DCIT 1(3), MUMBAI V. TRIFORCE INFRASTRUCTURE (I) P.LTD, MUMBAI

ITA 1890/MUM/2014

• Counselvise Citation: 189019914 RSA 2014
• Duration Of Justice: 1 year(s) 2 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-06-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2007-2008
• Appeal Filed On: 20-03-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K DHONDIALDR
• Assessee Lawyers: SHRUTI GHIA
• Keywords: Business expenditure

Judgement Text

, - , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES SMC, MUMBAI ,!' , BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER, ITA NO.1890/MUM/2014 ASSESSMENT YEAR:2007-08 DY. COMMISSIONER OF INCOME TAX-1(3), 564, 5 TH FLOOR, AAYAKAR BHAWAN, M.K.ROAD, MUMBAI-400020 / VS. M/S TRIFORCE INFRASTRUCTURE (I) PVT. LTD. B-315, 3 RD FLOOR, 33-A. LOTUS HOUSE, NR. LIBERTY CINEMA, MARINE LINES MUMBAI-400021 / REVENUE / ASSESSEE P.A. NO. AABCT6981H $%& / REVENUE BY SHRI A.K.DHONDIAL-DR $%& / ASSESSEE BY MS. SHRUTI GHIA / DATE OF HEARING 11/06/2015 & / DATE OF ORDER: 12/06/2015 &/ O R D E R THE REVENUE IS AGGRIEVED BY THE IMPUGNED ORDER DAT ED 09/12/2013 OF THE LD. FIRST APPELLATE AUTHORITY, MU MBAI, ON THE GROUND THAT THE LD. COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN DIRECTING THE ASSESSING OFFICER TO ALLOW THE LOSSES IN FUTURE AND OPTIONS TRANSACTIONS, LOSSES I N TRADING OF ITA NO.1890/MUM/2014 M/S TRIFORCE INFRASTRUCTURE (I) PVT. LTD 2 SHARES AND BUSINESS EXPENDITURE INCURRED DURING THE YEAR EVEN THOUGH THE BUSINESS OF THE ASSESSEE DID NOT CO MMENCE DURING THE YEAR. 2. AT THE TIME OF HEARING, SHRI A.K. DHONDIAL, LD. DR, DEFENDED THE CONCLUSION ARRIVED AT IN THE ASSESSMEN T ORDER, BY ADVANCING HIS ARGUMENTS IDENTICAL TO THE GROUND RAISED, WHEREAS, MS. SHRUTI GHIA, LD. COUNSEL FOR THE ASSES SEE, DEFENDED THE CONCLUSION ARRIVED AT IN THE IMPUGNED ORDER. 2.1. I HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. I FIND T HE MAIN BUSINESS OF THE ASSESSEE IS TO CARRY OUT INFRASTRUC TURE PROJECTS FOR WHICH THE ASSESSEE COMPANY COLLECTED S HARE APPLICATION MONEY ALSO. AS PER THE ASSESSEE, DUE T O UNFAVOURABLE CIRCUMSTANCES, THE ASSESSEE DID NOT GE T ANY INFRASTRUCTURE CONTRACT, THEREFORE, HE DECIDED TO D EPLOY THE AVAILABLE SURPLUS FUNDS, COLLECTED FOR INFRASTRUCTU RE ACTIVITY, IN THE STOCK EXCHANGE MARKET. THE ASSESSEE FURNISH ED ALL THESE DETAILS TO THE ASSESSING OFFICER REGARDING TH E RECEIPT OF SHARE APPLICATION MONEY, LOSS INCURRED IN FUTURE AN D OPTIONS TRANSACTIONS, SHARE BUSINESS ALONG WITH THE DETAILS OF BUSINESS EXPENDITURE INCURRED BY THE ASSESSEE. THE ASSESSING OFFICER WITHOUT PROVIDING DUE OPPORTUNITY TO THE ASSESSEE, AS HAS BEEN CLAIMED, IN THE SAME BREATH, ASSESS THE INCOME FROM SPECULATION BUSINESS OF SHARES AND GAINS IN THE FUTURE OPTIONS TRANSACTIONS. THE ASSESSING OFF ICER MADE ITA NO.1890/MUM/2014 M/S TRIFORCE INFRASTRUCTURE (I) PVT. LTD 3 THE ADDITION BY QUOTING MAIN OBJECTS GIVEN IN THE M OU (PARA 6.1 OF THE ASSESSMENT ORDER) LIKE THE ASSESSEE DID NOT CARRY OUT ANY BUSINESS ACTIVITY, MANNER OF DEPLOYMENT OF FUNDS, INCLUDING CLAUSE-68 OF MOU, ETC. ON APPEAL, THE LD . COMMISSIONER OF INCOME TAX (APPEALS) GRANTED RELIEF TO THE ASSESSEE WHICH IS UNDER CHALLENGE BEFORE THIS TRIBU NAL. IF THE OBSERVATION MADE IN THE ASSESSMENT ORDER, LEADING T O ADDITION MADE TO THE TOTAL INCOME, CONCLUSION DRAWN IN THE IMPUGNED ORDER, MATERIAL AVAILABLE ON RECORD, ASSER TIONS MADE BY THE LD. RESPECTIVE COUNSEL, IF KEPT IN JUXT APOSITION AND ANALYZED, I FIND THAT THE LD. COMMISSIONER OF I NCOME TAX (APPEALS) WHILE COMING TO A PARTICULAR CONCLUSION H AS DULY CONSIDERED CLAUSE-21 AND 68 OF THE MOU WHICH HAVE B EEN REPRODUCED AT PAGE 4 ONWARDS OF THE IMPUGNED ORDER AND ALSO CONSIDERED THE DECISION FROM HONBLE APEX COUR T IN A LAKSHMANASWAMI MUDALIAR VS LIFE INSURANCE CORPORATI N OF INDIA AIR 1963 SC 1185. I AM IN AGREEMENT WITH THE FINDING OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) THA T THE ASSESSING OFFICER IS NOT RIGHT IN DISALLOWING LOSSE S IN FUTURE AND OPTIONS TRANSACTIONS AND LOSSES IN TRADING OF SHARES MORE SPECIFICALLY WHEN THE ASSESSING OFFICER ACCEPT ED THE INCOME SHOWN ON ACCOUNT OF SPECULATION BUSINESS IN SHARES AMOUNTING TO RS.3,73,829/-, DIVIDEND INCOME RECEIVE D ON TRADING OF SHARES OF RS.2,11,840/- AND RS.25,520/- ON GAINS ON FUTURE AND OPTIONS. ALL THE ADDITIONS MADE BY THE ASSESSING OFFICER WITHOUT PROVIDING THE OPPORTUNITY TO THE ASSESSEE TO EXPLAIN ITS CASE AND EVEN DID NOT CONSI DER THE ITA NO.1890/MUM/2014 M/S TRIFORCE INFRASTRUCTURE (I) PVT. LTD 4 FACTS IN A REQUIRED MANNER, THUS, I FIND NO INFIRM ITY IN THE CONCLUSION DRAWN BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS). IT IS AFFIRMED. FINALLY THE APPEAL OF THE REVENUE IS DISMISSED. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN T HE PRESENCE OF LEARNED REPRESENTATIVE FROM BOTH SIDES AT THE CONCLUSION OF THE HEARING ON 11 TH JUNE 2015. SD/- (JOGINDER SINGH) !' / JUDICIAL MEMBER MUMBAI; DATED : 12/06/2015 F{X~{T? P.S / ! &$)!*+,&+-* / COPY OF THE ORDER FORWARDED TO : 1. '#$%& / THE APPELLANT 2. '(%& / THE RESPONDENT. 3. ) ) * ( '#$ ) / THE CIT, MUMBAI. 4. ) ) * / CIT(A)- , MUMBAI 5. -./ ' , ) '#$ ' 1 , / DR, ITAT, MUMBAI 6. /2 3$ / GUARD FILE. & / BY ORDER, (-# ' //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI