BAJAJ INTERNATIONAL P. LTD, MUMBAI V. DCIT CIR 3(1), MUMBAI

ITA 1753/MUM/2009

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 1638 (ITAT-MUMBAI)
• Duration Of Justice: 7 year(s) 8 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 05-03-2015
• Assessment Year: 2003-2004
• Appeal Filed On: 18-03-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJAT MITTAL
• Assessee Lawyers: VASANTIBEN PATEL
• Keywords: Reopening of assessment; Reassessment proceedings
• Section: 143(3); 147; 148; 37

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL 'F' BENCH, MUMBAI BEFORE SHRI JASON P. BOAZ, ACCOUNTANT MEMBER AND SHRI SANDEEP GOSAIN , JUDICIAL MEMBER ITA NO.6837/MUM/2008 - (ASSESSMENT YEAR: 2005-06) ITA NO.1753/MUM/2009 - (ASSESSMENT YEAR: 2003-04) M/S. BAJAJ INTERNATIONAL P. LTD. VS. DCIT, CIRCLE 3(1) BAJAJ BHAVAN 226, NARIMAN POINT MUMBAI 400021 AAYAKAR BHAVAN M.K. ROAD MUMBAI 400020 PAN AAACB0478J APPELLANT RESPONDENT APPELLANT BY: MS. VASANTIBEN PATEL RESPONDENT BY: SHRI RAJAT MITTAL DATE OF HEARING: 24.11.2016 DATE OF PRONOUNCEMENT: 30.11.2016 O R D E R PER JASON P. BOAZ, A.M. THESE APPEALS BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDERS OF THE CIT(A)-XXVII, MUMBAI DATED 30.12.2008 FOR A.Y. 2003 -04 AND DATED 29.08.2008 FOR A.Y. 2005-06. SINCE COMMON ISSUE IS INVOLVED, THE APPEALS WERE HEARD TOGETHER AND ARE BEING DISPOSED OFF BY W AY OF THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2. THE FACTS OF THE CASE, BRIEFLY, ARE AS UNDER: - 2.1 THE ASSESSEE IS A COMPANY ENGAGED MAINLY IN THE BUSINESS OF TRADING IN EXPORT OF ELECTRICAL GOODS AND APPLIANCES. FOR A.Y. 2003-04 , THE ASSESSEE FILED ITS RETURN OF INCOME ON 27.11. 2003 DECLARING TOTAL INCOME OF ` 90,14,086/-. THE RETURN WAS PROCESSED UNDER SECTION 143(1) OF THE INCOME TAX ACT, 1961 (IN SHOR T 'THE ACT') AND THE CASE WAS TAKEN UP FOR SCRUTINY. THE ASSESSMENT WAS COMPL ETED UNDER SECTION 143(3) OF THE ACT VIDE ORDER DATED 28.02.2006 WHERE IN THE TOTAL INCOME WAS DETERMINED AT ` 97,42,780/-. PROCEEDINGS FOR REASSESSMENT WERE INIT IATED UNDER SECTION 147 OF THE ACT AND AFTER RECORDING RE ASONS FOR BELIEF IN RESPECT ITA NOS. 6837 & 1753/MUM/2008 M/S. BAJAJ INTERNATIONAL P. LTD. 2 OF THE ASSESSEES INCOME WHICH HAD ESCAPED ASSESSME NT ON ACCOUNT OF ILLEGAL PAYMENTS OF COMMISSION TO THE IRAQI GOVERNM ENT UNDER THE OIL FOR FOOD PROGRAMME, THE ASSESSING OFFICER (AO) ISSUED NOTICE UNDER SECTION 148 OF THE ACT DATED 10.11.2006. THE ASSESSMENT WAS COMPLETED UNDER SECTION 143(3) R.W.S. 147 OF THE ACT VIDE ORDER DAT ED 31.10.2007 WHEREIN THE INCOME OF THE ASSESSEE WAS DETERMINED AT ` 99,76,169/- IN VIEW OF, INTER ALIA, THE DISALLOWANCE OF ` 2,33,389/- WHICH THE AO HELD TO BE ILLEGAL COMMISSION PAID BY THE ASSESSEE TO THE GOVERNMENT O F IRAQ. ON APPEAL, THE LEARNED CIT(A)-XXVII, MUMBAI VIDE THE IMPUGNED ORDER DATED 30.12.2008 ALLOWED THE ASSESSEE PARTIAL RELIEF. FOR A.Y. 2005-06 , THE ASSESSEE FILED ITS RETURN OF INCOME ON 31.10. 2005 DECLARING INCOME OF ` 83,84,740/-. THE CASE WAS TAKEN UP FOR SCRUTINY AND THE ASSESSMENT WAS COMPLETED UNDER SECTION 143(3) O F THE ACT VIDE ORDER DATED 31.10.2007, WHEREIN THE INCOME OF THE ASSESSE E WAS DETERMINED AT ` 1,21,29,337/-, IN VIEW OF THE DISALLOWANCE OF ` 37,44,597/- WHICH THE AO HELD TO BE ILLEGAL COMMISSION PAID BY THE ASSESSEE TO THE GOVERNMENT OF IRAQ. ON APPEAL, THE LEARNED CIT(A) DISMISSED THE A SSESSEES APPEAL VIDE THE IMPUGNED ORDER DATED 29.08.2008. 3. AGGRIEVED BY THE ORDERS OF THE CIT(A)-XXVII, MUMBAI DATED 30.12.2008 FOR A.Y. 2003-04 AND DATED 29.08.2008 FO R A.Y. 2005-06, THE ASSESSEE HAS PREFERRED THESE APPEALS RAISING IDENTI CAL GROUNDS ON MERITS. THE GROUNDS ARE EXTRACTED HEREUNDER: - 3.1 ASSESSMENT YEAR - 2003-04 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE COMMISSIONER OF INCOME-TAX (APPEALS) ERRED IN UPHOL DING THE ACTION OF THE DEPUTY COMMISSIONER OF INCOME-TAX IN RE-OPEN ING THE ASSESSMENT UNDER SECTION 148. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE COMMISSIONER OF INCOME-TAX (APPEALS) ERRED IN UPHOL DING THE ACTION OF THE DEPUTY COMMISSIONER OF INCOME-TAX IN DISALLO WING AN AMOUNT OF RS.2,33,389/- OUT OF COMMISSION PAID IN R ESPECT OF EXPORTS MADE TO IRAQ. 3.2 ASSESSMENT YEAR - 2005-06 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE COMMISSIONER OF INCOME-TAX (APPEALS) ERRED IN UPHOL DING THE ACTION OF THE DEPUTY COMMISSIONER OF INCOME-TAX IN DISALLO WING AN ITA NOS. 6837 & 1753/MUM/2008 M/S. BAJAJ INTERNATIONAL P. LTD. 3 AMOUNT OF RS.37,44,597/- OUT OF COMMISSION PAID IN RESPECT OF EXPORTS MADE TO IRAQ. 4. GROUND NO. 2 (A.Y. 2003-04) AND GROUND NO. 1 (A.Y. 2005-06) DISALLOWANCE OF COMMISSION PAID IN RESPECT OF EXPOR TS TO IRAQ 4.1 IN THESE COMMON GROUNDS THE ASSESSEE ASSAILS TH E ORDERS OF THE LEARNED CIT(A) IN UPHOLDING THE AOS DISALLOWANCE O F ` 2,33,389/- AND ` 37,44,597/- FOR ASSESSMENT YEARS 2003-04 AND 2005- 06 RESPECTIVELY OUT OF COMMISSION PAID IN RESPECT OF EXPORTS MADE TO IR AQ. AT THE OUTSET OF THE HEARING BEFORE US, THE LEARNED A.R. OF THE ASSESSEE SUBMITTED THAT THIS ISSUE HAS BEEN DEALT WITH AND HELD IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE BY A COORDINATE BENCH OF THE TRIBUNAL I N THE CASE OF METRO EXPORTERS PVT. LTD. IN ITA NO. 2026/MUM/2008 FOR A. Y. 2002-03 VIDE ORDER DATED 08.06.2016, FOLLOWING THE DECISION OF T HE HON'BLE CALCUTTA HIGH COURT IN THE CASE OF CIT VS. RAJRANI EXPORTERS PVT. LTD. (AIT 2013-75- HIGH COURT) AND COORDINATE BENCH DECISIONS IN THE C ASE OF NSIL EXPORTS LTD. VS. DCIT (2014) 44 TAXMANN.COM 246 AND AIR PAC EXPORTS VS. ACIT 152 ITD 634 (MUMBAI ITAT). IT WAS PRAYED THAT IN VI EW OF THE ABOVE, THE ASSESSEES APPEAL BE ALLOWED ON THIS POINT. 