DCIT 5(2)(1), MUMBAI V. K..C MARTIME (iNDIA) LTD, MUMBAI

ITA 1542/MUM/2017

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 3896 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 7 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-10-2018
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: H
• Assessment Year: 2012-2013
• Appeal Filed On: 06-03-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: AMIT KIRVE
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL H BENCH, MUMBAI BEFORE S/ SHRI B.R.BASKARAN (AM) & AMARJIT SINGH (JM) I.T.A. NO. 1542 /MUM /20 1 7 (ASSESSMENT YEAR 20 12 - 13 ) ACIT 5(2)(1) ROOM NO. 571 5 TH FLOOR AAYAKAR BHAVAN M.K. ROAD MUMBAI - 400 020. VS. M/S. K.C . MARITIME (INDIA) LIMITED 105, ATLANTA,10 TH FLOOR NARIMAN POINT MUMBAI - 400021. PAN : AAACC4862F ( APPELLANT ) ( RESPONDENT ) ASSESSEE BY SHRI NIRAJ SHETH & SHRI AMIT KIRVE DEPARTMENT BY SHRI MANOJ KUMAR SINGH DATE OF HEARING 2 9 .10 . 201 8 DATE O F PRONOUNCEMENT 29 . 10 . 201 8 O R D E R PER B.R. BASKARAN (A M) : - THE APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 15.11.2016 PASSED BY THE LEARNED CIT(A) - 10, MUMBAI AND IT RELATES TO A.Y. 2012 - 13. THE REVENUE IS AGGRIEVED BY THE DECISION RENDERED BY THE LEARNED CIT(A) IN DELETING THE DISALLOWANCE MADE BY THE ASSESSING OFFICER ON ACCOUNT OF FOLLOWING : - (A) ADDITION U/S. 14A OF THE ACT ` 7,70,339/ - (B) EXCHANGE RATE DIFFERENCE ` 2,00,02,218/ - (C) PENALTY ` 4,75,050/ - 2. WE HAVE HEAR D THE PARTIES AND PERUSED THE RECORD. THE ASSESSEE IS ENGAGED IN THE BUSINESS OF OPERATION OF SHIP S . THE ASSESSEE OFFERED ITS INCOME UNDER TONNAGE TAX SCHEME UNDER CHAPTER XII - G OF THE ACT. THE ASSESSING OFFICER HOWEVER MADE DISALLOWANCE STATED ABOVE TO TH E TOTAL INCOME RETURNED BY THE ASSESSEE. M/S. K.C. MARITIME (INDIA) LIMITED 2 3. AGGRIEVED, THE ASSESSEE HAS FILED THE APPEAL BEFORE THE LEARNED CIT(A) AND CONTENDED THAT NO ADDITION AND DISALLOWANCE COULD BE MADE TO THE TOTAL INCOME OFFERED BY THE ASSESSEE UNDER TONNAGE TAX SCHEME. IN THAT R EGARD, THE ASSESSEE PLACED RELIANCE ON THE DECISION RENDERED BY THE COORDINATE BENCH OF THE ITAT IN THE CASE OF SHIPPING CORPORATION OF INDIA (2011) 10 TAXMANN.COM 141 AND VARUN SHIPPING COMPANY LTD. (2012) 134 ITD 339. THE LEARNED CIT(A) WAS CONVINCED WIT H THE CLAIM OF THE ASSESSEE AND HELD THAT THE ASSESSING OFFICER COULD NOT HAVE DISALLOWED ANY OTHER EXPENDITURE DEBITED TO THE PROFIT AND LOSS ACCOUNT , AS THE ASSESSEE HAS OFFERED INCOME UNDER TONNAGE TAX SCHEME. AGGRIEVED, THE REVENUE HAS FILED THIS APPEA L BEFORE US. 4. AT THE TIME OF HEARING, LEARNED AR PLACED RELIANCE ON THE ORDER PASSED BY THE TRIBUNAL IN THE CASE OF VARUN SHIPPING COMPANY LTD. (SUPRA) AND ALSO DECISION RENDERED BY CHENNAI BENCH OF THE TRIBUNAL IN THE CASE OF FOUR M MARITIME (P) LTD. ( 2015) 152 ITD 557. IN ALL THESE CASES, IT HAS BEEN HELD THAT NO SEPARATE DISALLOWANCE COULD BE MADE WHEN INCOME IS COMPUTED UNDER TONNAGE TAX SCHEME. IN THE CASE OF FOUR M. MARITIME (P) LTD. (SUPRA), IT WAS FURTHER HELD THAT DISALLOWANCE U/S. 14A OF THE AC T ALSO COULD NOT BE MADE IN SUCH A SITUATION. SINCE THE LEARNED CIT(A) HAS FOLLOWED THE DECISION RENDERED BY THE COORDINATE BENCHES IN GIVING RELIEF TO THE ASSESSEE, WE DO NOT FIND ANY INFIRMITY IN THE ORDER PASSED BY THE LEARNED CIT(A). 5. IN THE RESULT, APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER HAS BE E N PRONOUNCED IN THE COURT ON 29 . 10 .201 8 . SD/ - SD/ - (AMARJIT SINGH ) ( B.R. BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED : 29 / 10 / 20 1 8 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT M/S. K.C. MARITIME (INDIA) LIMITED 3 3. THE CIT(A) 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// ( SENIOR PRIVATE SECRETARY ) PS ITAT, MUMBAI