MASTER MARINE SERVICES P. LTD, MUMBAI V. ACIT (OSD) CIR 2(2), MUMBAI

ITA 3349/MUM/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 55678 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-10-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: H
• Next Hearing Date: 17-10-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 29-04-2010
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: V V SHASTRI
• Assessee Lawyers: NISHANT THAKKAR
• Section: 234B; 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL H BENCH, MUMBAI BEFORE SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER AN D SHRI VIJAY PAL RAO, JUDICIAL MEMBER ITA NO. 3349/MUM./2010 (ASSESSMENT YEAR : 2006-07 ) M/S. MASTER MARINE SERVICES P. LTD. 22-D, S.A. BRELVI ROAD, FORT MUMBAI 400 001 PAN AAACM8057C .. APPELLANT V/S ASSTT. COMMISSIONER OF INCOME TAX (OSD), CIRCLE-2(2), AAYAKAR BHAVAN 101, M.K. ROAD, MUMBAI 400 020 .... RESPONDENT ASSESSEE BY : MR. NISHANT THAKKAR REVENUE BY : MR. V.V. SHASTRI DATE OF HEARING 17.10.2011 DATE OF ORDER 21.10.2011 O R D E R PER J. SUDHAKAR REDDY, A.M. THIS APPEAL PREFERRED BY THE ASSESSEE, IS DIRECTED AGAINST THE IMPUGNED ORDER DATED 19 TH FEBRUARY 2010, PASSED BY THE COMMISSIONER (APPEALS)-V, MUMBAI, FOR ASSESSMENT YEAR 2006-07. M/S. MASTER MARINE SERVICES P. LTD. ITA NO.3349/M/2010 2 2. GROUND NO.1 & 2, RAISED BY THE ASSESSEE IS ON THE I SSUE OF DISALLOWANCE OF ` 8,81,833 UNDER SECTION 14A OF THE INCOME TAX ACT, 1961 (FOR SHORT THE ACT ) APPLYING RULE 8D. 3. WE HAVE HEARD LEARNED COUNSEL, MR. NISHANT THAKKAR, ON BEHALF OF THE ASSESSEE AND LEARNED DEPARTMENTAL REPRESENTATIVE, M R. V.V. SHASTRI, ON BEHALF OF THE REVENUE. ON A CAREFUL CONSIDERATION O F THE FACTS AND CIRCUMSTANCES OF THE CASE AND ON PERUSAL OF THE PAP ERS ON RECORD, AS WELL AS THE CASE LAWS CITED BEFORE US, WE FIND THAT THE COM MISSIONER (APPEALS), WHILE DISPOSING OFF THIS ISSUE, FOLLOWED MUMBAI SPE CIAL BENCH DECISION OF THE TRIBUNAL RENDERED IN ITO V/S DAGA CAPITAL MANAGEMEN T P. LTD., (2008) 119 TTJ (MUM.) 289 (SB). THE HON'BLE JURISDICTIONAL HIG H COURT IN GODREJ & BOYCE MFG. CO. LTD. V/S DCIT, (2010), 328 ITR 081 ( BOM.), HAS PARTLY REVERSED THE DECISION OF MUMBAI SPECIAL BENCH OF TH E TRIBUNAL IN DAGA CAPITAL MANAGEMENT P. LTD. (SUPRA). UNDER THESE CIR CUMSTANCES, WE DEEM IT APPROPRIATE TO SET ASIDE THE IMPUGNED ORDER PASSED BY THE COMMISSIONER (APPEALS) AND RESTORE THE ISSUE BACK TO THE FILE OF ASSESSING OFFICER FOR DENOVO ADJUDICATION IN LINE WITH THE PROPOSITIONS L AID DOWN BY THE HONBLE JURISDICTIONAL HIGH COURT IN GODREJ & BOYCE MFG. CO . LTD. (SUPRA). THE ASSESSING OFFICER SHALL NOT APPLY RULE-8D, FOR THE IMPUGNED ASSESSMENT YEAR. CONSEQUENTLY, THESE GROUNDS ARE ALLOWED FOR S TATISTICAL PURPOSES. 4. THE ASSESSEE HAS ALSO RAISED AN ADDITIONAL GROUND O F APPEAL, ON THE ISSUE OF LIMITATION. 5. BEFORE US, LEARNED COUNSEL FOR THE ASSESSEE SUBMITT ED THAT HE DID NOT WISH TO PRESS THIS GROUND. CONSEQUENTLY, THIS ADDIT IONAL GROUND IS DISMISSED AS NOT PRESSED . 6. THE LAST GROUND IS ON THE ISSUE OF INTEREST CHARGED UNDER SECTION 234B AND 234C. M/S. MASTER MARINE SERVICES P. LTD. ITA NO.3349/M/2010 3 7. CHARGING OF INTERESTS UNDER SECTION 234B AND 234C A RE MANDATORY AND CONSEQUENTIAL IN NATURE. THE ASSESSING OFFICER IS D IRECTED TO GIVE CONSEQUENTIAL EFFECT. 8. IN THE RESULT, ASSESSEES APPEAL IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 21 ST OCTOBER 2011 SD/- VIJAY PAL RAO JUDICIAL MEMBER SD/- J. SUDHAKAR REDDY ACCOUNTANT MEMBER MUMBAI, DATED: 21 ST OCTOBER 2011 COPY TO : (1) THE ASSESSEE; (2) THE RESPONDENT; (3) THE CIT(A), MUMBAI, CONCERNED; (4) THE CIT, MUMBAI CITY CONCERNED; (5) THE DR, H BENCH, ITAT, MUMBAI. TRUE COPY BY ORDER PRADEEP J. CHOWDHURY ASSISTANT REGISTRAR SR. PRIVATE SECRETARY ITAT, MUMBAI BENCHES, MUMBAI