TRAVOTEL (INDIA) P.LTD, MUMBAI V. ITO WD 2(3)(3), MUMBAI

ITA 3343/MUM/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 0663 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-05-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 12-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M C OMI NINGSHEN
• Keywords: Business income
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH H, MUMBAI BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER AND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER ITA NO.3343/M/2016 ASSESSMENT YEAR: 2011-12 M/S. TRAVOTEL (INDIA) PVT. LTD., 46/A, CAWASJI PATEL STREET, FORT, MUMBAI 400 001 PAN: AAACT1982D VS. THE INCOME TAX OFFICER, WARD -2(3)-3, AAYAKAR BHAVAN, MAHARSHI KARVE ROAD, MUMBAI - 400020 (APPELLANT) (RESPONDENT) PRESENT FOR: ASSESSEE BY : SHRI KETAN VED, A.R. REVENUE BY : SHRI M.C. OMI NINGSHEN, D.R. DATE OF HEARING : 11.04.2017 DATE OF PRONOUNCEMENT : 12.05.2017 O R D E R PER D.T. GARASIA, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSES SEE AGAINST THE ORDER DATED 02.02.2016 OF THE COMMISSIONER OF INCOME TAX (APPEALS) [HEREINAFTER REFERRED TO AS THE CIT(A)] RELEVANT TO ASSESSMENT Y EAR 2011-12. 2. IN THIS APPEAL THE ASSESSEE HAS RAISED TWO GROUN DS OF APPEAL. GROUND NO.1 RELATES TO DISALLOWANCE OF EXPENSES AND GROUND NO.2 RELATES TO COMPUTATION OF INCOME UNDER THE HEAD INCOME FROM O THER SOURCES. 3. THE SHORT FACTS OF THE CASE ARE THAT THE ASSESSE E HAS FILED ITS RETURN OF INCOME ON 27.09.2011 FOR THE ASSESSMENT YEAR 2011-1 2 DECLARING TOTAL INCOME AT RS.93,070/-. THE CASE WAS SELECTED FOR SCRUTINY . THE ASSESSING OFFICER (HEREINAFTER REFERRED TO AS THE AO) FOUND THAT NO B USINESS ACTIVITY WAS CARRIED ON BY THE ASSESSEE DURING THE YEAR. THE AO SERVED NOTICE TO THE ASSESSEE REQUIRING THE ASSESSEE TO FURNISH VARIOUS DETAILS. THE ASSESSEE SUBMITTED BEFORE ITA NO.3343/M/2016 M/S. TRAVOTEL (INDIA) PVT. LTD. 2 THE AO THAT THERE WAS TEMPORARY SUSPENSION OF BUSIN ESS AND WAS NOT A CASE OF DISCONTINUATION. THE ASSESSEE FURTHER STATED BEFOR E THE AO THAT THE ASSESSEE WAS ALSO ENGAGED IN THE BUSINESS OF LENDING MONEY A ND PLACING FUNDS IN ICDS, HENCE, THE INCOME FROM THE SAME IS ASSESSABLE AS B USINESS INCOME. HE FURTHER STATED BEFORE THE AO THAT THE INTEREST INCO ME EARNED ON INTER CORPORATE DEPOSIT DURING THE YEAR UNDER CONSIDERATION IS ASSE SSABLE UNDER THE HEAD AS BUSINESS INCOME AND NOT UNDER THE HEAD INCOME FR OM OTHER SOURCES. THE AO DID NOT ACCEPT THE CONTENTION OF THE ASSESSEE AN D COMPLETED THE ASSESSMENT UNDER SECTION 143(3) OF THE ACT ASSESSING TOTAL INC OME AT RS.7,45,632 BY DISALLOWING EXPENSES OF RS.6,52,566/-. 4. THE MATTER CARRIED TO LD. CIT(A) AND THE LD. CIT (A) HAS ALSO DISMISSED THE APPEAL OF THE ASSESSEE. 5. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PARTIES. BEFORE US, THE LD. A.R. HAS SUBMITTED THAT TRIBUNAL, IN THE OWN CA SE OF THE ASSESSEE FOR THE ASSESSMENT YEARS 2005-06 & 2006-07 VIDE ORDER DATED 25.04.2016, HAS ALREADY DEALT WITH THE IDENTICAL ISSUE AND DECIDED IN FAVOU R OF THE ASSESSEE, HENCE, THE MATTER MAY BE DECIDED ACCORDINGLY. 6. WE HAVE CONSIDERED THE SUBMISSIONS MADE BY BOTH THE PARTIES AND HAVE ALSO GONE THROUGH THE ORDER OF THE TRIBUNAL SUBMITT ED BY THE LD. A.R. WE FIND THAT THE TRIBUNAL IN THE ASSESSEES OWN CASE FOR TH E ASSESSMENT YEARS 2005-06 & 2006-07 DATED 25.04.2016 HAS ALREADY DEALT WITH T HE IDENTICAL ISSUES AND DECIDED IN FAVOUR OF THE ASSESSEE BY FOLLOWING TRIB UNALS ORDER DATED 19.03.2009 IN ITA NO.3218/M/2006 IN ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2001-02. HENCE, RESPECTFULLY FOLLOWING THE SA ME RATIO LAID DOWN BY THE TRIBUNAL VIDE ORDER DATED 25.04.2016 IN THE ASSESSE ES OWN CASE FOR THE ASSESSMENT YEARS 2005-06 & 2006-07, WE REMAND THE M ATTER BACK TO THE FILE OF THE AO FOR DECISION AFRESH. ITA NO.3343/M/2016 M/S. TRAVOTEL (INDIA) PVT. LTD. 3 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON 12.05.2017. SD/- SD/- (MANOJ KUMAR AGGARWAL) (D.T. GARASIA) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 12.05.2017. * KISHORE, SR. P.S. COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT (A) CONCERNED, MUMBAI THE DR CONCERNED BENCH //TRUE COPY// [ BY ORD ER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.