WNS GLOBAL SERVICES P.LTD, MUMBAI V. ASST CIT 10(2), MUMBAI

ITA 1586/MUM/2011

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 79167 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 3 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-06-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 18-06-2014
• Assessment Year: 2004-2005
• Appeal Filed On: 24-02-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHA KALA CHANDA
• Section: 143(3); 115JB; 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL 'G' BENCH, MUMBAI BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER ITA NO. 1586/MUM/2011 (ASSESSMENT YEAR: 2004-05) M/S. WNS GLOBAL SERVICES P. LTD. A C I T - 20(2) GATE 4, GODREJ & BOYCE COMPLEX PIROJSHANAGAR, LBS MARG WIKHROLI (W), MUMBAI 400079 VS. MUMBAI PAN - AAACW2598L APPELLANT RESPONDENT APPELLANT BY: SHRI NIKHIL TIWARI RESPONDENT BY: MS. ABHA KALA CHANDA DATE OF HEARING: 18.06.2014 DATE OF PRONOUNCEMENT: 18.06.2014 O R D E R PER D. MANMOHAN, V.P. THIS APPEAL BY THE ASSESSEE COMPANY IS DIRECTED AGA INST THE ORDER PASSED BY THE CIT(A) 22, MUMBAI AND IT PERTAINS TO A.Y. 2004-05. 2. BRIEF FACTS ARE NECESSARY TO APPRECIATE THE ISSUE O N HAND. THE ASSESSEE DECLARED A NET LOSS OF ` 37,98,86,488/- WHEREAS THE ASSESSMENT WAS COMPLETED UNDER SECTION 143(3) OF THE ACT ON A TOTAL INCOME OF ` 18,38,67,230/- BY MAKING CERTAIN ADJUSTMENTS/ADDITI ONS. AN APPEAL FILED BY THE ASSESSEE BEFORE THE CIT(A) WAS DISPOSED OF O N 13.12.2008 WHEREBY SOME RELIEF WAS GRANTED TO THE ASSESSEE. AN ORDER D ATED 05.02.2009 WAS PASSED GIVING EFFECT TO THE AFORESAID ORDER OF THE CIT(A) DETERMINING THE LOSS OF THE ASSESSEE COMPANY AT ` 37,40,09,488/-. 3. ASSESSEE IS ENGAGED IN THE BUSINESS OF PROVIDING I. T. ENABLED BPO SERVICES. IT CLAIMED DEDUCTION UNDER SECTION 10A OF THE ACT ON CERTAIN UNITS. WHEREVER THERE WAS LOSS NO DEDUCTION IN RESPECT OF THAT UNIT WAS CLAIMED. IN FINANCIAL YEAR 2002-03 THERE WAS CHANGE IN THE SHAR EHOLDING. IN VIEW OF THE CHANGE IN THE OWNERSHIP OF THE ASSESSEE COMPANY, RE VENUE WAS OF THE VIEW ITA NO. 1586/MUM/2011 M/S. WNS GLOBAL SERVICES P. LTD. 2 THAT THE ASSESSEE IS NOT ELIGIBLE FOR DEDUCTION UND ER SECTION 10A IN VIEW OF THE PROVISIONS OF SECTION 10A(9) OF THE ACT. PROCEE DINGS UNDER SECTION 263 OF THE ACT WAS INITIATED BY THE COMMISSIONER OF INCOME TAX ACT AND VIDE HIS ORDER DATED 17.03.2009 THE ASSESSMENT ORDER DATED 2 8.12.2006 WAS SET ASIDE FOR DECIDING THE ISSUE OF CLAIM OF DEDUCTION UNDER SECTION 10A AFRESH. PURSUANT TO THE DIRECTIONS OF THE COMMISSIONER THE AO COMPLETED THE ASSESSMENT AND IN HIS ORDER DATED 23.12.2009 HE COM PUTED THE INCOME/ LOSS UNDER THE NORMAL PROVISIONS AND ALSO COMPUTED THE BOOK PROFIT UNDER SECTION 115JB OF THE ACT. THE ASSESSEE PREFERRED AN APPEAL TO THE CIT(A) AGAINST THE CONSEQUENTIAL ORDER PASSED BY THE AO. A T THE SAME TIME AN APPEAL WAS PREFERRED BEFORE THE APPELLATE TRIBUNAL AGAINST THE ORDER PASSED UNDER SECTION 263 OF THE ACT. HOWEVER, THE APPEAL P ENDING BEFORE THE CIT(A) WAS HEARD BEFORE THE DISPOSAL OF THE APPEAL FILED A GAINST THE ORDER PASSED UNDER SECTION 263 WHEREIN THE CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE AND HENCE THE ASSESSEE HAD TO PREFER A SECOND APPEA L BEFORE THE TRIBUNAL. SUBSEQUENT TO THE DISPOSAL OF THE APPEAL BY THE COM MISSIONER THE ITAT G BENCH, MUMBAI, VIDE ITS ORDER DATED 10.08.2012, CAN CELLED/QUASHED THE ORDER PASSED BY THE REVISIONAL AUTHORITY. 4. BEFORE US THE LEARNED COUNSEL FOR THE ASSESSEE SUBM ITTED THAT THE IMPUGNED ORDERS OF THE AO AS WELL AS THE CIT(A) ARE PASSED UPON THE DIRECTIONS GIVEN BY THE REVISIONAL AUTHORITY WHEREA S THE ORDER OF THE REVISIONAL AUTHORITY WAS QUASHED BY THE TRIBUNAL AN D THUS THE VERY BASIS NO LONGER SUBSISTS IN WHICH EVENT THE ORDERS OF THE AO AS WELL AS THE CIT(A) DESERVE TO BE SET ASIDE. 5. THE LEARNED D.R. FAIRLY ADMITTED THAT THE ORDER PAS SED BY THE REVISIONAL AUTHORITY WAS CANCELLED BY THE TRIBUNAL AND THUS THE ISSUE CONSIDERED BY THE AO AS WELL AS THE CIT(A) IN THIS ROUND OF LITIGATION NO LONGER SUBSISTS. 6. HAVING REGARD TO THE CIRCUMSTANCES OF THE CASE WE S ET ASIDE/CANCEL THE ORDERS PASSED BY THE AO AS WELL AS THE CIT(A), SINCE THE ORDER PASSED BY THE REVISIONAL AUTHORITY UNDER SECTION 263 WAS QUAS HED BY THE ITAT (SUPRA). ITA NO. 1586/MUM/2011 M/S. WNS GLOBAL SERVICES P. LTD. 3 7. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS TREA TED AS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 18 TH JUNE, 2014. SD/- SD/- (N.K. BILLAIYA) (D. MANMOHAN) ACCOUNTANT MEMBER VICE PRESIDENT MUMBAI, DATED: 18 TH JUNE, 2014 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 22, MUMBAI 4. THE CIT 10, MUMBAI CITY 5. THE DR, G BENCH, ITAT, MUMBAI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI N.P.