court on 16 th February, 2023 Sd/- Sd/- (RAHUL CHAUDHARY) (S. RIFAUR RAHMAN) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai / Dated 16/02/2023 Giridhar, Sr.PS 4 ITA.NO.1034/MUM/2022 (A.Y: 2015-16) M/s. Great United Energy Pvt. Ltd., Copy of the Order forwarded to: 1. The Assessee 2. The Respondent. 3. The CIT(A), Mumbai. 4. CIT 5. DR, ITAT, Mumbai 6. Guard file. //True Copy// BY ORDER (Asstt. Registrar) ITAT, Mum