DCIT CEN CIR 13, MUMBAI V. A.B. CORPN LTD, MUMBAI

ITA 2840/MUM/2013

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 7128 (ITAT-MUMBAI)
• Duration Of Justice: 5 year(s) 1 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 13-09-2016
• Assessment Year: 2005-2006
• Appeal Filed On: 12-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R P MEENA
• Keywords: Revenue expenditure; Capital expenditure
• Section: 143(3); 115JB; 147

Judgement Text

IN THE INCOME-TAX APPELLATE TRIBUNAL A BENCH MUMB AI BEFORE SHRI G.S. PANNU, ACCOUNTANT MEMBER AND SHRI PAWAN SINGH, JUDICIAL MEMBER ITA NO.2840/MUM/2013 (ASSESSMENT YEAR 200 5-06 ) ACIT CENTRAL CIRCLE-13, ROOM NO. 1103, 11 TH FLOOR, OLD CGO BUILDING, (ANNEX), M.K. ROAD, MUMBAI-20. VS. M/S A B CORPORATION LTD. JANAK, 13 TH NORTH SOUTH ROAD, JVPD SCHEME, JUHU, MUMBAI-400049. PAN: AAACA5553D APPELLANT RESPONDENT APPELLANT BY : SHRI R.P. MEENA (CIT-DR) RESPONDENT BY : SHRI BHUPENDRA KARKHANIS (AR) DATE OF HEARING : 02.05.2018 DATE OF PRONOUNCEMEN T : 31.05.2018 ORDER PER PAWAN SINGH, JUDICIAL MEMBER; 1. THE APPEAL BY REVENUE UNDER SECTION 253 OF THE INCO ME-TAX ACT (THE ACT) IS DIRECTED AGAINST THE ORDER OF LD. COMMISSIONER O F INCOME-TAX (APPEALS)- 37 [LD. CIT(A)], MUMBAI DATED 15.01.2013 FOR ASSESS MENT YEAR 2005-06. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APP EAL: (I) ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LEARNED CIT(A) ERRED IN DELETING THE DISALLOWANCE OF EXPENDITURE O F RS. 30 CRORES BEING PAYMENT MADE FOR ACQUIRING BRAND WHICH WAS OF CAPIT AL NATURE AND NOT ALLOWABLE AS PER PROVISIONS OF THE I T ACT, 1961. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE FILED HIS RETURN OF INCOME FOR RELEVANT ASSESSMENT YEAR ON 31.10.2005 DECLARING TO TAL INCOME OF RS. 28,97,942/- AND BOOK PROFIT UNDER SECTION 115JB OF RS. 41,30,80,820/- WHICH WAS ACCEPTED IN ASSESSMENT ORDER DATED 26.12. 2007 PASSED UNDER SECTION 143(3) OF THE ACT. THE ASSESSMENT WAS REOPE NED UNDER SECTION 147 ITA NO.2840/M/13- M/S A B CORPORATION LTD. 2 ON 18.03.2009. THE ASSESSMENT WAS COMPLETED UNDER S ECTION 143(3) R.W.S. 147 ON 30.12.2009. THE ASSESSING OFFICER WHILE PASS ING THE RE-ASSESSMENT ORDER DISALLOWED RS. 30 CRORE BY TREATING THE SAME AS CAPITAL EXPENDITURE. ON APPEAL BEFORE THE LD. CIT(A), THE SAME WAS ALLOW ED AS REVENUE EXPENDITURE, ON THE BASIS OF DECISION OF TRIBUNAL F OR A.Y. 1995-96 VIDE ORDER DATED 05.06.2006 IN ITA NO. 4452/MUM/2000. TH US, FURTHER AGGRIEVED BY THE ORDER OF LD. CIT(A), THE REVENUE H AS FILED THE PRESENT APPEAL BEFORE US. 3. AT THE OUTSET OF HEARING, THE LD. AUTHORIZED REPRES ENTATIVE (AR) OF THE ASSESSEE SUBMITS THAT THE GROUND OF APPEAL RAISED B Y REVENUE IS COVERED IN FAVOUR OF ASSESSEE IN CASE FOR A.Y. 1995-96 IN ITA NO. 4452/MUM/2000 DATED 05.06.2006. ON THE OTHER HAND, THE LD. DEPART MENTAL REPRESENTATIVE (DR) FOR THE REVENUE SUBMITS THAT THE DEPARTMENT HA S ALREADY FILED APPEAL AGAINST THE SAID ORDER BEFORE THE HONBLE BOMBAY HI GH COURT. THEREFORE, THE LD. DR FOR THE REVENUE SUPPORTED THE ORDER OF A SSESSING OFFICER. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSION OF THE PART IES AND HAVE GONE THROUGH THE ORDERS OF AUTHORITIES BELOW AND THE ORD ER PASSED BY CO- ORDINATE BENCH OF TRIBUNAL FOR A.Y. 2005-06. WE HAV E NOTED THAT THE IDENTICAL GROUNDS OF APPEAL WAS RAISED IN APPEAL FO R A.Y. 1995-96 AND THE TRIBUNAL VIDE ORDER DATED 05.06.2006 ALLOWED THE SI MILAR GROUND OF APPEAL IN FAVOUR OF ASSESSEE. THE LD. CIT(A) ALLOWED THE R ELIEF TO THE ASSESSEE ON THE BASIS OF ORDER OF TRIBUNAL. THUS, RESPECTFULLY FOLLOWING THE DECISION OF ITA NO.2840/M/13- M/S A B CORPORATION LTD. 3 TRIBUNAL, COPY OF WHICH IS PLACED ON RECORD. THEREF ORE, WE DO NOT FIND ANY MERIT IN THE GROUNDS OF APPEAL RAISED BY REVENUE. T HUS, CONSIDERING THE DECISION OF TRIBUNAL, WE FIND THAT GROUND OF APPEAL RAISED BY REVENUE IS COVERED IN FAVOUR OF ASSESSEE AND THE SAME IS DISMI SSED. 5. IN THE RESULT, APPEAL FILED BY REVENUE IS DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON 31.05.2018. SD/- SD/- G.S. PANNU PAWAN SINGH ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATE: 31.05.2018 SK COPY OF THE ORDER FORWARDED TO : 1. ASSESSEE 2. RESPONDENT 3. THE CONCERNED CIT(A) 4. THE CONCERNED CIT 5. DR A BENCH, ITAT, MUMBAI 6. GUARD FILE BY ORDER, DY./ASST. REGISTRAR ITAT, MUMBAI