THE MUMBAI DISTRICT CO-OPERATIVE HOUSING FEDERATION LTD., MUMBAI V. ITO 17(2)(4), MUMBAI

ITA 3362/MUM/2019

• Counselvise Citation: [NaN] 107 COUNSELVISE.COM (IT) 2057 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 8 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-02-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 20-05-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 92

Judgement Text

आयकर अपीलीय अिधकरण मुंबई पीठ “स.एम.सी” मुंबई ŵी िवकास अव̾थी, Ɋाियक सद˟ एवं ŵी गगन गोयल, लेखा सद˟ के समƗ IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “SMC”, MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SHRI GAGAN GOYAL, ACCOUNTANT MEMBER आअसं.3362/मुं/2019(िन.व. 2013-14) ITA No. 3362/MUM/2019 (A.Y.2013-14) The Mumbai District Co-operative Housing Federation Ltd., 103, Vikas Premises, 1 st Floor, 11, G.N. Vaidya Marg, Fort, Mumbai-400001. PAN: AAAAT4408Q ...... अपीलाथŎ /Appellant बनाम Vs. ITO-17(2)(4), 123B, Aayakar Bhavan, M.K. Road, Churchgate, Mumbai-400020. ..... Ůितवादी/Respondent अपीलाथŎ Ȫारा/ Appellant by : Sh. Mandar Vaidya with Sh. Kalpesh Turalkar Ůितवादी Ȫारा/Respondent by : Sh. T. Shankar, Sr. DR सुनवाई की ितिथ/ Date of hearing : 03/02/2022 घोषणा की ितिथ/ Date of pronouncement : 03/02/2022 आदेश/ ORDER PER VIKAS AWASTHY, JM: This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals)-28, Mumbai [hereinafter referred to as ‘the CIT(A)’] dated 19.03.2019 for the Assessment Year (AY) 2013-14. 2 आअसं. 3362/मुं/2019 (िन.व. 2013-14) ITA No. 3362/Mum/2019 (A.Y. 2013-14) 2. Sh. Mandar Vaidya with Sh. Kalpesh Turalkar appearing on behalf of the assessee submitted that the solitary addition assailed in the present appeal is in respect of income from Advertisement Rs. 6,81,697/-. The ld. Counsel for the assessee submitted that the assessee is a Co-operative Housing Society. The assessee earned gross total income of Rs. 45,97,960/- and claimed deduction of the aforesaid income u/s 80P(2) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) based on the principles of mutuality. The Assessing Officer (AO) rejected assessee’s claim qua income from advertisement and held the aforesaid income as ‘Income from Business’. The AO while computing income under the head ‘Business Income’, allowed direct expenditure in relation to earning of income from advertisement and made addition of Rs. 6,81,693/-. The assessee claimed that there were some indirect expenditure as well for earning of advertisement income that were not allowed by the AO. The assessee carried the issue in appeal before the CIT(A). The CIT(A) also rejected the claim of assessee. The ld. counsel referred to the table at page no.3 of the assessment order wherein the assessee had claimed proportionate indirect expenditure against the income from advertisement. The ld. Counsel for the assessee submitted that the issue can be referred back to the file of AO for fresh examination. The asssessee would furnish fresh calculations for claiming proportionate indirect expenditure with justifications. 3. Sh. T. Shankar representing the Department vehemently defended the impugned order. The ld. Departmental Representative (DR) submitted that the working of allocation of indirect expenditure was considered by the AO and the same has already been rejected. No useful purpose would be served by restoring the issue back to the file of AO. 3 आअसं. 3362/मुं/2019 (िन.व. 2013-14) ITA No. 3362/Mum/2019 (A.Y. 2013-14) 4. We have heard the submissions made by rival sides and have examined the orders of authorities below. The short issue in the present appeal is with regard to the assessee’s claim of indirect expenditure in earning of advertisement expenses. The ld. Counsel of the assessee has submitted that the issue can be restored back to the file of AO, the assessee would furnish fresh calculations and the basis of allocation of indirect expenditure. Without commenting on the merits of the issue and allowability or otherwise of the indirect expenditure, the issue is restored back to the file of AO to examine working already filed or revised working, if any filed by the assessee along with the basis of allocation of indirect expenditure in earning income from advertisement. Needless to say that the AO shall grant reasonable opportunity of hearing to the assessee before deciding this issue afresh, in accordance with law. 5. In the result, appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on Thursday, the 3 rd day of February, 2022. Sd/- Sd/- (GAGAN GOYAL) (VIKAS AWASTHY) लेखा सद˟/ACCOUNTANT MEMBER Ɋाियक सद˟/JUDICIAL MEMBER मुंबई/Mumbai, िदनांक/Dated: 03/02/2022 S.K., Sr. PS Ůितिलिप अŤेिषतCopy of the Order forwarded to : 1. अपीलाथŎ/The Appellant , 2. Ůितवादी/ The Respondent. 3. आयकर आयुƅ(अ)/ The CIT(A)- 4. आयकर आयुƅ CIT 5. िवभागीय Ůितिनिध, आय.अपी.अिध., मुबंई/DR, ITAT, Mumbai 6. गाडŊ फाइल/Guard file. 4 आअसं. 3362/मुं/2019 (िन.व. 2013-14) ITA No. 3362/Mum/2019 (A.Y. 2013-14) BY ORDER, //True Copy// (Dy./Asstt. Registrar) ITAT, Mumbai