SBI LIFE INSURANCE CO. LTD, MUMBAI V. ACIT 1(3), MUMBAI

ITA 1683/MUM/2012

• Counselvise Citation: 168319914 RSA 2012
• Duration Of Justice: 3 year(s) 3 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-06-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: E
• Next Hearing Date: 15-09-2014
• Assessment Year: 2004-2005
• Appeal Filed On: 09-03-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MANJUNATHA SWAMY
• Assessee Lawyers: F V IRANI; MANOJ PUR OHIT
• Keywords: Reopening of assessment; Rule of consistency; Bonafide belief; Tangible material; Difference of opinion; Change of opinion; Reassessment proceedings
• Section: 143(3); 14A; 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH E , MUMBAI BEFORE SHRI R.C. SHARMA , ACCOUNTANT MEMBER AND SHRI SANJAY GARG , JUDICIAL MEMBER ITA NO S . 1683 & 1684 /M/2012 ASSESSMENT YEAR S : 2004 - 05 & 2005 - 06 M/S. SBI LIFE INSURANCE CO. LTD., 5 TH FLOOR, NATRAJ, M.V. ROAD, WESTERN EXPRESS HIGHWAY JUNCTION, ANDHERI (EAST), MUMBAI 400 069 PAN: AAFCS 2530P VS. ASSTT. COMMISSIONER OF INCOME TAX (1) - 3, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI - 400020 (APPELLANT) (RESPONDENT) PRESENT FOR: ASSESSEE BY : SHRI F.V. IRANI, A.R. & MANOJ PUROHIT, A.R. REVENUE BY : SHRI MANJUNATHA SWAMY, D.R. DATE OF HEARING : 24.03. 201 5 DATE OF PRONOUNCEMENT : 19.06. 2015 O R D E R PER SANJAY GARG, JUDICIAL MEMBER: THE ABOVE TITLED TWO APPEALS RELEVANT TO ASSESSMENT YEARS 2004 - 05 & 2005 - 06 HAVE BEEN PREFERRED BY THE ASSESSEE AGAINST THE ORDERS OF THE COMMISSIONER OF INCOME TAX (APPEALS) [HEREINAFTER REFERRED TO AS THE CIT(A) ] DATED 30.12.2011 AND 19.12.2011 RESPECTI VELY. SINCE THE FACTS AND ISSUES INVOLVED THEREIN ARE IDENTICAL IN NATURE, HENCE THE SAME ARE TAKEN TOGETHER FOR DISPOSAL BY THIS COMMON ORDER. FACTS, FOR THE SAKE OF CONVENIENCE, HAVE BEEN TAKEN FROM ITA NO.1683/M/2012 FOR A.Y. 2004 - 05. ITA NO.1683/M/20 12 FOR A.Y. 2004 - 05 2. THE ASSESSEE IN THIS APPEAL HAS TAKEN THE FOLLOWING THREE GROUNDS OF APPEAL: ITA NO S .1683 & 1684 /M/2012 M/S. SBI LIFE INSURANCE CO. LTD. 2 GROUND NO 1 THE LEARNED CIT (A) HAS ERRED IN CONFIRMING THE ACTION OF THE AO IN REOPENING OF ASSESSMENT U/S 147, IGNORING THE LEGAL POSITION LAID DOWN BY T HE SUPREME COURT INTERALIA IN THE CASE OF CI T , DELHI - VS - KELVINATOR OF INDIA LTD. (2010) - 320 IT R 561 AND BOMBAY HIGH COURT IN THE CASE OF ICICI PRUDENTIAL LIFE INS URANCE COMPANY LTD. (2010) - 325 IT R 471. GROUND NO 2 THE LEARNED CIT (A) HAS ERRED IN CONFIRM ING THE ACTION OF THE AO IN MAKING ADDITION OF NEGATIVE RESERVES AMOUNTING RS 8,28,69,000/ - TO THE ACTUARIAL SURPLUS FOR DETERMINING THE PROFIT FROM BUSINESS OF LIFE INSURANCE IN DISREGARD OF THE LAW LAID DOWN BY THE SUPREME C OURT IN THE CASE OF LIC V/S CI T 51 ITR 773 FOR PROHIBITING ANY ADJUSTMENT TO THE A C TUARIAL SURPLUS DETERMINED AS PER THE PROVISION OF INSURANCE ACT. GROUND NO 3 (I) THE LEARNED CIT (A) HAS ERRED IN CONFIRMING THE ACTION OF THE AO IN APPLYING THE PROVISIONS OF SECTION 14A. (II) WITHOU T PREJUDICE TO THE ABOVE THE LEARNED CIT (A) ERRED IN CONFIRMING THE DISALLOWANCE BASED ON RULE 8D IGNORING THE BOMBAY HIGH COURT DECISION IN GODREJ BOYCE V/S CIT (2010 - 328 ITR 81). GROUND NO.1: 3. THE ASSESSEE THROUGH THIS GROUND OF APPEAL HAS AGITATED THE REOPENING OF THE ASSESSMENT UNDER SECTION 147 OF THE ACT. THE BRIEF FACTS OF THE CASE ARE THAT THE RETURN DECLARING TOTAL LOSS OF RS.16 , 42 , 82 , 820/ - WAS FILED BY THE ASSESSEE ON 26.10.2004 AND THE ASSESSMENT WAS COMPLETED UNDER SECTION 143(3) OF THE AC T ON 20.11.2006. SUBSEQUENTLY, THE ASSESSING OFFICER (HEREINAFTER REFERRED TO AS THE AO) , DURING THE SCRUTINY ASSESSMENT U/S. 143(3) FOR THE A.Y. 2006 - 07, NOTICED THAT THE ASSESSEE WAS NOT OFFERING THE INCREMENTAL NEGATIVE RESERVES AS A PART OF SURPLUS AR RIVED AS PER ACTUARIAL VALUATION FOR THE PURPOSE OF COMPUTING INCOME FROM LIFE INSURANCE BUSINESS. THIS HAS RESULTED IN UNDER - ASSESSMENT OF INCOME WITHIN THE MEANING OF SECTION 147 OF THE ACT. 4. THE ASSESSEE AGITATED THE REOPENING OF THE ASSESSMENT AS WELL AS THE ADDITIONS MADE IN THE REASSESSMENT ORDER PASSED UNDER SECTION 147 OF THE ACT ITA NO S .1683 & 1684 /M/2012 M/S. SBI LIFE INSURANCE CO. LTD. 3 BEFORE THE LD. CIT(A). IT WAS CONTENDED BEFORE THE LD. CIT(A) THAT ALL THE FACTS AND RELEVANT DETAILS WERE ALREADY THERE BEFORE THE AO AT THE TIME OF ORIGINAL SCRU TINY ASSESSMENT PROCEEDINGS UNDER SECTION 143(3) OF THE ACT. THE DETAILS OF NEGATIVE RESERVE IN FORM I WERE DULY FURNISHED BEFORE THE AO. HENCE, IT WAS NOT A CASE WHERE THE ASSESSEE HAD FAILED TO DISCLOSE FULLY AND TRULY ALL THE MATERIAL FACTS. NO NEW FACT OR TANGIBLE MATERIAL HAD COME INTO THE KNOWLEDGE OF THE AO. IT WAS FURTHER CONTENDED THAT THE BELIEF OF ESCAPEMENT OF TAXABLE INCOME IN RELATION TO TAXABILITY OF NEGATIVE RESERVES, THUS, WAS NOTHING BUT CHANGE OF OPINION OF THE AO. IT WAS THEREFORE CONTENDED , WHILE RELYING UPON THE DECISIONS OF THE HONBLE SUPREME COURT IN THE CASE OF KELVINATOR OF INDIA LTD. 2010 320 ITR 561 AND FURTHER THAT OF THE HONBLE BOMBAY HIGH COURT IN THE CASE OF ICICI PRUDENTIAL CO. LTD. (2010 TIOL 229 HC - MUMBAI IT) , THAT REOPENING WAS BAD IN LAW AND THEREFORE, THE REASSESSMENT ORDER WAS LIABLE TO BE SET ASIDE. THE LD. CIT(A), HOWEVER, OBSERVED THAT IT WAS NOT A CASE OF CHANGE OF OPINION BY THE AO BUT WAS AN EFFORT TO BRING THE CORRECT TOTAL INCOME OF THE ASSESSEE T O TAX. AGGRIEVED BY THE ORDER OF THE LD. CIT(A) THE ASSESSEE COME IN APPEAL BEFORE US. 5. BEFORE US, THE LD. A.R. OF THE ASSESSEE HAS REITERATED HIS SUBMISSIONS AS WERE MADE BEFORE THE LD. CIT(A) AS OBSERVED ABOVE. THE LD. D.R. ON THE OTHER HAND, HAD RELIED UPON THE FINDINGS OF THE LOWER AUTHORITIES. 6. WE HAVE CONSIDERED THE RIVAL CONTENTIONS OF THE LD. REPRESENTATIVES OF BOTH THE PARTIES AND HAVE ALSO GONE THROUGH THE RECORD. A PERUSAL OF THE REASONS RECORDED FOR REOPENING REVEALS THAT THE REOPE NING WAS DONE IN RELATION TO ESCAPEMENT OF INCOME ON TWO ISSUES. THE FIRST REASON WAS THAT AS PER SECTION 115B THE TAX RATE OF 12.5% SHOULD HAVE BEEN APPLIED ONLY TO THE INCOME EARNED FROM INSURANCE BUSINESS AND FOR THE OTHER INCOME, THE TAX AT THE ITA NO S .1683 & 1684 /M/2012 M/S. SBI LIFE INSURANCE CO. LTD. 4 RATE O F 35% SHOULD HAVE BEEN APPLIED. SINCE, THE AO INADVERTENTLY, HAD APPLIED LOWER TAX RATE OF 12.5% ON THE ENTIRE INCOME, HENCE, THE AO HAD REASONABLE BELIEF THAT THE INCOME OF THE ASSESSEE HAS ESCAPED ASSESSMENT. WE FIND THAT THIS ISSUE HAS BEEN UNSUCCESSF ULLY CONTESTED BY THE ASSESSEE IN APPEAL BEFORE THE LD. CIT(A). HOWEVER, BEFORE US, THE ASSESSEE HAS NOT RAISED ANY GROUND OF APPEAL RELATING TO REJECTION OF HIS CONTENTION BY THE LD. CIT(A) ON THIS ISSUE. HENCE, IT CAN BE SAFELY SAID THAT THE BELIEF OF THE AO REGARDING ESCAPEMENT OF INCOME IN RELATION TO THE RATE OF TAX LEVIABLE ON INCOME OTHER THAN INSURANCE INCOME WAS CORRECT AND BONAFIDE. SO FAR AS THE SECOND REASON RELATING TO THE ESCAPEMENT OF INCOME BECAUSE OF THE ASSESSEE OFFERING NEGATIVE RESERV ES AT ZERO , HAD NOT COME INTO THE KNOWLEDGE OF THE AO AND NO DISCUSSION HAD TAKEN PLACE IN THIS RESPECT. THE AO WAS UNDER BONAFIDE BELIEF THAT THE ASSESSEE HAD WRONGLY ADOPTED THE VALUE OF NEGATIVE RESERVES AT ZERO. IT WAS THEREFORE NOT A CASE OF CHA NGE OF OPINION. THE CASE LAW CITED BY THE ASSESSEE IS, THUS, NOT APPLICABLE TO THE PRESENT FACTS AND CIRCUMSTANCES OF THE CASE. WE THEREFORE, DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LD. CIT(A) SO FAR THE ISSUE OF REOPENING OF THE ASSESSMENT IS CONC ERNED. GROUND NO.1 IS THEREFORE DECIDED AGAINST THE ASSESSEE. GROUND NO.2 7. VIDE GROUND NO.2, THE ASSESSEE HAS AGITATED THE CONFIRMATION OF ADDITION OF NEGATIVE RESERVES AMOUNTING TO RS.8 , 28 , 69 , 000/ - TO THE ACTUARIAL SURPLUS FOR DETERMINING THE PROFIT FROM BUSINESS OF LIFE INSURANCE. THE ABOVE SAID TERM NEGATIVE RESERVES HAS BEEN EXPLAINED BY THE TRIBUNAL IN THE CASE OF LIFE INSURANCE CORPORATION OF INDIA ITA NO. 6221/M/2012 & OTHERS DECIDED VIDE ORDER DATED 03.04.2012 AS UNDER: 4.3.1. WE ARE OF TH E OPINION THAT TREATMENT GIVEN TO NEGATIVE RESERVES BY ACTUARY CANNOT BE DISTURBED BY THE AO. HERE, IT WOULD BE USEFUL TO UNDERSTAND MEANING OF NEGATIVE RESERVE IN SIMPLE TERMS. WHILE MAKING ACTUARIAL VALUATION, REQUIREMENT OF RESERVE TO SERVICE INSURANC E POLICIES ISSUED IS ASCERTAINED. SUCH RESERVE (CALLED MATHEMATICAL RESERVE OR VALUE OF LIABILITY) IS EQUAL TO PRESENT VALUE OF FUTURE ITA NO S .1683 & 1684 /M/2012 M/S. SBI LIFE INSURANCE CO. LTD. 5 PREMIUM RECEIVABLE. WHEN THE PRESENT VALUE OF FUTURE PREMIUM IS MORE THAN THE PRESENT VALUE OF FUTURE BENEFITS PAYABLE AND FUTURE EXPENSES TO BE INCURRED, THIS AMOUNT BECOMES NEGATIVE, KNOWN AS NEGATIVE RESERVE. IN SIMPLE WORDS, IT MEANS THAT THE INSURANCE CONTRACTS UNDER CONSIDERATION DO NOT WARRANT ANY PROVISION AND IS, IN FACT, AN ASSET. HOWEVER, IN CERTAIN CIRCUMST ANCES, SUCH AS FOR FOLLOWING IRDA GUIDELINES, INSURERS MAY NOT TREAT POLICIES AS ASSETS AND THEY SET ANY NEGATIVE RESERVES TO ZERO. FOR EXAMPLE, IF AN INSURER HAD TWO POLICIES, ONE WITH A RESERVE OF 100 AND THE OTHER WITH A RESERVE OF 10, IT MIGHT TH INK OF ITS LIABILITIES AT 100 RATHER THAN 90 TO TAKE INTO ACCOUNT THE EVENTUALITY IN CASE THE SECOND POLICY LAPSED. THIS PROCESS IS CALLED ELIMINATING NEGATIVE RESERVES. AS MENTIONED EARLIER, A POLICY WHICH HAS A NEGATIVE RES ERVE IS IN NATURE OF AN ASSET . 8. NOW COMING TO THE FACTS OF THE CASE, THE AO NOTICED THAT THE ASSESSEE COMPANY WAS HAVING NEGATIVE RESERVES OF 98374000/ - . THE NEGATIVE RESERVES HAS AN IMPACT OF REDUCING THE TAXABLE SURPLUS. THE ASSESSEE HAD TAKEN THE VALUE OF THE NEGATIVE RESERV ES AT ZERO AS PER THE REPORT OF THE ACTUARY GIVEN AS PER INSURANCE ACT. THE AO, HOWEVER, OBSERVED THAT FOR THE PURPOSE OF DETERMINING THE SURPLUS OF THE ASSESSEE COMPANY FOR TAXATION PURPOSES UNDER THE INCOME TAX ACT, THE ACTUAL VALUE OF THE NEGATIVE RE SERVES WAS REQUIRED TO BE TAKEN. HE, THEREFORE, BROUGHT THE INCOME OF NEGATIVE RESERVES TO TAX IN THE REASSESSMENT PROCEEDINGS. 9. IN APPEAL, THE LD. CIT(A), THOUGH, OBSERVED THAT AS PER THE PROVISIONS OF THE SECTION 44 OF THE ACT, THE INCOME OF THE I NSURANCE COMPANY IS REQUIRED TO BE COMPUTED IN ACCORDANCE WITH THE RULES CONTAINED IN THE 1 ST SCHEDULE. HE FURTHER OBSERVED THAT AS PER RULE 2 OF THE 1 ST SCHEDULE, THE SURPLUS OR DEFICIT DISCLOSED BY THE ACTUARIAL VALUATION MADE IN ACCORDANCE WITH THE INS URANCE ACT, 1938 IS THE SOLE BASIS FOR COMPUTATION OF INCOME FROM LIFE INSURANCE BUSINESS. HE ALSO CONSIDERED THE DECISION OF THE HONBLE SUPREME COURT IN THE CASE OF LIFE INSURANCE CORPORATION OF INDIA VS. CIT 51 