Appeal details
Counselvise Citation
[2020] 110 COUNSELVISE.COM (IT) 8378 (ITAT-MUMBAI)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
1 year(s) 1 month(s) 21 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
20-05-2020
Appeal Filed By
Department
Order Result
Dismissed
Bench Allotted
F
Assessment Year
2011-2012
Appeal Filed On
29-03-2019
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL F, BENCH MUMBAI BEFORE SHRI G. MANJUNATHA, ACCOUNTANT MEMBER & SHRI RAM LAL NEGI, JUDICIAL M EMBER ITA NOS. 1841 & 1842/MUM/2019 ( ASSESSMENT YEARS: 2011-12 & 2012-13 ) DCIT, CIRCLE-4(2)(2) ROOM NO.640, 6 TH FLOOR AAYKAR BHAWAN M.K.ROAD MUMBAI-400 020 VS. JBF INDUSTRIES LTD. 8 TH FLOOR EXPRESS TOWERS NARIMAN POINT MUMBAI-400 021 PAN/GIR NO. AAACJ2575J APPELLANT ) .. RESPONDENT ) ASSESSEE BY SHRI K. SHIVARAM, SR.COUNSEL-AR REVENUE BY SHRI CHAUDHARI ARUN KUMAR SINGH, DR DATE OF HEARING 16/03 /2020 DATE OF PRONOUNCEME NT 20/05/ 20 20 / O R D E R PER G.MANJUNATHA, ACCOUNTANT MEMBER : THESE TWO APPEALS FILED BY THE REVENUE ARE DIRECTED AGAINST SEPARATE, BUT IDENTICAL ORDERS OF THE LD. COMMISSIO NER OF INCOME TAX (APPEALS)-9, MUMBAI, BOTH DATED 28/01/2019 FOR THE ASST.YEARS 2011-12 AND 2012-13. SINCE, FACTS ARE IDENTICAL AND ISSUES ARE COMMON FOR THE SAKE OF CONVENIENCE, THESE APPEALS W ERE HEARD TOGETHER AND ARE DISPOSED-OFF BY THIS CONSOLIDATED ORDER. 2. THE REVENUE HAS MORE OR LESS RAISED COMMON GROUN DS OF APPEAL FOR BOTH ASST.YEARS. THEREFORE, FOR THE SAKE OF BREVITY, GROUNDS OF APPEAL FILED FOR AY 2011-12 ARE REPRODUC ED AS UNDER:- ITA NOS.1841 & 1842/MUM/2019 JBF INDUSTRIES .LTD. 2 1. 'ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD. CIT(A) ERRED IN ALLOWING THE CLAIM OF BUSINESS LOSS ON CURRENCY SWAP.' 2. 'THE LD.CIT(A) HAS ERRED IN NOT CONSIDERING THE FOLLOWING JUDGMENTS (A) THE DECISION OF HON'BLE SUPREME COURT IN THE CA SE OF MALABAR INDUSTRIAL CO. LTD. V. COMMISSIONER OF INCOME-TAX [ 2000] 109 TAXMAN 66 (SC) (B) THE DECISION OF HON'BLE BOMBAY HIGH COURT IN TH E CASE OF COMMISSIONER OF INCOME-TAX, NAGPUR Z'.BALLARPUR IND USTRIES LTD.* [2017] 85 TAXMANN.COM 10 (BOMBAY), (C)THE DECISION OF HON'BLE IT AT, HYDERABAD IN TH E CASE OF GATI LTD.??. ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE- 2 (2) AND HAS TREATED THE ORDER PASSED U/S 263 OF THE I.T .ACT, 1961 AS INVALID AND THEREBY THE ASSESSMENT ORDER.' 3. 'THE APPELLANT CRAVES LEAVE TO AMEND OR ALTER AN Y GROUND OR ADD A NEW GROUND WHICH MAY BE NECESSARY.' 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E COMPANY IS ENGAGED IN THE BUSINESS OF MANUFACTURING AND TRADIN G OF POY, POLYESTER CHIPS AND PTY. THE ASSESSEE HAS FILED ITS RETURN OF INCOME FOR AY 2011-12 ON 25/11/2011, DECLARING TOTA L INCOME OF RS.149,25,68,140/-. THE ASSESSEE HAS, SUBSEQUENTLY FILED REVISED RETURN OF INCOME ON 29/03/2013, DECLARING TOTAL INC OME AT RS.142,58,31,400/-. THE CASE WAS SELECTED FOR SCRUT INY AND DRAFT ASSESSMENT ORDER U/S 144C(3) R.W.S. 143(3) OF THE I .T.ACT, 1961 WAS PASSED ON 19/03/2015, DETERMINING THE TOTAL INCOME OF RS.175,87,36,460/-. THE ASSESSEE HAD FILED OBJECTIO NS AGAINST THE DRAFT ASSESSMENT ORDER BEFORE DRP-1, MUMBAI. THE FI NAL ASSESSMENT ORDER HAS BEEN PASSED ON 29/01/2016 U/S 143(3) R.W.S. 144C OF THE I.T.ACT, 1961 AND DETERMINED TOTAL INCO ME AT RS.173,93,44,920/-. SUBSEQUENTLY, THE PCIT-4, MUMBA I, VIDE ORDER U/S 263 OF THE I.T.ACT, 1961, DATED 24/03/2017 HAS INVOKED REVISIONAL JURISDICTION U/S 263 OF THE I.T.ACT, 1961 AND HAS S ET ASIDE THE ASSESSMENT ORDER WITH CERTAIN DIRECTIONS. THE ASSES SEE HAS CHALLENGED THE ORDER PASSED BY THE LD.PCIT U/S 263 OF THE ACT, BEFORE THE ITAT. THE ITAT, MUMBAI F BENCH IN ITA ITA NOS.1841 & 1842/MUM/2019 JBF INDUSTRIES .LTD. 3 NO.701/MUM/2018, VIDE ORDER DATED 16/11/2018 HAS SE T ASIDE 263 ORDER PASSED BY THE LD.PCIT AND RESTORED THE ASSESS MENT ORDER PASSED BY THE LD. AO. MEANWHILE, THE LD. AO HAS PAS SED ORDER U/S 143(3) R.W.S. 263 OF THE I.T.ACT, 1961, DATED 17/09 /2018 AND DETERMINED TOTAL INCOME AT RS.258,02,80,760/-. THE ASSESSEE CHALLENGED THE ORDER BEFORE THE FIRST APPELLATE AUT HORITY. THE LD.CIT(A) FOR THE DETAILED REASONS RECORDED IN HIS APPELLATE ORDER DATED 28/01/2019 HAS DELETED ADDITIONS MADE BY THE LD. AO ON THE BASIS OF DIRECTIONS OF THE LD.PCIT-4, MUMBAI IN PUR SUANCE OF ORDER PASSED U/S 263 OF THE I.T.ACT, 1961, ON THE GROUND THAT ONCE, THE 263 ORDER PASSED BY THE LD.PCIT HAS BEEN QUASHED, T HEN THE ASSESSMENT ORDER PASSED BY THE LD. AO U/S 143(3) R. W.S. 263 OF THE I.T.ACT, 1961,NO LONGER SURVIVES. AGGRIEVED BY THE LD.CIT(A) ORDER, THE REVENUE IS IN APPEAL BEFORE US. 4. WE HAVE HEARD BOTH THE PARTIES, PERUSED THE MATE RIAL AVAILABLE ON RECORD AND GONE THROUGH ORDERS OF THE AUTHORITIE S BELOW. AT THE TIME OF HEARING, THE LD. AR FOR THE ASSESSEE, AS WE LL AS THE LD. DR HAS FAIRLY AGREED THAT THE APPEAL FILED BY THE REVE NUE IS NOT MAINTAINABLE, BECAUSE THE LD.CIT(A) HAS DELETED ADD ITIONS MADE BY THE LD. AO, ON THE BASIS OF 263 ORDER PASSED BY TH E LD.PCIT, BUT THE U/S 263 ORDER PASSED BY THE LD.PCIT HAS BEEN SE T ASIDE BY THE ITAT. THEREFORE, ONCE, REVISIONAL ORDER PASSED BY T HE LD.PCIT HAS BEEN SET ASIDE BY THE ITAT, THEN ANY CONSEQUENTIAL ORDER PASSED BY THE LD. AO U/S 143(3) R.W.S. 263 OF THE I.T.ACT, 19 61, NO LONGER SURVIVES. WE FIND THAT THE ITAT F BENCH, MUMBAI I N ITA NO. 701/MUM/2018, VIDE ORDER 16/11/2018 HAS SET ASIDE O RDER PASSED BY THE LD.PCIT U/S 263 OF THE I.T.ACT, 1961. FURTHE R, ONCE ORDER PASSED BY THE LD.PCIT U/S 263 OF THE ACT, HAS BEEN SET ASIDE, THEN ITA NOS.1841 & 1842/MUM/2019 JBF INDUSTRIES .LTD. 4 THE ASSESSMENT ORDER PASSED BY THE LD. AO PURSUANT TO DIRECTIONS OF THE LD.PCIT, U/S 143(3) R.W.S. 263 OF THE I.T.ACT, 1961, NO LONGER SURVIVES. THE LD.CIT(A) AFTER CONSIDERING RELEVANT FACTS HAS RIGHTLY DELETED ADDITIONS MADE BY THE LD. AO. HENCE, WE ARE INCLINED TO UPHOLD THE FINDINGS OF THE LD.CIT(A) AND DISMISS AP PEAL FILED BY THE REVENUE. 5. IN THE RESULT, APPEAL FILED BY THE REVENUE IS DI SMISSED. ITA NO.1842/MUM/2019 6. THE FACTS AND ISSUES INVOLVED IN THIS APPEAL FIL ED BY THE REVENUE ARE IDENTICAL TO THE FACTS AND ISSUES, WHIC H WE HAD CONSIDERED IN ITA NO.1841/MUM/2019 FOR AY 2011-12. THE REASONS GIVEN BY US IN PRECEDING PARAGRAPH SHALL MUTATIS MUTANDIS APPLY TO THIS APPEAL, AS WELL. THEREFORE, FOR SIMILAR REASON S GIVEN IN ITA NO.1841/MUM/2019, WE DISMISS APPEAL FILED BY THE RE VENUE FOR AY 2012-13 7. IN THE RESULT, APPEAL FILED BY THE REVENUE FOR A Y 2011-12 & 2012-13 ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 20/05/ 2020 SD/- (RAM LAL NEGI) SD/- (G. MANJUNATHA) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED: 20/05/2020 ITA NOS.1841 & 1842/MUM/2019 JBF INDUSTRIES .LTD. 5 THIRUMALESH SR.PS COPY OF THE ORDER FORWARDED TO : BY ORDER, (ASSTT. REGISTRAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//
