ITO 2(1)(4), MUMBAI V. GO INVESTMENTS & TRADING P.LTD ( PREVIOUSLY KNOWN AS SEVAKUNJ INVESTMENTS & TRADING CO. P.LTD), MUMBAI

ITA 1702/MUM/2013

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 3442 (ITAT-MUMBAI)
• Duration Of Justice: 3 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-06-2013
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: G
• Next Hearing Date: 02-06-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 01-03-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Question of law
• Section: 14A

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES G , MUMBAI , . . , , BEFORE SHRI JOGINDER SINGH, J UDICIAL M EMBER , A ND SH RI N.K. BILLAIYA , A CCOUNTANT M EMBER ITA NO. 1702 /MUM/2013 ASSESSMENT YEAR: 20 06 - 07 IT O - 2 ( 1 ) ( 4 ) , R.NO. 553 AAYAKAR BHAVAN 101, M.K. ROAD MUMBAI 400 020 / VS. M/S. GO INVESTMENT & TRADING PVT. LTD., (PREVIOUSLY KNOWN AS SEVAKUNJ INVESTMENTS & TRADING CO. PVT. LTD.), NEVILLE HOUSE J.N. HEREDIA MARG, BALLARD ESTATE, MUMBAI 400 001 / APPELLANT / RESPONDENT P.A. NO. AACCS2156G C.O. NO. 83/MUM/2014 (ARISING OUT OF ITA NO.1702/MUM./2013 ASSESSMENT YEAR: 2006 - 07 M/S. GO INVESTMENT & TRADING PVT. LTD., (PREVIOUSLY KNOWN AS SEVAKUNJ INVESTMENTS & TRADING CO. PVT. LTD.), NEVILLE HOUSE J.N. HEREDIA MARG, BALLARD ESTATE, MUMBAI 400 001 / VS. ITO - 2(1)(4), R.NO.553 AAYAKAR BHAVAN 101, M.K. ROAD MUMBAI 400 020 / CROSS OB JECTOR / RESPONDENT P.A. NO.AACCS2156G M/S. GO INVESTMENT & TRADING PVT. LTD. 2 ITA NO. 1703/MUM/2013 ASSESSMENT YEAR: 2007 - 08 ITO - 2(1)(4), R.NO.553 AAYAKAR BHAVAN 101, M.K. ROAD MUMBAI 400 020 / VS. M/S. GO INVESTMENT & TRADING PVT. LTD., (PREVIOUSLY KNOWN AS SEVAKUNJ INVESTM ENTS & TRADING CO. PVT. LTD.), NEVILLE HOUSE J.N. HEREDIA MARG, BALLARD ESTATE, MUMBAI 400 001 / APPELLANT / RESPONDENT P.A. NO.AACCS2156G C.O. NO. 84/MUM/2014 (ARISING OUT OF ITA NO.1703/MUM./2013 ASSESSMENT YEAR: 2007 - 08 M/S. G O INVESTMENT & TRADING PVT. LTD., (PREVIOUSLY KNOWN AS SEVAKUNJ INVESTMENTS & TRADING CO. PVT. LTD.), NEVILLE HOUSE J.N. HEREDIA MARG, BALLARD ESTATE, MUMBAI 400 001 / VS. ITO - 2(1)(4), R.NO.553 AAYAKAR BHAVAN 101, M.K. ROAD MUMBAI 400 020 / CROSS OBJECTOR / RESPONDENT P.A. NO.AACCS2156G / REVENUE BY MS. AMRITA SINGH / ASSESSEE BY SHRI YOGESH THAR / DATE OF HEARING 2/6 /2015 / DATE OF ORDER : 05 / 6 /20 15 / O R D E R PER JOGINDER SINGH (JUDICIAL MEMBER) THE REVENUE IS AGGRIEVED BY THE IMPUGNED ORDER BOTH DATED 26 TH DECEMBER 2012 (A.Y. 2006 - 07 AND 2007 - 08). THE M/S. GO INVESTMENT & TRADING PVT. LTD. 3 ASSESSEE IS ALSO FILED CROSS OBJECTIONS WHICH ARE ARISING OUT OF THE ABOVE APPEALS FIL ED BY THE REVENUE. 