ITR 0773 AND OBSERVED THAT AS PER THE L AW LAID DOWN BY THE HONBLE SUPREME COURT, THE SURPLUS HAS TO BE DETERMINED AS PER THE REPORT OF THE APPOINTED ACTUARY AS PER THE PROVISIONS OF THE INSURANCE ACT. THE AO HAS NO POWER TO MAKE ANY ITA NO S .1683 & 1684 /M/2012 M/S. SBI LIFE INSURANCE CO. LTD. 6 ADJUSTMENT AGAINST ACTUARIA L SURPLUS DETERMINED AS PER INSUR ANCE ACT WHILE MAKING COMPUTATION OF TOTAL INCOME. HE, HOWEVER, OBSERVED T HAT BUT IN A CASE WHERE ACTUARY HAS ERRED IN APPLYING INSURANCE ACT CORRECTLY AND PROPERLY, WHICH RESULTS IN UNDERSTATEMENT OF TAXABLE SURPLUS, THE AO CAN POINT OUT THE DEFECTS IN N ON COMPLIANCE OF INSURANCE ACT AND DETERMINE THE ACTUAL TAXABLE SURPLUS. HE FURTHER OBSERVED THAT THE AS PER THE REGULATIONS OF THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY (IRDA) THE VALUE OF NEGATIVE RESERVES IS TO BE TAKEN AT ZERO ONLY IN SPECI FIC SITUATIONS AND NOT IN GENERAL FOR ALL PURPOSES. WHILE OBSERVING SO, HE RELIED UPON SECTION 35 OF THE INSURANCE ACT WHICH IS RELATED TO AMALGAMATION AND TRANSFER OF INSURANCE BUSINESS, IN WHICH CASE IT HAS BEEN PROVIDED THAT THE MATHEMATICAL RESERVES S HOULD BE TAKEN WITHOUT ANY MODIFICATIONS. HE THEREFORE HELD THAT FOR DETERMINING THE INCOME FOR THE PURPOSE OF INCOME TAX ACT, THE NEGATIVE RESERVES SHOULD HAVE BEEN TAKEN AT ACTUAL VALUE AND SHOULD NOT HAVE BEEN MODIFIED OR TAKEN AT ZERO VALUE. HE THE REFORE UPHELD THE ADDITIONS MADE BY THE AO. THE ASSESSEE HAS, THUS, COME IN APPEAL BEFORE US. 10. BEFORE US, THE LD. A.R. OF THE ASSESSEE HAS STATED THAT THE ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISIONS OF THE TRIBUNAL IN THE CA SE OF LICS VS. ADDITIONAL CIT (SUPRA), HDFC STANDARD LIFE INSURANCE COMPANY VS. DCIT ITA NO.3004/M/2012, ICICI PRUDENTIAL INSURANCE CO. LTD. ITA NOS.6854/M/2010 & OTHERS DECIDED VIDE ORDER DATED 14.09.2012. THE LD. A.R. HAS FURTHER BROUGHT OUR ATTENT ION TO THE DECISION OF THE TRIBUNAL IN THE OWN CASE OF THE ASSESSEE FOR SUBSEQUENT ASSESSMENT YEAR 2006 - 07 VIDE ITA NO.5670/M/2009 DECIDED ON 23.05.2014 ALONG WITH THE OTHER APPEALS OF THE ASSESSEE BEARING NO.3800/M/2008, 3801/M/2008, 1501/M/2009 AND THE C ORRESPONDING CROSS APPEALS OF THE REVENUE. THE TRIBUNAL WHILE CONSIDERING THE ABOVE ISSUE HAS RESTORED THE MATTER TO THE FILE OF THE AO FOR FRESH ITA NO S .1683 & 1684 /M/2012 M/S. SBI LIFE INSURANCE CO. LTD. 7 ADJUDICATION CONSIDERING THE DECISION OF THE TRIBUNAL IN THE CASES OF ICICI PRUDENTIAL CO. LTD. (SUPRA) AND LIC (SUPRA). UNDER SUCH CIRCUMSTANCES, FOR THE SAKE OF RULE OF CONSISTENCY, WE RESTORE THIS ISSUE TO THE FILE OF THE AO TO DECIDE THE SAME IN THE LIGHT OF THE DIRECTIONS GIVEN BY THE TRIBUNAL FOR ADJUDICATING THE ISSUE FOR SUBSEQUENT YEAR A.Y. 2006 - 07. THIS GROUND OF THE APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. GROUND NO.3 11. THE GROUND NO.3 IS RELATING TO THE QUESTION OF APPLICABILITY OF PROVISIONS OF SECTION 14A WHILE DETERMINING THE INCOME OF THE LIFE INSURANCE COMPANY. THE LD. A.R. OF THE A SSESSEE HAS BROUGHT OUR ATTENTION TO PARA 14 OF THE ORDER OF THE TRIBUNAL DATED 23.05.2014 PASSED IN THE OWN CASE OF THE ASSESSEE (SUPRA) WHEREIN THIS ISSUE HAS BEEN CONSIDERED BY THE TRIBUNAL IN RELATION TO THE SUBSEQUENT ASSESSMENT YEAR A.Y. 2006 - 07. TH E TRIBUNAL WHILE RELYING UPON THE DECISION OF THE CO - ORDINATE BENCH OF THE TRIBUNAL IN THE CASE OF ICICI PRUDENTIAL CO. LTD. (SUPRA) AND FURTHER IN THE CASE OF HDFC STANDARD LIFE INSURANCE CO. LTD. (SUPRA) HAS HELD THAT IN VIEW OF THE SPECIAL PROVISIONS AP PLICABLE TO THE INSURANCE COMPANIES AS PROVIDED UNDER SECTION 44 OF THE ACT, THE PROVISIONS OF SECTION 14A WOULD NOT BE APPLICABLE TO THE INSURANCE COMPANIES. RESPECTFULLY, FOLLOWING THE DECISION OF THE TRIBUNAL IN THE OWN CASE OF THE ASSESSEE FOR SUBSEQU ENT ASSESSMENT YEAR, THIS ISSUE IS ACCORDINGLY DECIDED IN FAVOUR OF THE ASSESSEE. ITA NO.1684/M/2012 FOR A.Y. 2005 - 06 12. IN THIS APPEAL, THE ASSESSEE HAS TAKEN TWO GROUNDS OF APPEAL. THE FIRST GROUND IS RELATING TO THE REOPENING OF THE ASSESSMENT UNDE R SECTION 147 OF THE ACT. IN VIEW OF OUR OBSERVATIONS MADE ABOVE WHILE ADJUDICATING THE IDENTICAL ISSUE IN RELATION TO A.Y. 2004 - 05, THIS ISSUE IS ACCORDINGLY DECIDED AGAINST THE ASSESSEE. ITA NO S .1683 & 1684 /M/2012 M/S. SBI LIFE INSURANCE CO. LTD. 8 13. THE SECOND GROUND TAKEN BY THE ASSESSEE IS RELATING TO THE AD DITION OF NEGATIVE RESERVES IN ACTUARIAL SURPLUS FOR DETERMINING THE PROFIT FROM BUSINESS OF INSURANCE. WE HAVE ALREADY DEALT WITH THIS ISSUE WHILE ADJUDICATING GROUND NO.2 OF ASSESSEES APPEAL FOR A.Y. 2004 - 05 AND HAVE RESTORED THE MATTER TO THE FILE OF THE AO IN TERMS OF THE ORDER OF THE TRIBUNAL PASSED IN THE OWN CASE OF THE ASSESSEE FOR SUBSEQUENT ASSESSMENT YEAR 2006 - 07. THIS ISSUE FOR THE YEAR UNDER CONSIDERATION IS ALSO ACCORDINGLY RESTORED THE FILE OF THE AO FOR ADJUDICATION AFRESH IN TERMS OF THE ORDER OF THE TRIBUNAL DATED 23.05.2014 FOR A.Y. 2006 - 07 (SUPRA). 14. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 19.06. 201 5 . SD/ - SD/ - ( R.C. SHARMA ) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 19.06.2015 . * KISHORE , SR. P.S. COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT ( A) CONCERNED, MUMBAI THE DR CONCERNED BENCH //TRUE COPY// [ BY ORDER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.