ACIT 17 (3), MUMBAI V. WESTERN INDIA MARINE CORPORATION, MUMBAI

ITA 2192/MUM/2012

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 71342 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-09-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 17-09-2013
• Assessment Year: 2006-2007
• Appeal Filed On: 02-04-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PHEROZE A DHANBHOORA
• Assessee Lawyers: C P PATHAK
• Section: 260A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH G , MUMBAI BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER AND DR. S.T.M. PAVALAN, JUDICIAL MEMBER ITA NO. 2192/MUM/2012 ASSESSMENT YEAR : 2006-07 DCIT-17(3), ROOM NO. 614, 6 TH FLOOR, PIRAMAL CHAMBERS, PAREL, MUMBAI-12 VS. M/S. WESTERN INDIA MARINE CORPORATION 11, GANPAT BAUG, OFF. T.J. RD. SEWREE, MUMBAI-15 PAN: AAAFW 0148 H (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI NISHANT THAKKAR & PHEROZE A DHANBHOORA RESPONDENT BY : SHRI C.P. PATHAK DATE OF HEARING : 17.09.2013 DATE OF PRONOUNCEMENT : 30.09.2013 O R D E R PER DR. S.T.M. PAVALAN, JM: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAIN ST THE ORDER OF THE LD.CIT(A) -19, MUMBAI DATED 06.01.2012 FOR THE ASSESSMENT YEAR 20 06-07. 2. IN THIS APPEAL, THE REVENUE HAS RAISED THE FOLLO WING GROUNDS: 1. ON THE FACT AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD.CIT(A) HAS ERRED IN RESTRICTING DISALLOWANCE TO 25 % OF ADDITI ONAL LABOUR EXPENSES OF RS.13,93,403/- PAID BY ASSESSEE TO DOCK LABOURERS. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E IN LAW, THE LD.CIT(A) HAS ERRED IN ALLOWING THE APPEAL OF THE ASSESSEE RELYING ON T HE DECISION OF ITAT IN ASSESSEES OWN CASE WHEREIN THE ITAT HAS GIVEN RELIEF OF 75% O F THE ADDITION FOR RS.13,93,403/- MADE ON ACCOUNT OF ILLEGAL CASH PAYM ENT WHICH IS SUBJECT MATTER OF REVENUE FURTHER APPEAL U/S 260A OF THE I.T. ACT. 19 61. 3. THE APPELLANT PRAYS THAT THE ORDER OF THE CIT(A) BEING ERRONEOUS IN FACTS AND IN LAW BE REVERSED AND THAT OF THE ASSESSING OFFICER B E RESTORED. ITA NO. 2192/MUM/2012 M/S. WESTERN INDIA MARINE CORPORATION ASSESSMENT YEAR : 2006-07 2 3. HAVING HEARD BOTH THE SIDES AND PERUSED THE MATE RIAL ON RECORD, IT IS NOTED THAT THE PRESENT APPEAL IS FILED TIME BARRED BY 9 DAYS A ND WE PROCEED TO DECIDE THE ISSUE AFTER CONDONING THE SAID DELAY. DURING THE COURSE OF THE PROCEEDINGS, IT HAS BEEN BROUGHT TO OUR NOTICE THAT ON THE ISSUE OF DISALLOWANCE OF THE AMOUNT PAID TO THE DOCK LABOURERS AS ADDITIONAL COMPENSATION BY WAY SPECIAL ALLOWANCE, T HE ITAT HAS DECIDED A SIMILAR ISSUE IN FAVOUR OF THE ASSESSEE IN ITS OWN CASE IN ITA NO. 6 95 & 685/MUM/2009 AND 2814, 3742, 3743/MUM/2008 FOR THE A.YS. 2000-01 TO 2005-06. IN THE SAID DECISIONS, THE ITAT HAS RESTRICTED THE ADHOC DISALLOWANCE TO 25% AND THE LD .CIT(A) HAS RIGHTLY RELIED ON THE SAID ORDERS OF THE ITAT FOR RESTRICTING A SIMILAR DISALL OWANCE TO 25%. THE CONTENTION OF THE REVENUE THAT AN APPEAL HAS BEEN PREFERRED BEFORE TH E HIGH COURT U/S 260A AGAINST THE SAID ORDERS OF THE ITAT CANNOT BE THE BASIS ON WHIC H A DIFFERENT VIEW CAN BE TAKEN FOR THE YEAR UNDER CONSIDERATION IN THE ABSENCE OF ANY ORDE R OF THE HIGH COURT IN THE SAID APPEAL. IN VIEW OF THAT MATTER, WE DO NOT FIND ANY INFIRMIT Y IN THE DECISION OF THE LD.CIT(A) ON THIS COUNT AND THE SAME IS UPHELD. 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 30 TH DAY OF SEPTEMBER, 2013. SD/- SD/- (P.M. JAGTAP) (DR. S.T.M. PAVALAN) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 30.09.2013. *SRIVASTAVA COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT(A) CONCERNED, MUMBAI THE DR G BENCH //TRUE COPY// BY ORDER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.