ITO (E) 2(1), MUMBAI V. MORSIWALA MANZIL MUSAFIRKHANA, MUMBAI

ITA 3215/MUM/2017

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 9760 (ITAT-MUMBAI)
• Duration Of Justice: 4 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-09-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 03-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K BEPARI
• Keywords: Charitable institution
• Section: 12A; 11

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI BEFORE SHRI B.R. BASKARAN (AM) I.T.A. NO. 3215 /MUM/ 2017 (ASSESSMENT YEAR 20 1 2 - 13 ) ITO(E) - 2(1) ROOM NO. 512 5 TH FLOOR, PIRMAL CHAMBERS, LALBAUG MUMBAI - 400 012. VS. MORSIWALA MANZIL MUSAFIRKHANA J ANAMBHOOMI BHAVAN JANAMBHOOMI MARG MUMBAI - 400 001. PAN : AAATM6515E ( APPELLANT ) ( RESPONDENT ) ASSESSEE BY NONE DEPARTMENT BY SHRI S.K. BEPARI DATE OF HEARING 1 4 .9. 201 7 DATE OF PRONOUNCEMENT 14 . 9 . 201 7 O R D E R THE APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 28 - 02 - 2017 PASSED BY LD CIT(A) - 1, MUMBAI AND IT RELATES TO THE ASSESSMENT YEAR 2012 - 13. THE REVENUE IS AGGRIEVED BY THE DECISION OF LD CIT(A) IN HOLDING THAT THE ASSESSEE IS ENTITLED TO CARRY FORWARD THE DEFICI T AMOUNT OF CURRENT YEAR FOR SETTING IT OFF AGAINST INCOME OF SUBSEQUENT YEARS AS APPLICATION OF INCOME U/S 11 OF THE ACT. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE. HOWEVER I NOTICE THAT THE LD CIT(A) HAS FOLLOWED THE DECISION RENDERED BY HONBLE J URISDICTIONAL BOMBAY HIGH COURT RENDERED IN THE CASE OF INSTITUTE OF BANKING PERSONNEL (264 ITR 110). HENCE I PROCEED TO DISPOSE OF THE APPEAL EX - PARTE, WITHOUT THE PRESENCE OF THE ASSESSEE. 3. I HEARD LD D.R AND PERUSED THE RECORD. THE ASSESSEE IS A PUBLIC CHARITABLE TRUST REGISTERED WITH DIT(E), MUMBAI U/S 12A OF THE ACT. THE ASSESSEE HAD APPLIED FUNDS IN EXCESS OF ITS INCOME AND ACCORDINGLY DECLARED DEFICIT OF RS.120.19 LAKHS AND SOUGHT TO CARRY FORWARD THE SAME TO THE MORSIWALA MANZIL MUSAFIRKHAN 2 SUCCEEDING YEAR. THE AO RE JECTED THE SAME. HOWEVER, THE LD CIT(A) ALLOWED THE CLAIM OF THE ASSESSEE BY FOLLOWING THE DECISION RENDERED BY THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF INSTITUTE OF BANKING PERSONNEL (SUPRA). THE REVENUE IS AGGRIEVED BY THE SAID DECISION. 4 . THE LD D.R SUBMITTED THAT THE REVENUE HAS NOT ACCEPTED THE DECISION RENDERED BY THE BOMBAY HIGH COURT IN THE CASE OF INSTITUTE OF BANKING PERSONNEL (SUPRA) AND IT HAS FILED APPEAL BEFORE HONBLE SUPREME COURT. HOWEVER, DECISION RENDERED BY THE JURISDI CTIONAL HIGH COURT IS BINDING UPON ALL THE AUTHORITIES BELOW IT AND HENCE THE SAME IS REQUIRED TO BE FOLLOWED TILL THE TIME IT IS REVERSED BY THE HIGHER COURT. SINCE THE LD CIT(A) HAS FOLLOWED THE BINDING DECISION OF JURISDICTIONAL HIGH COURT, I DO NOT FI ND ANY REASON TO INTERFERE WITH HIS ORDER. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER HAS BE EN PRONOUNCED IN THE COURT ON 1 4 . 9 . 201 7. SD/ - (B.R.BASKARAN) ACCOUNTANT MEMBER MUMBAI ; DATED : 1 4 / 9 / 20 1 7 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) PS ITAT, MUMBAI