DCIT 4(1), MUMBAI V. ENAM SECURITIES P. LTD, MUMBAI

ITA 2809/MUM/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 48968 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-05-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: J
• Next Hearing Date: 18-05-2011
• Assessment Year: 2003-2004
• Appeal Filed On: 09-04-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K SINGH
• Assessee Lawyers: RAJNIKANT V CHANIYARI
• Keywords: Reopening of assessment; Difference of opinion; Change of opinion
• Section: 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL J BENCH, MUMBAI BEFORE SHRI N.V. VASUDEVAN, JUDICIAL MEMBER AND SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER ITA NO. 2809/MUM./2010 (ASSESSMENT YEAR : 2003-04 ) DATE OF HEARING: 18.5.2011 DY. COMMISSIONER OF INCOME TAX RANGE-4(1), AAYAKAR BHAVAN 101, M.K. ROAD, MUMBAI 400 020 .. APPELLANT V/S M/S. ENAM SECURITIES PVT. LTD. 24-BD, RAJA BAHADUR COMPOUND AMBALAL DOSHI MARG, FORT MUMBAI 400 023 PAN AAACE5146N .... RESPONDENT REVENUE BY : MR. S.K. SINGH ASSESSEE BY : MR. RAJNIKANT V. CHANIYARI O R D E R PER J. SUDHAKAR REDDY, A.M. THIS APPEAL PREFERRED BY THE REVENUE, IS DIRECTED A GAINST THE IMPUGNED ORDER DATED 7 TH JANUARY 2010, PASSED BY THE COMMISSIONER (APPEALS)-VIII, MUMBAI, FOR ASSESSMENT YEAR 2003-04 . 2. AFTER HEARING THE RIVAL CONTENTIONS, WE FIND THA T THE COMMISSIONER (APPEALS), AT PARA-2.2 OF HIS ORDER, HELD AS FOLLOW S:- 2.2 I HAVE GONE THROUGH THE ORDER OF THE A.O. AND SUB MISSION OF APPELLANT. IT IS SEEN THAT IN COURSE OF ORIGINAL ASSESSMENT PROCEEDINGS, THE A.O. HAS EXAMINED THE CLAIM OF DED UCTION M/S. ENAM SECURITIES PVT. LTD. ITA NO. 2809/MUM./2010 2 UNDER SECTION 80M IN DETAIL AND AFTER DETAILED DISC USSION FROM PARA-6.1 TO 6.6, PAGES-5 TO 7, THE A.O. AFTER DISAL LOWING ` 7,92,000 BEING 5% OF AMOUNT OF ` 1,50,48,400 OF DIVIDEND DISTRIBUTED BY THE APPELLANT, ALLOWED THE CLAIM OF DEDUCTION U/S 80M OF ` 1,50,48,000. THE REOPENING OF ASSESSMENT ON THE IS SUE OF WITHDRAWAL OF THE DEDUCTION U/S 80M IS, THEREFOR E, A CASE OF CHANGE OF OPINION AND THE REOPENING OF ASSESSMENT I S, THEREFORE, FOUND TO BE NOT VALID. FURTHER, ON MERIT ALSO, IT I S FOUND THAT THE DEDUCTION U/S 80M IS ALLOWABLE TO THE APPELLANT WHI CH HAS BEEN CLARIFIED BY THE ITAT IN CASE OF M/S. CASTLE INVEST MENT & INDUSTRIES PVT. LTD. V/S ITO FOR A.Y. 2003-04 AND T HE DEPARTMENTAL APPEAL TO HIGH COURT HAS BEEN DISMISS ED IN CASE OF CIT V/S M/S. CASTLE INVESTMENT & INDUSTRIES PVT. LTD. IN INCOME-TAX APPEAL NO.1557 OF 2007, VIDE ORDER OF BO MBAY HIGH COURT DATED 22 ND JULY 2008. GROUND NOS.1 AND 2 ARE, THEREFORE, ALLOWED. 3. BEFORE US, LEARNED COUNSEL, MR. RAJNIKANT V. CHANIY ARI, APPEARING ON BEHALF OF THE ASSESSEE, FILED A COPY OF THE DECISIO N OF A CO-ORDINATE BENCH OF THIS TRIBUNAL RENDERED ON THE VARY SAME ISSUE AS WE LL AS A COPY OF THE JUDGMENT OF HON'BLE BOMBAY HIGH COURT RENDERED IN C IT V/S CASTLE INVESTMENT & INDUSTRIES PVT. LTD. , INCOME TAX APPEAL NO.1157/2007, ORDER DATED 22 ND JULY 2008. ON GOING THROUGH THE SAME, WE FIND NO I NFIRMITY IN THE ORDER OF THE FIRST APPELLATE AUTHORITY AS HE HAS FO LLOWED THE JUDGMENT OF JURISDICTIONAL HIGH COURT IN THE MATTER. CONSEQUENT LY, WE UPHOLD THE ORDER OF THE FIRST APPELLATE AUTHORITY AND DISMISS THE GROUN D RAISED BY THE REVENUE. 4. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 27 TH MAY 2011 SD/- N.V. VASUDEVAN JUDICIAL MEMBER SD/- J. SUDHAKAR REDDY ACCOUNTANT MEMBER MUMBAI, DATED: 27 TH MAY 2011 M/S. ENAM SECURITIES PVT. LTD. ITA NO. 2809/MUM./2010 3 COPY TO : (1) THE ASSESSEE (2) THE RESPONDENT (3) THE CIT(A), MUMBAI, CONCERNED (4) THE CIT, MUMBAI CITY CONCERNED (5) THE DR, J BENCH, ITAT, MUMBAI TRUE COPY BY ORDER PRADEEP J. CHOWDHURY ASSISTANT REGISTRAR SR. PRIVATE SECRETARY ITAT, MUMBAI BENCHES, MUMBAI DATE INITIAL 1. DRAFT DICTATED ON 24.5.2011 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 24.5.2011 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 24.5.2011 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 24.5.2011 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 24.5.2011 SR.PS/PS 6. DATE OF PRONOUNCEMENT 27.5.2011 SR.PS 7. FILE SENT TO THE BENCH CLERK 27.5.2011 SR.PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER