Appeal details
Counselvise Citation
[2013] 120 COUNSELVISE.COM (IT) 1684 (ITAT-MUMBAI)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
1 year(s) 1 month(s) 21 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
01-03-2013
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
H
Next Hearing Date
18-02-2013
Assessment Year
2007-2008
Appeal Filed On
11-01-2012
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL H , BENCH, MUMBAI , BEFORE SHRI R.K.GUPTA, JM & SHRI N.K.BILLAIYA , AM ITA N O. 27 9 / MUM/ 20 1 2 ( ASSESSMENT YEAR : 200 7 - 20 0 8 ) HDFC BANK LTD. (SUCESSOR TO BUSINESS OF CENTURION BANK OF PUNJAB LTD.), SENAPATI BAPAT MARG, LOWER PAREL, MUMBAI - 400 013. VS. ACIT 2(3) , MUMBAI - 400 020 PAN/GIR NO. : A AACH 2702 H ( APPELLANT ) .. ( RESPONDENT ) /ASSESSEE BY : MR. YOGESH A. THAR /REVENUE BY : MR. K.C.P.PATNAIK DATE OF HEARING : 18 TH FEB . , 201 3 DATE OF PRONOUNCEMENT : 01/03/ 2 01 3 O R D E R PER SHRI R.K.GUPTA, JM : THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 1 - 11 - 2011 OF LEANED CIT - 2 , MUMBAI RELA TING TO THE ASSESSMENT YEAR 200 7 - 08 . 2 . THE ASSESSEE IS OB JECTING THE INACTION ON THE PART OF THE LEARNED CIT IN REGARD TO INVOKING THE PROVISION OF SECTION 263 OF THE ACT AND WITHOUT PREJUDICE THE ASSESSEE IS OBJECTING THAT THE LEARNED CIT WAS ERRED IN DIRECTING THE AO TO DISALLOW A SUM OF RS. 17,88,96,969/ - ON ACCOUNT OF EXPENSES INCURRED UNDER THE EMPLOYEES STOCK OPTION PLAN (IN SHORT ESOP) . ITA NO .279 /201 2 2 3 . LEARNED COUNSEL OF THE ASSESSEE AT THE VERY OUTSET STATED THAT THIS ISSUE IS COVERED BY THE ORDER OF THE TRIBUNAL IN THE CASE OF ASSESSEE ITSELF FOR IMMEDIATELY PRECE DING YEAR I.E. ASSESSMENT YEAR 2006 - 07 DECIDED IN ITA NO. 3761/M/2011, VIDE ORDER DATED 31 - 10 - 2012 . COPY OF THE ORDER WAS ALSO FILED. 4 . ON THE OTHER HAND, LEARNED DR FAIRLY STATED THAT SIMILAR ISSUE WAS INVOLVED IN EARLIER YEAR, HOWEVER, HE PLACED RELIA NCE ON THE ORDER OF THE CI T, WHO PASSED THE ORDER UNDER SECTION 263. 5 . AFTER CONSIDERING THE SUBMISSION AND PERUSING THE MATERIAL ON RECORD, WE FIND THAT ON SIMILAR CIRCUMSTANCES, THE PROCEEDING S UNDER SECTION 263 OF THE ACT WERE INITIATED FOR IMMEDIATEL Y PRECEDING YEAR AND THE AO WAS DIRECTED TO DISALLOW THE EXPENSES CLAIMED UNDER THE HEAD ESOP. THE ASSESSEE PREFERRED APPEAL BEFORE THE TRIBUNAL AND THE TRIBUNAL WHILE DECIDING THE APPEAL IN ITA NO. 3761/M/2011, VIDE ORDER DATED 31 - 10 - 2012 , HELD THAT THE INITIATION PROCEEDING UNDER SECTION 263 WAS NOT CORRECT. WHILE HOLDING SO, RELIANCE WAS PLACED IN THE CASE OF SSI LTD. VS. DCIT, REPORTED IN 85 TTJ 1049 , WHICH HAS BEEN UPHELD BY THE HON BLE MADRAS HIGH COURT. IN THIS CASE ALSO THE PROCEEDING UNDER SECTION 263 WAS INITIATED AND THE AO WAS DIRECTED TO DISALLOW THE EXPENSES SHOWN UNDER THE HEAD ESOP . SIMILAR ISSUE IS INVOLVED FOR THE YEAR UNDER CONSIDERATION. THEREFORE, IN VIEW OF THE DECISION OF THE TRIBUNAL FOR EARLIER YEAR, WE HOLD THAT INITIATION OF ITA NO .279 /201 2 3 PRO CEEDING UNDER SECTION 263 WAS NOT CORRECT. ACCORDINGLY, WE CANCEL THE ORDER PASSED UNDER SECTION 263. 6 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 1 ST DAY OF M AR . 2013 . SD/ - ( ) ( N.K.BILLAIYA ) SD/ - ( ) ( R.K.GUPTA ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER MUMBAI ; DATED : 0 1 / 0 3 /2013 . /PKM , PS COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / THE CIT(A) , MUMBAI. 4. / CIT 5. / DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY// / BY ORDER, ( ASSTT. REGISTRAR) / ITAT, MUMBAI