2. AT THE OUTSET, THE LEARNED COUNSEL FOR THE ASSESSEE, SHRI YOGESH THAR, INVITED OUR ATTENTION TO THE APPLICATION / DECLARATION FILED U/S 158A(1) OF THE INCOME TAX ACT, 1961 (HEREINAFTER THE ACT ) FOR BOTH THE YEARS BY CONTENDING THAT THE APPEAL OF THE ASSESSEE IS PENDING BEFORE THE HONBLE JURISDICTIONAL HIGH COURT AND SUBSTANTIAL QUESTION OF LAW HAS BEEN ADMITTED, THEREFORE, TO CUT SHORT THE LITIGATION, ANY OUTCOME FROM THE HONBLE HIGH COURT WILL BE APPLICABLE TO BOTH THE PARTIES. T HE LEARNED D.R., MS. AMRITA SINGH, HAD NO OBJECTION TO THE APPLICATION OF THE ASSESSEE. 2.1 IN VIEW OF THE ABOVE, SINCE THE QUESTION OF LAW FOR THE ASSESSMENT YEAR 2004 - 05 AND 2005 - 06 IS IDENTICAL TO THE ISSUE FOR THE PRESENT ASSESSMENT YEARS AND THE DEP ARTMENT HAS FILED APPEAL BEFORE THE HONBLE HIGH COURT FOR BOTH THE ASSESSMENT YEAR 2004 - 05 AND 2005 - 06 AND THE HONBLE HIGH COURT HAS ADMITTED THE QUESTION OF LAW FILED BY THE DEPARTMENT, THEREFORE, ANY OUTCOME FROM THE HONBLE HIGH COURT WILL BE APPLICAB LE ON THE IDENTICAL ISSUES IN THE PRESENT APPEAL . IN OUR OPINION, THE PROPOSAL MADE BY THE ASSESSEE IS JUSTIFIED, THEREFORE, WE ADMIT THE DECLARATION MADE BY THE ASSESSEE . THEREFORE, THE DECISION ON THIS ISSUE IS KEPT IN ABEYANCE TILL THE OUTCOME FROM THE HONBLE HIGH COURT FOR THE EARLIER ASSESSMENT YEARS. M/S. GO INVESTMENT & TRADING PVT. LTD. 4 3. THE NEXT EFFECTIVE GROUND IS DISALLOWANCE MADE AS PER THE PROVISIONS OF SECTION 14A OF THE ACT. IN VIEW OF THE DECISION FROM THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF GODREJ & BOYCE MFG. CO. LTD., 328 ITR 81 (BOM.), THE ASSESSMENT YEARS BEFORE US ARE PRIOR TO 2008 - 09, THEREFORE, RULE 8D OF THE I.T. RULES, 1962, INSERTED IN THE I.T. ACT, 1961, W.E.F. 24 TH MARCH 2008, DOES NOT APPLY TO THE PRESENT APPEALS BEFORE US, THUS, ON THIS ISSUE, THE STAND OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) IS AFFIRMED. 3.1 INSOFAR AS THE CROSS OBJECTIONS OF THE ASSESSEE ARE CONCERNED, IN VIEW OF OUR ABOVE DECISION IN THE APPEAL OF THE REVENUE, THESE CROSS OBJECTIONS HAVE BECOME INFRUCTUOUS. FINALLY, THE APPEALS OF REVENUE ARE DISMISSED IN TERMS INDICATED HEREIN ABOVE AND THE CROSS OBJECTIONS OF THE ASSESSEE ARE DISMISSED AS INFRUCTUOUS. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF LEARNED REPRESENTATIVES FROM BOTH THE SIDES AT THE CONCLUSION OF THE HEARING ON 5 TH JUNE 2015 . SD/ SD/ ( N.K. BILLAIYA ) (JOGINDER SINGH) / ACCOUNTANT MEMBER / JUDICIAL MEMBER MUMBAI; DATED : 05 /06/2015 . / PRADEEP J. CHOWDHURY / SR. PRIVATE SECRETARY M/S. GO INVESTMENT & TRADING PVT. LTD. 5 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT, MUMBAI. 4 . / CIT(A) - , MUMBAI 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE. / BY ORDER, //TRUE COPY// / (DY ./ASSTT. REGISTRAR) , / ITAT, MUMBAI