ACIT CEN CIR 14, MUMBAI V. CHAIN-N-CHAIN, MUMBAI

ITA 1404/MUM/2010

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 3414 (ITAT-MUMBAI)
• Duration Of Justice: 10 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-12-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2004-2005
• Appeal Filed On: 19-02-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: REENA JHA TRIPATHI
• Assessee Lawyers: AJAY NAGPAL
• Section: 143(3); 153A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL 'C' BENCH, MUMBAI BEFORE SHRI R.S. PADVEKAR, JUDICIAL MEMBER AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER ITA NO. 1404/MUM/2010 (ASSESSMENT YEAR: 2004-05) ACIT, CENTRAL CIRCLE 14 M/S. CHAIN-N-CHAIN ROOM NO. 1102, 11TH FLOOR 167/171, GHAMBIR BHAVAN OLD CGO ANNEX BLDG VS. 1ST FLOOR, ZAVERI BAZAR MUMBAI 400020 MUMBAI 400002 PAN - AAAFK 4838 L APPELLANT RESPONDENT APPELLANT BY: SMT. REENA JHA TRIPATHI RESPONDENT BY: SHRI AJAY NAGPAL O R D E R PER B. RAMAKOTAIAH, A.M. THIS APPEAL BY THE REVENUE IS AGAINST THE ORDER OF THE CIT(A) 37, MUMBAI DATED 22.12.2009. 2. REVENUE HAS RAISED THE FOLLOWING SOLITARY GROUND: - ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) WAS NOT JUSTIFIED IN HOLDING THAT KEYMAN INS URANCE POLICY PAYMENT FOR INSURING THE LIFE OF THE PARTNERS WAS A LLOWABLE BY RELYING ON HON'BLE ITAT DECISION IN THE CASE OF ITO VS. MODI M OTORS (2009) 27 SOT 476 (MUM), WHEREAS IN THIS CASE INSURANCE PAYMENT W AS GIVEN FOR INSURING THE LIFE OF INDIVIDUALS WHO WERE NOT PARTN ERS. 3. THIS APPEAL BY THE REVENUE IS AGAINST THE ORDER U/ S 153A IN WHICH THE AO ADOPTED THE ADDITIONS MADE IN EARLIER ORDER U/S 143(3) WITH OUT ANY DISCUSSION AS THAT ORDER WAS PENDING ADJUDICATION B EFORE CIT(A). ONE SUCH ADDITION MADE WAS ADDITION OF ` 19,84,300/- TO THE INCOME OF THE ASSESSEE BY DISALLOWING KEYMAN INSURANCE PREMIUM PAID ON THE PRETEXT THAT THE PAYMENT WAS GIVEN FOR INSURING THE INDIVIDUALS WHO ARE NOT PARTNERS. ON APPEAL THE CIT(A), FOLLOWING THE ORDER OF THE ITAT IN THE ASSESSEE CASE ON THE ORDER DATED 29/12/2006 IN ITA 7570/MUM/07 DT. 2 3-09-09, DELETED THE ADDITION. REVENUE IS IN APPEAL. 4. WE HAVE HEARD THE LEARNED D.R. AND THE LEARNED COUN SEL. ITA NO. 1404/MUM/2010 M/S. CHAIN-N-CHAIN 2 5. THERE IS NO NEED TO INTERFERE WITH THE ORDER OF THE CIT(A) AS HE ONLY FOLLOWED THE ITAT DECISION IN ASSESSEE OWN CASE FOR THE SAME YEAR ON THE SAME ISSUE. FURTHER, THE ISSUE IS NOW COVERED BY TH E DECISION OF THE HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. B. N. EXPORTS 323 ITR 178 TO THE EXTENT OF ALLOWING THE AMOUNT IN THE HANDS OF P ARTNER EVEN. THE GROUND RAISED IS DISMISSED. 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH DECEMBER 2010. SD/- SD/- (R.S. PADVEKAR) (B. RAMAKOTAIAH) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DATED: 30 TH DECEMBER 2010 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 37, MUMBAI 4. THE CIT CENTRAL-I, MUMBAI CITY 5. THE DR, C BENCH, ITAT, MUMBAI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI N.P.