COUGAR INVESTMENT P.LTD, MUMBAI V. CIT-1, MUMBAI

ITA 1886/MUM/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 101010 (ITAT-MUMBAI)
• Duration Of Justice: 5 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-09-2015
• Appeal Filed By: Assessee
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 31-03-2015
• Court: TRIBUNAL
• Department Lawyers: DEEPKANT PRASAD
• Keywords: Retrospective amendment; Accommodation entries; Capital receipt
• Section: 68; 263

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C , BENCH MUMBAI . . , , BEFORE SHRI R.C.SHARMA , A M & SHRI PAWAN SINGH , J M ./ ITA NO . 1886 / MUM/20 1 5 ( / ASSESSMENT YEAR : 20 10 - 20 11 ) M/S COUGAR INVESTMENT PVT. LTD., 183, KALYAN BHAVAN, JSS ROAD, OPP:GAIWADI, GIRGAUM, MUMBAI - 400004 VS. CIT - I, AAYAKAR BHAVAN, MUMBAI - 400020 ./ ./ PAN/GIR NO. : A A AC C 3518 L ( / APPELLANT ) .. ( / RESPONDENT ) /ASSESSEE BY : SHRI VIPUL JOSHI, & SHRI NISHIT GANDHI /REVENUE BY : SHRI DEEPKANT PRASAD / DATE OF HEARING : 24 /0 8 / 2015 / DATE OF PRONOUNCEMENT 11/09 /2015 / O R D E R PER R.C.SHARMA (A.M) : TH IS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT , MUMBAI , DATED 23 - 3 - 2015 , FOR THE ASSESSMENT YEAR 20 10 - 11 , IN THE MATTER OF ORDER PASSED U/S. 263 O F THE I.T.ACT . 2. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PERUSED. FACTS IN BRIEF ARE THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF FINANCING. DURING THE YEAR UNDER CONSIDERATION ASSESSEE RECEIVED SHARE APPLICATION MONEY ALONG WITH THE PREMIUM. THE CASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY AND SCRUTINY ASSESSMENT ORDER WAS PASSED U/S.143(3) OF THE ACT ITA NO. 1886 /1 5 2 ON 4 TH MARCH, 2013. THE CIT(A) INVOKED HIS POWER UNDER SECTION 263 ON THE FOLLOWING PLEA : - (I) THE SHARE PREMIUM AMOUNT RECEIVED BY ASSESSEE, WHI LE INCREASING THE ASSETS IN BALANCE - SHEET IN THE FORM OF CASH/BANK BALANCE DOES NOT CREATE ANY LIABILITY IN THE BALANCE SHEET. THIS AMOUNT OF PREMIUM GETS REFLECTED IN THE RESERVES AND UNDER THE COMPANYS ACT THE NATURE OF THESE RESERVES ARE SUCH WHICH CA N BE DISTRIBUTED TO THE SHARE HOLDERS IN THE FORM OF BONUS SHARES. THE RELEVANT PROVISIONS OF COMPANYS ACT APPLICABLE TO SHARE PREMIUM ARE U/S.78 OF COMPANYS ACT. WHAT CAN BE DISTRIBUTED TO SHARE HOLDERS OF ASSESSEE ARE ONLY PROFITS OR ACCUMULATED PROFIT S. THEREFORE, PRIMARY NATURE OF PREMIUM RECEIPT IS REVENUE AND THEREFORE CHARGEABLE TO TAX. (II) IN THE ALTERNATIVE, SINCE THE NATURE OF RECEIPT HAS NOT BEEN EXPLAINED, THE PREMIUM AMOUNT CREDITED IN THE BOOKS OF ACCOUNT IS CHARGEABLE TO TAX U/S.68 OF T HE ACT. ON THE ABOVE PLEA, THE CIT(A), HELD THAT THE ORDER OF ASSESSMENT IS ERRONEOUS AND PREJUDICIAL TO THE INTEREST OF REVENUE. THE ASSESSMENT ORDER WA S SET ASIDE WITH THE DIRECTION TO THE AO TO FRAME THE ASSESSMENT AFRESH TAKING INTO ACCOUNT THE OBSERV ATIONS MADE IN THIS ORDER . 3. IT WAS ARGUED BY THE LD. AR THAT BOTH THE CONDITIONS, THAT IS, THE ORDER BEING ERRONEOUS AS WELL AS PREJUDICIAL TO THE INTEREST OF REVENUE, AR E CUMULATIVE. EVEN IF AN ORDER IS PREJUDICIAL TO THE INTEREST OF THE REVENUE, NO R EVISION IS POSSIBLE IF IT IS NOT ERRONEOUS. THE PROVISION CANNOT BE INVOKED TO CORRECT EACH AND EVERY TYPE OF MISTAKE. HE FURTHER SUBMITTED THAT NO REVISION IF ITO ADOPTS & FOLLOWS ONE OF THE POSSIBLE METHODS/COURSE OF ACTION /VIEWS/CONCLUSIONS. THE MERE F ACT THAT ADOPTING SOME OTHER ALTERNATIVE METHOD COULD FETCH SOME MORE REVENUE OR THE COMMISSIONER IS NOT IN AGREEMENT WITH THE METHOD ADOPTED BY THE AO WOULD NOT RENDER THE ASSESSMENT ORDER ERRONEOUS AND PREJUDICIAL TO THE ITA NO. 1886 /1 5 3 INTEREST OF REVENUE. RELIANCE WAS PLACED ON THE DECISION OF HON BLE SUPREME COURT IN THE CASE OF SIMON CARVES LTD., 105 ITR 212, MALABAR INDUSTRIAL CO. LTD., 243 ITR 83, MAX INDIA LTD., 295 ITR 282. RELIANCE WAS ALSO PLACED ON THE DECISION OF HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF DESIGN AND AUTOMATION ENGINEERS (BOMBAY) PVT. LTD., 323 ITR 632 AND GABRIEL INDIA LTD., 203 ITR 108. TO SUBSTANTIATE THE CLAIM OF ISSUE OF SHARES AT PREMIUM, L D. AR CONTENDED THAT MR. DILIP DALAL, DIRECTOR OF M/S. COUGAR INVESTMENTS PRIVATE LIMITED , THE ASSESSEE COMPANY, HAS BEEN ASSOCIATED WITH CAPITAL MARKETS SINCE LAST 35 YEARS. HE IS IN THE INDUSTRY OF CAPITAL MARKETS SINCE THE EARLY AGE OF 20 YEARS. HE HAS GOT WIDE EXPERIENCE IN VARIOUS SEGMENTS OF STOCK MARKET, LIKE DERIVATIVES, ARBITRAGE, IPO'S, TECHNICAL ANALYSIS OF LISTED COMPANIES, CONSULTANCY SERVICES ETC. HE IS PROVIDING CONSULTANCY SERVICES TO MANY REPUTED BROKERS, LIKE SHERKHAN, ROSY BLUE SECURITIES, ETC., ON VARIOUS SEGMENTS AS MENTIONED ABOVE. HE HAS DEVOTED HIS ENTIRE TIME TO THIS INDUST RY AND HAS GOT THE FORESIGHT OF THE MARKET CONDITIONS. HAVING WORKED WITH MANY KNOWN BROKERS AND ADVISING THEM, HE HAS AN OVERALL KNOWLEDGE OF MARKET WHICH ENTAILS HIS CLIENTS TO MAKE VERY GOOD RETURNS ON THEIR INVESTMENTS, WHICH HAS CREATED HIS GOODWILL I N THE MARKET. H E HIMSELF DOES SHARE INVESTMENTS / TRADING ACTIVITIES IN HIS PERSONAL FILE AND HAS MADE VERY GOOD RETURNS ON INVESTMENTS AS IT CAN BE SEEN FROM BELOW THE CHART: INCOME F.Y.09 - 10 FY 10 - 11 FY 11 - 12 FY 12 - 13 FY 13 - 14 SHARE TRADING 1,34,87,566 41,64,803 54,38,818 2,24,69,860 2,52,81,543 