ITO 14(3)(3), MUMBAI V. SATELLITE CABLE TV CABLE NETWORK P.LTD, MUMBAI

ITA 2714/MUM/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 2805 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 08-05-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: K KOTRESH
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC, MUMBAI BEFORE SHRI G.S.PANNU, ACCOUNTANT MEMBER ITA NO. 2714/MUM/2015 (ASSESSMENT YEAR : 2008-09) THE ITO -14(3)(3), MUMBAI. ... APP ELLANT VS. M/S. SATELLITE CABLE TV NETWORK P. LTD. 1/156, GORODIA SHOPPING CENTRE, GARODIA NAGAR, GHATKOPAR(E), MUMBAI -77 PAN:AAKCS 0785R .... RESPONDENT APPELLANT BY : SHRI SANTOSH MANKOSKAR RESPONDENT BY : SHRI K. KOTRESH DATE OF HEARING : 30/06/2016 DATE OF PRONOUNCEMENT : 30/06/2016 ORDER THE CAPTIONED APPEAL FILED BY THE REVENUE PERTA INING TO ASSESSMENT YEAR 2008-09 IS DIRECTED AGAINST AN OR DER PASSED BY CIT(A)-22, MUMBAI DATED 04/02/2015, WHICH IN TURN A RISES OUT OF AN ORDER PASSED BY THE ASSESSING OFFICER UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) DATED 01 /03/2013. 2. IN THIS APPEAL, THE ONLY ISSUE IS WITH REGARD T O THE ACTION OF THE ASSESSING OFFICER IN TREATING AN AMOUNT RECEIVED BY THE ASSESSEE OF RS.43,17,729/- FROM M/S. WIRE & WIRELESS NETWORK PV T. LTD. AS DEEMED 2 ITA NO. 2714/MUM/2015 (ASSESSMENT YEAR : 2008-09) DIVIDEND WITHIN THE MEANING OF SECTION 2(22)(E) OF THE ACT. THE ASSESSING OFFICER NOTED THAT THE SHARE HOLDING PATT ERN IN THE ASSESSEE COMPANY AND M/S. WIRE & WIRELESS NETWORK PVT. LTD . REVEAL THAT THERE WAS SUBSTANTIAL COMMON SHAREHOLDING AND THUS, THE PROVISIONS OF SECTION 2(22)(E) OF THE ACT WERE ATTRACTED. THE CI T(A) HOWEVER, NOTICED THAT THE ASSESSEE COMPANY WAS NOT SHAREHOLDER IN M /S. WIRE & WIRELESS NETWORK PVT. LTD. FROM WHOM THE IMPUGNED S UM WAS RECEIVED. ACCORDING TO THE CIT(A), THE PROVISIONS OF SECTION 2(22)(E) WOULD BE ATTRACTED IN THE HANDS OF THE RESPECTIVE S HAREHOLDERS ONLY AND NOT THE ASSESSEE COMPANY AS IT IS NOT A SHARE H OLDER IN M/S. WIRE & WIRELESS NETWORK PVT. LTD. THE CIT(A) ACCORDINGLY, DIRECTED THE ASSESSING OFFICER TO DELETE THE ADDITION BY FOLLOW ING THE JUDGEMENT OF THE HON'BLE BOMBAY HIGH COURT IN THE CASE OF CIT V S. UNIVERSAL MEDICARE PVT. LTD. 324 ITR 263 (BOM). AGAINST SUCH A DECISION, REVENUE IS IN APPEAL BEFORE THE TRIBUNAL. 3. BEFORE ME, IT WAS A COMMON POINT BETWEEN THE PAR TIES THAT SIMILAR ISSUE HAD COME UP BEFORE THE TRIBUNAL IN TH E ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2009-10, WHEREIN VIDE ITS ORDER IN ITA NO.4007/MUM/2013 DATED 22/5/2015, SIMILAR ADDITION MADE BY THE ASSESSING OFFICER WAS DELETED FOLLOWING THE JUDGMEN T OF THE HON'BLE BOMBAY HIGH COURT IN THE CASE OF UNIVERSAL MEDICAR E LTD. (SUPRA). IT WAS ALSO A COMMON POINT BETWEEN THE PARTIES THAT TH E DECISION OF THE TRIBUNAL DATED 22/5/2015(SURPA) CONTINUES TO HOLD T HE FIELD AND THE FACT-SITUATION IN THE INSTANT YEAR IS IDENTICAL TO THAT CONSIDERED BY THE TRIBUNAL IN ASSESSMENT YEAR 2009-10. 3 ITA NO. 2714/MUM/2015 (ASSESSMENT YEAR : 2008-09) 4. IN VIEW OF THE AFORESAID FACTUAL MATRIX, I FIND NO REASON TO INTERFERE WITH THE DECISION OF THE CIT(A), WHICH IS IN TUNE WITH THE EARLIER PRECEDENT IN ASSESSEES OWN CASE AS WELL AS THE JUDGEMENT OF THE HON'BLE BOMBAY HIGH COURT IN THE CASE OF UNIVER SAL MEDICARE PVT. LTD.(SUPRA). THUS, APPEAL OF THE REVENUE IS DISMIS SED. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. THE ABOVE DECISION WAS PRONOUNCED IN THE OPEN COUR T AT THE CONCLUSION OF HEARING IN THE PRESENCE OF BOTH THE P ARTIES ON 30/06/2016. SD/- (G.S. PANNU) ACCOU NTANT MEMBER MUMBAI, DATED 30/06/2016 VM , SR. PS COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT , 2. THE RESPONDENT. 3. THE CIT(A)- 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI