DCIT 1(2)2, MUMBAI V. MSPL LTD, MUMBAI

ITA 2351/MUM/2017

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 6504 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 10 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: I
• Assessment Year: 2001-2002
• Appeal Filed On: 03-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D G PANSARI
• Keywords: Tax effect
• Section: 80HHC; 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES D , MUMBAI BEFORE S HRI RAJESH KUMAR (AM) AND SHRI RAM LAL NEGI (JM) ITA NO. 2351 /MUM/2017 ASSESSMENT Y EAR: 2001 - 2002 THE D.C.I.T. 1(2 )(2), R. NO. 535 , 5 TH FLOOR, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI - 400020 VS. M/S MSPL LTD., NO. 117, BALDOTA BHAWAN, M.K. ROAD, CHURCHGATE, MUMBAI - 400020 PAN: AABCM1040N (APPELLANT) (RESPONDENT) REVENUE BY : SHRI D.G. PANSARI (DR) ASSESSEE BY : SHRI VIJAY MEHTA ( A R ) DATE OF HEARING: 14/02 /201 9 DATE OF PRONOUNCEMENT: 19 / 02 /201 9 O R D E R PER RAM LAL NEGI, JM THIS APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE ORDER DATED 28.12.2016 PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS) - 2 (FOR SHORT THE CIT(A) , MUMBAI, FOR THE ASSESSMENT YEAR 2001 - 02 , WHEREBY THE LD. CIT(A) HAS PARTLY ALLOWED T HE APPEAL FILED BY THE ASSESSEE AGAINST THE ASSESSMENT ORDER PASSED U/S 143 (3) R.W.S 254 OF THE INCOME TAX ACT, 1961 (FOR SHORT THE ACT). 2 . AGGRIE VED BY THE ORDER OF LD. CIT (APPEAL S ), THE REVENUE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL ON THE FOLLOWING EFFECTIVE GROUNDS : - 1. THE LD. CIT (A) IS CORRECT IN DIRECTING THE A.O. TO ALLOW THE DEDUCTION U/S 80HHC AT RS. 10,48,23,846/ - AS AGAINST RS. 1 0,09,59,113/ - ALLOWED BY THE A.O., RELYING ON THE DECISION IN THE CASE OF ASIAN STAR CO. LTD. (326 ITR 56), WITHOUT APPRECIATING THAT IN THE SAID CASE THE 2 ITA NO. 2351 / MUM/2017 ASSESSMENT YEAR: 2001 - 02 ISSUE HAS BEEN DECIDED IN FAVOUR OF THE REVENUE WHEREIN IT HAS BEEN HELD THAT GROSS INTEREST AND NOT NET INTEREST RECEIVED BY THE ASSESSEE SHOULD CONSIDERED FOR PURPOSE OF WORKING OUT DEDUCTION U/S 80HHC? 2. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT (A) ERRED IN DIRECTING THE A.O. TO ALLOW THE NETTING OF INCOME AMOUNT ING TO RS. 61,05,608/ - RELATING TO TRANSPORTATION RECEIPTS, DISPATCH MONEY AND ACCIDENTAL CLAIM, RELYING UPON THE DECISION OF HONBLE SUPREME COURT IN THE CASE OF K. RAVINDRANATHAN NAIR 293 ITR 228 (SC), WITHOUT APPRECIATING THAT THE SAID DECISION IS IN FA VOUR OF REVENUE AND IT HAS BEEN HELD IN THE SAID CASE THAT SUCH RECEIPTS WERE INCLUDIBLE IN TOTAL TURNOVER FOR COMPUTING DEDUCTION U/S 80HHC? 3 . AT THE OUTSET, THE LD. COUNSEL FOR THE RESPONDENT/ASSESSEE POINTED OUT THAT THE TAX EFFECT OF THE RELIEF GRA NTED BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS) IS BELOW RS.20 LACS AND AS PER THE CBDT CIRCULAR NO. 3/2018, F. NO. 279/MISC.142/2007 - ITJ (PT) DATED 11 TH JULY, 2018 ISSUED BY CENTRAL BOARD OF DIRECT TAXES, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, G OVERNMENT OF INDIA LIMIT FIXED BY THE CBDT FOR FILING THE APPEAL BEFORE THE ITAT IS 20 LACS . 4 . THE LD. DEPARTMENTAL REPRESENTATIVE (DR) FAIRLY CONCEDED THAT TH IS APPEAL IS NOT MAINTAINABLE IN LIGHT OF THE ABOVE SAID CBDT CIRCULAR. THE LD. DR ALSO DID NOT POINT OUT THAT TH IS APPEAL FALL S IN ANY OF THE EXCEPTIONS CARVED OUT IN THE ABOVE SAID CIRCULAR. 5 . WE HAVE GONE THROUGH THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) AND THE GROUNDS OF APPEALS. WE FIND THAT THE TAX EFFEC T IN THE ABOVE REFER RED APPEAL IS LESS THAN RS. 20 LACS. ACCORDINGLY, W E DISMISS THE AFORESAID APPEAL FILED BY THE REVENUE. 3 ITA NO. 2351 / MUM/2017 ASSESSMENT YEAR: 2001 - 02 IN THE RESULT, APPEAL FILED BY THE REVENUE FOR ASSESSMENT YEAR 2001 - 2002 IS DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON 19 TH FEBRUARY , 2019 . SD/ - SD/ - ( RAJESH KUMAR ) ( RAM LAL NEGI ) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI ; DATED: 19 / 02 / 201 9 ALINDRA, PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE C IT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . / BY ORDER, //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI