AI Insights
This case involves cross appeals by M/s. Varun Global Ltd and the Deputy Commissioner of Income Tax concerning the assessment year 2010-11. The appeals arose from the order by the Commissioner of Income Tax (Appeals)-10, Mumbai, which was against the assessment order passed by the Deputy Commissioner of Income Tax. The primary legal issue revolved around the disallowance of expenses under section 14A of the Income Tax Act, 1961, in the context of income offered on a presumptive basis under the tonnage tax scheme. The tribunal dismissed the assessee's appeal due to the company's liquidation and lack of representation, and upheld the CIT(A)'s decision on the Revenue's appeal, referencing a similar case from A.Y. 2008-09.
Appeal details
Counselvise Citation
[2023] 140 COUNSELVISE.COM (IT) 302503 (ITAT-MUMBAI)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
6 year(s) 9 month(s) 4 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
30-01-2023
Appeal Filed By
Assessee
Order Result
Dismissed
Bench Allotted
J
Next Hearing Date
11-01-2023
Assessment Year
2010-2011
Appeal Filed On
25-04-2016
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL, ‘J‘ BENCH MUMBAI BEFORE: SHRI AMIT SHUKLA, JUDICIAL MEMBER & SHRI M.BALAGANESH, ACCOUNTANT MEMBER ITA No.3040/Mum/2016 (Asse ssment Year :2010-11) M/s. Varun Global Ltd (Successor to Varun Shipping Company Limited) Laxmi Building 6, Shoorji Vallabhdas Marg Ballard Estate Mumbai- 400 001 Vs. Dy. Commissioner of Income Tax-5(3) Aayakar Bhavan Mumbai – 400 020 PAN/GIR No.AAACV1658C (Appellant) .. (Respondent) ITA No.3205/Mum/2016 (Asse ssment Year :2010-11) The Dy.Official Liquidator Govt. of India, Ministry of Corporate Affairs, O/o. the Official Liquidator High Court of Bombat 5 th Floor, Bank of India Building Mahatma Gandhi Road Fort, Mumbai - 400023 Vs. M/s. Varun Global Ltd (Successor to Varun Shipping Company Limited) Laxmi Building 6, Shoorji Vallabhdas Marg Ballard Estate Mumbai- 400 001 PAN/GIR No.AAACV1658C (Appellant) .. (Respondent) Assessee by None Revenue by Shri Manoj Kumar Date of Hearing 12/01/2023 Date of Pronouncement 31/01/2023 ITA No.3040/Mum/2016 & 3205/Mum/2016 M/s. Varun Global Ltd. (Successor to M/s. Varun Shipping Company Ltd. 2 आदेश / O R D E R PER M. BALAGANESH (A.M): These are cross appeals in ITA No. 3040/Mum/2016 & 3205/Mum/2016 for A.Y.2010-11 arises out of the order by the ld. Commissioner of Income Tax (Appeals)-10, Mumbai in appeal No.CIT(A)- 10/DCIT-5(3)/165/2014-15 dated 29/01/2016 (ld. CIT(A) in short) against the order of assessment passed u/s.143(3) r.w.s. 144C(3) of the Income Tax Act, 1961 (hereinafter referred to as Act) dated 03/04/2014 by the ld. Dy. Commissioner of Income Tax, Circle-5(3), Mumbai (hereinafter referred to as ld. AO). 2. None appeared on behalf of the assessee. On perusal of the earlier order sheet notings we find that on 17/11/2022 Shri Suresh Kumar, Sr. Assistant from office of Official Liquidator appeared before the Bench and informed that assessee company M/s. Varun Global Ltd. (M/s. Varun Shipping Company Ltd. is merged with M/s. Varun Global Ltd.) is under liquidation. We find that the revenue had filed Revised Form No. 36 duly impleading the Official Liquidator on record. Infact the revenue had also duly served the notice of hearing on the Official Liquidator through the ld. AO. But we find that the Official Liquidator had not impleaded himself to represent the assessee company in the appeal filed by the assessee by filing Revised Form No. 36. Since the company is under liquidation and Official Liquidator did not ensure the presence before this Bench at the time of hearing on 12/01/2023, we deem it fit to dismiss the appeal of the assessee as not maintainable in the present format. We find that no further evidences had been submitted by the Official Liquidator on behalf of the assessee company to controvert the findings given by the ld. ITA No.3040/Mum/2016 & 3205/Mum/2016 M/s. Varun Global Ltd. (Successor to M/s. Varun Shipping Company Ltd. 3 CIT(A). With regard to revenue’s appeal, it is clear that once an income is offered on presumptive basis under tonnage tax scheme, there cannot be any disallowance of expenses u/s 14A of the Act. In fact this issue has been decided in favour of the assessee by this tribunal in assessee’s own case for the A.Y. 2008-09 which has been taken note of by the ld. CIT(A) while granting relief to the assessee, both under normal provisions of the Act as well as in the computation of book profits u/s 115JB of the Act. In view of this, we do not deem it fit to interfere in the order passed by the ld. CIT(A). Accordingly, the appeal of the assessee is dismissed and appeal of the Revenue is dismissed. 3. In the result, appeal of assessee is dismissed and appeal of the Revenue is dismissed. Order pronounced on 31/01/2023 by way of proper mentioning in the notice board. Sd/- (AMIT SHUKLA) Sd/- (M.BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai; Dated 31/01/2023 KARUNA, sr.ps ITA No.3040/Mum/2016 & 3205/Mum/2016 M/s. Varun Global Ltd. (Successor to M/s. Varun Shipping Company Ltd. 4 Copy of the Order forwarded to : BY ORDER, (Asstt. Registrar) ITAT, Mumbai 1. The Appellant 2. The Respondent. 3. The CIT(A), Mumbai. 4. CIT 5. DR, ITAT, Mumbai 6. Guard file. //True Copy//