RETURNED INCOME 1,40,06,262 48,71,440 76,59,147 2,26,54,589 3,75,43,751 ITA NO. 1886 /1 5 4 WITH HIS VAST EXPERIENCE AND CLIENTELES, IT WAS BUT A LOGICAL STEP TO ' CORPORATIZE ' HIS ACTIVITIES, SO AS TO FULLY CAPITALISE HIS VAST E XPERIENCE AND KNOWLEDGE. FOR THIS PURPOSE, HE WAS LOOKING OUT FOR AN ALREADY EXISTING COMPANY WHICH CAN BE TAKEN OVER BY HIM, SO AS TO SAVE TIME AN D COST IN FORMING A NEW COMPANY. A S MR. DILIP DALAL HAS A GOOD REPUTATION AS A FINANCIAL CONSULTANT VIZARD, E LDER GROUP, HAVING ELDER PHARMACEUTICALS LIMITED, A PUBLIC LIMITED COMPANY, AS ITS FLAGSHIP COMPANY, SHOWED KEEN INTEREST IN ASSOCIATING WITH MR. DILIP DALAL TO REAP THE BENEFITS OF HIS EXPERTISE. AS THE ENTIRE INTELLECTUAL CAPITAL WAS OF MR. DILIP DALAL, AND HE HAVING ALREADY INFUSED RS. 55 LACS, IT WAS MUTUALLY AGREED THAT THE ELDER GROUP, THROUGH ITS ASSOCIATE CONCERNS, WOULD PUMP IN THE REQUISITE FINANCE OF AROUND RS. 3 CRORES TO TAKE THE ACTIVITIES OF THE COMPANY AT HIGHER LEVEL, WITHOUT DILUTING THE C ONTROLLING INTEREST OF MR. DALAL OVER THE COMPANY. TOWARDS THIS, IT WAS MUTUALLY DECIDED, KEEPING IN MIND THE FUTURE PROSPECTS AND BASED ON VALUATION, THAT 1,24,000 SHARES WOULD BE ISSUED TO THEM AT PREMIUM OF RS. 240/ - PER SHARE. THIS WAS DONE IN TWO PHAS ES DURING THE YEAR. 4. WITH REGARD TO CITS ALLEGATION REGARDING NOT COMPLYING WITH THE PROVISIONS OF SECTION 78, LD. AR CONTENDED THAT THE ASSESSEE - COMPANY HAS NOT PASSED THE BENEFIT OF THE PREMIUM, DIRECTLY O R INDIRECTLY, TO ANY SHAREHOLDER OR ANY OUTS IDER AND HAS USED THE SHARE PREMIUM WHOLLY AND EXCLUSIVELY FOR THE PURPOSE OF ITS BUSINESS. ALL INVESTMENTS ARE IN BLUE CHIP/ A GROUP WELL KNOWN LISTED COMPANIES. THERE IS NO INVESTMENT IN ANY PRIVATE LIMITED COMPANY, MUCH LESS IN ANY RELATED COMPANY. FURTH ER, THE ITA NO. 1886 /1 5 5 TWO COMPANIES OF ELDER GROUP ARE STILL SHAREHOLDERS OF THE ASSESSEE - COMPANY. THERE IS NO CONNECTION BETWEEN PARANJPE GROUP AND ELDER GROUP. AS SUCH, ANY OTHER ULTERIOR MOTIVE IS TOTALLY RULED OUT. THE ASSESSEE - COMPANY UNDERTOOK AND FULFILLED AL L THE REQUISITE FORMALITIES UNDER THE COMPANIES ACT, 1956, INCLUDING THAT OF SECTION 78 OF THE COMPANIES ACT. IT FILED THE REQUISITE FORM 2 ALONGWITH VARIOUS ENCLOSURES, AT BOTH THE OCCASIONS. THIS HAS BEEN ACCEPTED BY THE REGISTRAR OF COMPANIES AND NO OBJ ECTION OF WHATSOEVER NATURE HAS BEEN TAKEN BY THEM SO FAR. SIMILARLY, THE ASSESSEE BEING A COMPANY, ITS ACCOUNTS ARE AUDITED UNDER THE COMPANIES ACT AND THE STATUTORY AUDITOR HAS CERTIFIED ITS ACCOUNTS - WHICH INCLUDE THE ASPECT OF SHARE PREMIUM - AS DEPIC TING TRUE AND FAIR STATUS OF AFFAIRS. 5. WITH REGARD TO CITS ALLEGATION REGARDING NO ENQUIRY BY THE AO, LD. AR CONTENDED THAT D URING THE ASSESSMENT PROCEEDING, THE A.O. MADE ALL THE REQUISITE AND NECESSARY , INQUIRIES REGARDING THE ISSUE OF SHARES, WHICH WAS DULY REPLIED BY THE ASSESSEE - COMPANY. FOR THIS PURPOSE OUR ATTENTION WAS INVITED TO PAGE 35 & 36 TO 42 OF THE PAPER BOOK PLACED ON RECORD. AS PER LD. AR PROVISIONS OF SECTION 68 HAS BEEN AMENDED W.E.F.1 - 4 - 2013 EFFECTIVE FROM THE ASSESSMENT YEAR 2013 - 1 4, WHEREAS THE ASSESSMENT YEAR UNDER CONSIDERATION WAS 2010 - 2011. ACCORDINGLY THE CIT WAS NOT CORRECT IN APPLYING IN AMENDED PROVISIONS WITH RETROSPECTIVE EFFECT. 6 . ON THE OTHER HAND, LD. AR CONTENDED THAT THE AO HAS NOT MADE FULL ENQUIRY WITH REGARD TO T HE NATURE OF SHARE PREMIUM RECEIVED BY IT. HE ITA NO. 1886 /1 5 6 FURTHER RELIED ON THE DECISION OF HONBLE KERALA HIGH COURT IN THE CASE OF P.V.SREENIJIN & ANR. V. CIT & ORS., 106 DTR 0087, HONBLE BOMBAY HIGH COURT IN THE CASE OF HINDUSTAN LEVER LTD., ITA NO.5818/2010, WHER EIN IT WAS OBSERVED THAT WHERE THE ORDER WAS PASSED BY THE AO WITHOUT APPLICATION OF MIND, THE SAME IS LIABLE TO BE SET ASIDE BY THE CIT U/S.263. 7 . WE HAVE C ONSIDERED THE RIVAL CONTENTIONS, CAREFULLY GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. WE HA D ALSO DELIBERATED ON THE JUDICIAL PRONOUNCEMENTS CITED AT BAR BY THE LD. AR AND DR IN THE CONTEXT OF FACTUAL MATRIX OF THE CASE. FROM THE RECORD, WE FOUND THAT THE CIT HAS INVOKED HIS POWERS U/S.263 ON THE PLEA THAT THE NATURE OF THE PREMIUM RECEIVED ON S HARE CAPITAL WAS REVENUE IN NATURE, THEREFORE, CHARGEABLE TO TAX . THE CIT ALSO OBSERVED THAT PROVISIONS OF SECTION 78 WERE APPLICABLE TO THE SHARE PREMIUM. AFTER GOING THROUGH THE ORDER OF THE CIT, WE FOUND THAT HE HAS NOT DISPUTED THE ENQUIRY MADE BY THE AO WITH REGARD TO ISSUE OF SHARE S AT PREMIUM INCLUDING SOURCES THEREOF. IT IS ALSO NOT THE CASE OF THE CIT THAT THERE WAS ANY INCRIMINATING MATERIAL ON RECORD, STATED ANY ADVERSE VIEW IN THIS REGARD NOR THERE IS ANY WHISPER IN THIS REGARD. WITH REGARD TO T HE SHARE CAPITAL RECEIPT, THE CIT ALSO NOT DOUBTED THAT ASSESSEE IS INVOLVED IN ANY ACCOMMODATION ENTRIES EVEN NO ADVERSE VIEW HAS BEEN TAKEN ABOUT THE ENQUIRIES ALREADY MADE BY THE AO. FURTHER THE CIT HAD CATEGORICALLY ACCEPTED AND ACKNOWLEDGED THAT THE A O HAD MADE VERIFICATION/INQUIRIES REGARDING THE SOURCE OF THE CASH CREDIT. FROM THE RECORD, WE ALSO FOUND THAT THE AO HAS MADE DIRECT ENQUIRY WITH TWO SHAREHOLDERS AS WELL AS WITH THE BANK. BOTH SHAREHOLDERS COMPANY WAS ITA NO. 1886 /1 5 7 ASSESSED TO TAX AND DULY RESPONDEND TO THE AOS NOTICE. THE BANK HAD ALSO REPLIED AOS NOTICE REGARDING SHARE CAPITAL RECEIVED FROM THESE COMPANIES. ASSESSEE HAS DULY FILED CONFIRMATION FROM THE SHARE APPLICANTS INCLUDING BALANCE SHEET, BANK STATEMENT, ETC. THE CIT STATED THAT THE AO HAS NOT MADE ANY ENQUIRY ABOUT THE NATURE OF RECEIPT IN TEMRS OF SECTION 68. WE FOUND THAT THE NATURE OF CASH CREDIT WAS SELF EVIDENCE, BEING THE AMOUNT RECEIVED ON ACCOUNT OF ISSUE OF SHARES AT PREMIUM. IN SUPPORT OF THE SHARES HAVING BEEN ISSUED AT PREMIUM AS SESSEE HAD FILED DULY AUDITED ACCOUNTS, CERTIFIED BY THE STATUTORY AUDITOR BEFORE THE AO. EVEN THE BACKGROUND OF PROMOT ER OF ASSESSEE COMPANY AS DISCUSSED ABOVE IN THE ARGUMENTS OF LD. AR CLEARLY JUSTIFY THE AMOUNT OF PREMIUM CHARGED ON THE SHARES. FURT HERMORE, IT IS THE WISDOM OF PERSON APPLYING FOR SHARE TO DETERMINE WHETHER TO BUY THE SHARES AT A PREMIUM OR NOT. REVENUE CANNOT STAND IN THE WAY OF PERSON OPTING TO BUY SHARE AT A PREMIUM INSOFAR AS SOURCES OF FUNDS ARE NOT IN DISPUTE. EVEN WITH RESPECT TO REQUIREMENT OF SECTION 78, THE ASSESSEE HAS FULFILLED ALL THE PRESCRIBED FORMALITIES UNDER THE COMPANIES ACT, 1956 BY FILING REQUISITE FORM NO.2 ALONG WITH ANNEXURES. THE REGISTRAR OF COMPANIES HAS ACCEPTED THE ISSUE OF SHARES AT PREMIUM AND NO ADVERSE VIEW HAS BEEN ADOPTED IN THIS REGARD. THUS, THE NATURE OF CASH CREDIT WAS ALSO EVIDENT AS PER THE DOCUMENTARY EVIDENCE PLACED ON RECORD. SO FAR AS NATURE OF RECEIPT ON ACCOUNT OF SHARE CAPITAL AND PREMIUM THEREON IS CONCERNED, BOTH ARE IN THE NATURE OF CAPITAL RECEIPT AND NOT IN THE NATURE OF INCOME. THE CIT HAS TRIED TO INVOKE SECTION 68 TO SEE THAT SHARE PREMIUM IS INCOME OF THE ITA NO. 1886 /1 5 8 ASSESSEE WITH RESPECT TO AMENDMENT BROUGHT BY THE FINANCE ACT, 2012 . HOWEVER, THE AMENDMENT IN SECTION 68 WAS BROUGHT BY THE FINANCE ACT, 2012 W.E.F1 - 4 - 2013, THEREFORE, THERE IS NO REASON TO TREAT THE SHARE PREMIUM AS INCOME DURING THE ASSESSMENT YEAR 2010 - 11 UNDER CONSIDERATION. THUS, CIT WAS NOT CORRECT IN INVOKING AMENDED PROVISIONS DURING THE YEAR UNDER CONSIDERATION. 8. THE HONBLE DELHI HIGH COURT IN THE CASE OF ANSHIKA CONSULTANTS PVT. LTD., ITA NO.467 OF 2014, ORDER DATED 16 - 4 - 2015, HELD THAT ONUS CASTS UPON THE ASSESSEE U/S.68 OF THE ACT IS TO SATISFY THE DEPARTMENT ABOUT THE TRUE IDENTITY OF AN INVESTOR, ITS CREDITWORTH INESS AND GENUINENESS OF A TRANSACTION. THE HONBLE HIGH COURT FURTHER OBSERVED THAT WHETHER THE ASSESSEE COMPANY CHARGED A HIGHER PREMIUM OR NOT, SHOULD NOT HAVE BEEN THE SUBJECT MATTER OF THE ENQUIRY IN THE FIRST INSTANCE. INSTEAD, THE ISSUE WAS WHETHER THE AMOUNT INVESTED BY THE SHARE APPLICANTS WERE FROM LEGITIMATE SOURCES. . 9. IN THE CASE OF GAGANDEEP INFRASTRUCTURE PVT. LTD., ITA NO.5784/MUM/2011, ORDER DATED 23 - 4 - 2014, THE MUMBAI TRIBUNAL HELD THA T ISSUE OF SHARES AT PREMIUM IS ALWAYS A COMMERCIAL DECISION WHICH DOES NOT REQUIRE ANY JUSTIFICATION. FURTHER THE PREMIUM IS A CAPITAL RECEIPT WHICH HAS TO BE DEALT WITH IN ACCORDANCE WITH SECTION 78 OF THE COMPANIES ACT, 1956. 10. AFTER GOING THOUGH THE MATERIAL PLACED ON RECORD, WE FOUND THAT THE AO HA S CALLED FOR FINANCIAL DETAILS OF THE COMPANIES AND ALSO EXAMINE D THE PARTIES IN ORDER TO SATISFY HIMSELF ABOUT THE GENUINENESS OF THE ITA NO. 1886 /1 5 9 TRANSACTION AND SOURCE OF MONEY . THUS, AFTER EXAMINING THE EVIDENCES AVAILABLE ON RECORD, THE AO HAS ACCEPTED THE CLAIM O F ASSESSEE REGARDING RECEIPT OF SHARE CAPITAL AT PREMIUM. THE COMMISSIONER HAS NOT FOUND ANY FAULT WITH THE DETAILS AND RECORDS THAT THE AO HAS NOT CONDUCTED THE PROPER ENQUIRY . WHEN THE ENTIRE RECORD WAS AVAILABLE WITH THE COMMISSIONER, HE OUGHT TO HAVE G IVEN A CONCLUDING FINDING THAT THE VIEW TAKEN BY THE AO IS CONTRARY TO THE LAW AS WELL AS FACTS EMERGING FROM THE RECORDS. HOWEVER, THE COMMISSIONER HAS NOT GIVEN ANY SUCH FINDING AND RESTORE THE MATTER TO THE RECORD OF THE AO WHICH IS NOT PERMISSIBLE AS P ER PROVISIONS OF SECTION 263 WHEN THE AO HAS CONDUCTED THE ENQUIRY AND ALLOWED THE CLAIM OF THE ASSESSEE ON THE BASIS OF THE EXAMINATION OF THE RECORD. WE HAVE ALSO FOUND THAT ASSESSEE COMPANY HAS FILED BANK STATEMENT OF THESE COMPANIES SHOWING THE TRANSAC TION OF PAYMENT OF SHARE PREMIUM. EVEN AS PER VERDICT OF THE HON BLE SUPREME COURT IN THE CASE OF LOVELY EXPORTS PVT. LTD., 317 ITR 218 , IF THE DEPARTMENT HAS ANY DOUBT REGARDING SUCH SHARE CAPITAL, THE DEPARTMENT IS AT LIBERTY TO HAVE INVESTIGATED/REOPENE D THE CASE OF SUCH S HARE APPLICANTS. 1 1 . IN VIEW OF THE ABOVE DISCUSSION, WE CAN CONCLUDE THAT SHARE CAPITAL RECEIVED BY THE ASSESSEE AT PREMIUM WAS GENUINE, NOT ONLY SOURCE OF THE FUND BUT ALSO GENUINENESS OF THE TRANSACTION WAS DULY ESTABLISHED. THE SHAR E PREMIUM SO RECEIVED WAS CAPITAL RECEIPT NOT LIABLE TO TAX DURING THE YEAR UNDER CONSIDERATION. NECESSARY ENQUIRIES WITH REGARD TO SHARE CAPITAL SO RECEIVED WAS MADE BY THE AO. ACCORDINGLY, THERE IS NO MERIT IN THE ORDER PASSED BY THE CIT U/S.263 OF THE I .T.ACT. ITA NO. 1886 /1 5 10 1 2 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. O RDER PRONOUNCED IN THE OPEN COURT ON THIS 11/09 / 201 5 . SD/ - SD/ - ( ) ( PAWAN SINGH ) ( . . ) ( R.C.SHARMA ) / JUDIC IAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; DATED 11/09 /201 5 . . /PKM , . / 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//