4.2 PER CONTRA, THE LEARNED D.R. FOR REVENUE PLACED STRONG RELIANCE ON THE ORDERS OF THE AUTHORITIES BELOW. 4.3.1 WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUS ED AND CAREFULLY CONSIDERED THE MATERIAL ON RECORD, INCLUDING THE JU DICIAL PRONOUNCEMENTS CITED. THE FACTS OF THE MATTER AS EMANATE FROM THE RECORD ARE THAT IN BOTH THESE CONCERNED ASSESSMENT YEARS 2003-04 AND 2005-0 6, THE ASSESSEE COMPANY EXPORTED GOODS TO IRAQ UNDER THE UNO OIL F OR FOOD SCHEME AND IN THIS CONNECTION HAD PAID COMMISSION TO ITS AGENT M/S. WINTER INTERNATIONAL LTD., JORDAN FOR PROVIDING SERVICES T O THEM AND REALIZATION OF EXPORT PROCEEDS SUCH AS: - (A) INFORMING THE ASSESSEE COMPANY ABOUT NEW TENDER S WHICH ARE ISSUED IN IRAQ; (B) ARRANGING DOCUMENTS REQUIRED FOR SUBMISSION OF TENDER APPLICATION; (C) APPLICATION MADE FOR TENDERS; (D) TENDER PARTICIPATION IN IRAQ; (E) PROCUREMENT OF ORDERS; ITA NOS. 6837 & 1753/MUM/2008 M/S. BAJAJ INTERNATIONAL P. LTD. 4 (F) OBTAINING LC ON BEHALF OF THE ASSESSEE COMPANY; (G) OBTAINING PAYMENT THROUGH BANK AGAINST LC 4.3.2 THE AUTHORITIES BELOW, CITING THE VOLCKER COM MITTEE REPORT WHICH REPORTED THAT ILLICIT KICKBACKS AND SURCHARGES WERE PAID BY MORE THAN 2000 COMPANIES TO THE IRAQI GOVERNMENT IN PURSUANCE OF THE OIL FOR FOOD PROGRAMME, IN VARIOUS NOMENCLATURES LIKE INLAND TR ANSPORTATION FEE, LOADING FEE, COMMISSION, ETC., HELD THAT THE COMMIS SIONS PAID BY THE ASSESSEE TO ITS AGENT WINTER INTERNATIONAL LTD. WER E ACTUALLY NOTHING BUT ILLICIT PAYMENTS TO THE IRAQI GOVERNMENT. IN OUR CO NSIDERED VIEW, BASED ON THE FACTS ON RECORD, WE FIND THAT THE COMMISSION PA YMENTS MADE BY THE ASSESSEE TO ITS AGENT M/S. WINTER INTERNATIONAL LTD ., JORDAN WERE FOR SERVICES THAT HAVE BEEN RENDERED BY ITS AGENT TO TH E ASSESSEE IN CONSIDERATION OF THE SAME. IT IS NOT REVENUES CASE THAT NO SERVICES HAVE BEEN RENDERED TO THE ASSESSEE BY THE AGENT. FURTHER , NOTHING HAS BEEN BROUGHT ON RECORD BY REVENUE TO SHOW THAT THE TRANS ACTIONS RELATING TO THE PAYMENT OF COMMISSION BY THE ASSESSEE ARE EITHER NO N GENUINE OR ARE EXCESSIVE OR UNREASONABLE. THE VOLCKER COMMITTEE RE PORT, CITED BY REVENUE, HAD DISCUSSED ABOUT THE UTILIZATION OF MON EY BY THE RECIPIENT OF THE COMMISSION IN PAYING OF SUCH COMMISSION SO RECE IVED TO THE GOVERNMENT OF IRAQ ILLICITLY, WHICH WAS OBJECTED TO BY THE VOLCKER COMMITTEE. FROM A CASUAL PERUSAL OF THE DETAILS ON RECORD AND IN THE ORDERS OF THE AUTHORITIES BELOW IT HAS NOT BEEN PRO VED THAT THE ASSESSEE COMPANY WAS INVOLVED IN ILLICIT PAYMENTS OF COMMISS ION TO THE IRAQI GOVERNMENT. THEREFORE IT CANNOT BE CONCLUDED THAT C OMMISSION PAYMENTS WERE NOT MADE FOR THE PURPOSE OF ASSESSEES BUSINES S. EXPLANATION TO SECTION 37 OF THE ACT CANNOT BE INVOKED MERELY ON T HE BASIS OF AN UNESTABLISHED DOUBT THAT EXPENDITURE INCURRED COULD BE FOR INFRACTION OF LAW. 4.3.3 ON SIMILAR FACTS AS IN THE CASE ON HAND, THE COORDINATE BENCH OF THE TRIBUNAL IN THE CASE OF METRO EXPORTS P. LTD. IN IT A NO. 2026/MUM/2008 DATED 08.06.2016, FOLLOWING THE DECISIONS OF THE HO N'BLE CALCUTTA HIGH COURT IN THE CASE OF CIT VS. RAJRANI EXPORTS (AIT 2 013-75-HIGH COURT) AND OTHER COORDINATE BENCHES IN THE CASE OF NSIL EXPORT S LTD. (2014) 44 ITA NOS. 6837 & 1753/MUM/2008 M/S. BAJAJ INTERNATIONAL P. LTD. 5 TAXMANN.COM 246 AND AIR PAC EXPORTS LTD. (152 ITD 6 34) HAS DECIDED THIS ISSUE IN FAVOUR OF THE ASSESSEE HOLDING AS UNDER AT PARAS 7 AND 8 THEREOF, AS UNDER: - 7. GROUND NO.5 RAISED IN THE PRESENT APPEAL IS IN RESPECT OF COMMISSION OF EXPORT TO IRAQ. AR OF ASSESSEE ARGUED THAT THIS GROUND OF APPEAL IS ALSO COVERED IN FAVOUR OF ASSESSEE BY THE ORDER HONBLE CALCUTTA HIGH COURT IN CIT VS. RAJRANI EXPORT (AIT 2013-75- HIGH COURT) AND CO-ORDINATE BENCH OF ITAT, MUMBAI IN NSI L EXPORTS LTD. VS. DCIT [2014] 44.TAXMAN.COM. 246, AND AIR PAC EXP ORTS VS. ACIT (152 ITD 634), MUMBAI. ON THE OTHER HAND, LD. DR FO R THE REVENUE ARGUED THAT THIS GROUND OF APPEAL IS COVERED AGAINS T THE ASSESSEE BY THE ORDER OF ITAT MUMBAI VIDE ITA NO. 7285 TO 7286/ M/2007 IN CASE TITLED AS M/S CIPLA LTD. VS. DCIT. WE HAVE CONSIDER ED THE RIVAL CONTENTION OF AR AS WELL AS DR OF THE PARTIES AND G ONE THROUGH THE ORDER PASSED BY THE HONBLE CALCUTTA HIGH COURT AND VARIOUS TRIBUNALS ON THE ISSUE OF PAYMENT OF COMMISSION TO GOVERNMENT OF IRAQ. THE HONBLE CALCUTTA HIGH COURT WHILE DEALING WITH THE GROUNDS OF APPEAL RAISED BY REVENUE HELD AS UNDER: THE COMMISSION ON EXPORT ACTIVITY HAD BEEN FULLY D ISCLOSED IN ALL CORRESPONDENCES AND AN ACTIVITY IN RELATION TO EXPO RT, THE COMMISSION WAS PAID THROUGH BANKING CHANNEL OF RBI APPROVAL AND IT WAS PAID PURSUANT TO AN AGREEMENT APPROVED B Y GOVERNMENT OF INDIA AND UN. THE PAYMENT OF COMMISSI ON WAS FOR BUSINESS CONSIDERATION AND THERE WAS APPARENTLY NO ILLEGALITY IN MAKING PAYMENT OF COMMISSION. BESIDES THIS, NOTH ING HAS BROUGHT ON RECORD TO SHOW THAT THE TRANSACTIONS REL ATING TO PAYMENT OF COMMISSION ARE NON-GENUINE OR ARE EXCESS IVE AND UNREASONABLE. THE VOLKER COMMISSION REPORT HAD DISC USSED ABOUT THE UTILIZATION OF MONEY BY THE RECIPIENT OF THE COMMISSION IN PARTING SOME OF THE FUND SO RECEIVED AS COMMISSI ON WITH THE GOVERNMENT OF IRAQ AND SUCH PARTING OF COMMISSION W ITH THE GOVERNMENT OF IRAQ WAS OBJECTED TO BY THE VOLKER CO MMISSION REPORT WHICH WAS A PACT BETWEEN THE IRAQ GOVERNMENT AND THE UN WHEREIN, AS IT APPEARS, NEITHER THE APPELLANT CO MPANY IS INVOLVED NOR GOVERNMENT OF INDIA IS INVOLVED. FURTHER, THE CO-ORDINATE BENCH OF ITAT IN NSIL EXPO RT LTD. VS. DCIT [2014] 44.TAXMANN.COM 246- MUM WHILE DEALING WITH S IMILAR GROUND OF APPEAL HELD AS UNDER: THEREFORE, UNTIL AND UNLESS IT IS OTHERWISE PROVED THAT THE PAYMENT WAS AN ILLICIT PAYMENT TO THE SADDAM HUSSAI N REGIME AND NOT TO THE PARTIES IT CANNOT BE CONCLUDED THAT THE SAID PAYMENTS ARE NOT MADE FOR THE PURPOSE OF BUSINESS O F THE ASSESSEE. THE EXPLANATION TO SECTION 37 CANNOT BE I NVOKED MERELY ON THE BASIS OF SOME DOUBT ABOUT EXPENDITURE WHETHER MADE INFRACTION OF LAW. THERE SHOULD BE A DIRECT AN D COGENT EVIDENCE TO SHOW THAT THE PAYMENT MADE BY THE ASSES SEE IS CONTRARY TO LAW. THE AUTHORITIES BELOW FAILED TO BR ING ANYTHING ON ITA NOS. 6837 & 1753/MUM/2008 M/S. BAJAJ INTERNATIONAL P. LTD. 6 RECORD TO ESTABLISH THAT THE PAYMENTS IN QUESTION W ERE ILLEGALLY MADE BY THE ASSESSEE TO THE IRAQI AUTHORITIES. ON T HE CONTRARY, THE ASSESSEE HAS PRODUCED THE EVIDENCE OF PAYMENT T O THE AGENT WHO IS NOT CONNECTED TO THE IRAQI AUTHORITIES. THER EFORE, IN THE ABSENCE OF SPECIFIC FINDING THAT THE PAYMENTS WERE MADE TO THE IRAQI AUTHORITIES, IT CANNOT BE HELD AS ILLEGAL PAY MENT INFRACTION OF LAW. EVEN IF THE ASSESSEE FAIL TO PROVE BEYOND D OUBT THAT THE PAYMENTS IN QUESTION INCONSONANCE TO THE SERVICE RE NDERED BY THE AGENT THE SAME CANNOT BE HELD AS ILLEGAL IN THE ABSENCE OF ANY EVIDENCE TO PROVE THAT THE ASSESSEE INTENDED TO PAY THE AMOUNT ILLEGALLY THROUGH AGENT. SIMILAR VIEW WAS TAKEN BY CO-ORDINATE BENCH OF MUMB AI TRIBUNAL IN AIR PAC EXPORTS V/S ACIT [152 ITD 634]-MUM IN ITA N O. 2981 TO 2983/M/2012 FOR AY-2001-02 TO 2002-03 VIDE ORDER DA TED 11.06.2014. WE HAVE ALSO GONE THROUGH THE ORDER OF CO-ORDINATE BENCH OF THIS TRIBUNAL IN M/S CIPLA LTD. VS. DCIT V IDE ORDER DATED 27.09.2009, RELIED BY LD. DR FOR REVENUE, WHEREIN T HIS TRIBUNAL HAS TAKEN A CONTRARY VIEW. WE HAVE NOTICED THAT THE ORD ER PASSED IN M/S CIPLA LTD. WAS DIFFERENTIATED BY COORDINATE BENCH O F THIS TRIBUNAL IN NSIL EXPORTS LTD. (SUPRA) HOLDING THAT, CIPLA WAS I NVOLVED IN ILLICIT PAYMENT MADE TO IRAQ GOVERNMENT AS PER VOLKER COMMI TTEE REPORT HOLDING AS UNDER: 35. IT IS SEEN THAT THE REVENUE AUTHORITIES AS WEL L AS THE DR PLACED HEAVY RELIANCE ON THE DECISION OF CIPLA LTD. VS. ACIT, ITA NO. 7284 TO 7286/MUM/2007, WHEREIN THE COORDINATE B ENCH AT MUMBAI, CAME TO THE CONCLUSION THAT, CIPLA WAS INVO LVED IN ILLICIT PAYMENT MADE TO IRAQ GOVERNMENT, AS PER VOLCKER REP ORT. IT HAS BEEN HELD BY THE COORDINATE BENCH IN PARA 7.1 THAT THE ASSESSEE HAS NOT DENIED PAYMENT OF ASSF. IN PARA 3 OF THE OR DER, THE ORDER MENTIONS ABOUT THE PAYMENTS TOWARDS ASSF AND ON WHICH BASIS, THE CASES WERE REOPENED. 36. HOWEVER, IN THE INSTANT CASE, THE FACTS ARE DIF FERENT. THE DISPUTE IS WITH REGARD TO PAYMENT MADE TO DALALA & COMPANY, FROM WHERE, THE ALLEGED ILLICIT PAYMENT MAY HAVE BE EN PAID. IN SUCH A SITUATION, WHEN THE FACTS THEMSELVES ARE AT VARIANCE, THE DECISION OF CIPLA (SUPRA) CANNOT BE RELIED UPON. TH IS ARGUMENT OF THE DEPARTMENT HAS TO BE REJECTED. 8. HENCE, KEEPING IN VIEW THE ABOVE DISCUSSION AND THE LEGAL POSITION, AND KEEPING IN VIEW THE ORDER OF CALCUTTA HIGH COUR T (SUPRA), THIS GROUND OF APPEAL IS COVERED IN FAVOUR OF ASSESSEE. HENCE, THIS GROUND OF APPEAL IS ALLOWED IN FAVOUR OF ASSESSEE. 4.3.4 IN THE FACTUAL MATRIX OF THE CASE AS DISCUSSE D FROM PARAS 4.1 TO4.3.3 OF THIS ORDER (SUPRA) AND RESPECTFULLY FOLLOWING TH E DECISIONS OF THE HON'BLE HIGH COURT OF CALCUTTA IN THE CASE OF CIT VS. RAJRA NI EXPORT (SUPRA) AND OF THE COORDINATE BENCH IN THE CASE OF METRO EXPORTS P . LTD. (SUPRA) AND NSIL ITA NOS. 6837 & 1753/MUM/2008 M/S. BAJAJ INTERNATIONAL P. LTD. 7 EXPORTS LTD. (SUPRA), WE ALLOW THE ASSESSEES APPEA L ON THIS GROUNDS FOR BOTH ASSESSMENT YEARS 2003-04 AND 2005-06. 5. GROUND NO. 1 (A.Y. 2003-04) VALIDITY OF REOPENING OF ASSESSMENT UNDER SECTION 148 5.1 IN THIS GROUND, THE ASSESSEE HAS CHALLENGED THE VALIDITY OF THE REASSESSMENT PROCEEDINGS TAKEN UP UNDER SECTIONS 14 7/148 OF THE ACT BY THE AO FOR A.Y. 2003-04. IN VIEW OF THE FACT THAT T HE ASSESSEES GRIEVANCE, AS RAISED ON MERITS IN GROUND NO. 2 (SUPRA), HAS BE EN ADDRESSED BY US AT PARAS 4.1 TO 4.3.4 OF THIS ORDER AND DECIDED IN FAV OUR OF THE ASSESSEE, WE DO NOT DEEM IT NECESSARY TO ADJUDICATE ON THIS TECH NICAL ISSUE RAISED BY THE ASSESSEE AT THIS JUNCTURE AS THIS GROUND IS RENDERE D ONLY ACADEMIC IN NATURE. 6. IN THE RESULT, THE ASSESSEES APPEALS FOR ASSESSMEN T YEARS 2003-04 AND 2005-06 ARE ALLOWED AS INDICATED ABOVE. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH NOVEMBER, 2016. SD/ - SD/ - (SANDEEP GOSAIN) (JASON P. BOAZ) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DATED: 30 TH NOVEMBER, 2016 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) -XXVII, MUMBAI 4. THE CIT - 3, MUMBAI 5. THE DR, F BENCH, ITAT, MUMBAI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI N.P.