TATA INDUSTRIES LTD, MUMBAI V. ACIT 2(3), MUMBAI

ITA 3418/MUM/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 9716 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 10 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-03-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2007-2008
• Appeal Filed On: 16-05-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S PADMAJA
• Keywords: Cost of acquisition

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH F, MUMBAI BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER ITA NO.3418/M/2016 ASSESSMENT YEAR: 2007-08 M/S. TATA INDUSTRIES LTD., BOMBAY HOUSE, 24, HOMI MODY STREET, FORT, MUMBAI 400 001 PAN: AAACT4058L VS. ASSISTANT COMMISSIONER OF INCOME TAX 2(3) [NOW KNOWN AS DEPUTY COMMISSIONER OF INCOM TAX, RANGE 2(3)(1), MUMBAI] AAYAKAR BHAVAN, MAHARISHI KARVE ROAD, MUMBAI - 400020 (APPELLANT) ( RESPONDENT) PRESENT FOR: ASSESSEE BY :SMT. ARATI VISSANJI, A.R. REVENUE BY :SMT. S. PADMAJA, D.R. DATE OF HEARING : 19.03.2018 DATE OF PRONOUNCEMENT : 22.03.2018 O R D E R PER RAJESH KUMAR, ACCOUNTANT MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSES SEE AGAINST THE ORDER DATED 29.03.2016 OF THE COMMISSIONE R OF INCOME TAX (APPEALS) [HEREINAFTER REFERRED TO AS TH E CIT(A)] RELEVANT TO ASSESSMENT YEAR 2007-08. 2. THE VARIOUS GROUNDS RAISED BY THE ASSESSEE ARE A S UNDER: THE APPELLANT RESPECTFULLY CRAVES LEAVE TO PREFER A N APPEAL AGAINST THE ORDER PASSED BY COMMISSIONER OF INCOME TAX (APPEALS ) ['CIT(A)'] DATED 29 MARCH 2016 UNDER SECTION 250 OF THE INCOME-TAX ACT, 1961 ('THE ACT') ON THE FOLLOWING GROUND: ITA NO.3418/M/2016 M/S. TATA INDUSTRIES LTD. 2 NON GRANTING OF DEDUCTION FOR COST OF USD 150 MILLI ON WHILE COMPUTING THE SHORT TERM CAPITAL GAINS. 1 . ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE LEARNED CIT(A) ERRED IN UPHOLDING THE ACTION OF THE ASSESSI NG OFFICER IN NOT CONSIDERING THE COST OF ACQUISITION OF US$150 MILLION I.E. RS 661,5 7,50,000/- PAID BY THE APPELLANT TO ACQUIRE SHARES OF APEX INVESTMENT (MAURITIUS) HO LDING (P) LIMITED WHILE COMPUTING THE SHORT TERM CAPITAL GAINS. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE LEARNED CIT(A) ERRED IN HOLDING THAT THE EARLIER CIT(A) ' H AS NOT ONLY GIVEN A FINDING ABOUT THE NATURE OF ADDITION BUT ALSO THE QUANTUM OF SUCH SHORT-TERM CAPITAL GAIN. 3. THE ISSUE RAISED BY THE ASSESSEE IS AGAINST THE ORDER OF LD. CIT(A) UPHOLDING THE ACTION OF THE AO IN NOT CON SIDERING THE COST OF ACQUISITION PAID BY THE ASSESSEE TO PUR CHASE THE SHARES OF APEX INVESTMENT (MAURITIUS) HOLDING (P) L TD. WHILE COMPUTING THE SHORT TERM CAPITAL GAIN. 4. AT THE OUTSET, THE LD. SENIOR COUNSEL MRS. ARATI V ISSANJI BROUGHT TO THE NOTICE OF THE BENCH THAT THE ISSUE R AISED BY THE ASSESSEE HAS BECOME ACADEMIC IN NATURE IN VIEW OF T HE FACT THAT THE ISSUE HAS BEEN DECIDED BY THE CO-ORDINATE BENCH OF THE TRIBUNAL IN THE ASSESSEES OWN CASE IN ITA NO.6750/M/2014 A.Y. 2007-08 VIDE ORDER DATED 10.11.17. THE LD. A.R. REFERRED TO PARA NO.8.1 OF THE SAID ORDER AND SUBMITTED THAT THE CO-ORDINATE BENCH OF THE TRIBUNA L HAS DECIDED THE ISSUE IN FAVOUR OF THE ASSESSEE SO FAR THE APPLICABILITY OF PROVISION OF SECTION 93 OF THE ACT IS CONCERNED AND ACCORDINGLY NO TAX IS PAYABLE. 5. THE LD. D.R. ALSO FAIRLY AGREED TO THE CONTENTION O F THE LD. A.R. ON THE ISSUE THAT THE ISSUE HAS BEEN COVERED IN FAVOUR ITA NO.3418/M/2016 M/S. TATA INDUSTRIES LTD. 3 OF THE ASSESSEE AND RESULTANTLY THE PRESENT APPEAL FILED BY THE ASSESSEE HAS BECOME ACADEMIC. 6. HAVING HEARD BOTH THE PARTIES AND PERUSED THE REL EVANT MATERIAL PLACED BEFORE US INCLUDING THE IMPUGNED OR DER, WE ARE OF THE VIEW THAT ISSUE HAS ALREADY BEEN DECIDED BY THE ITAT AND THUS THE APPEAL HAS BECOME ACADEMIC. ACC ORDINGLY, APPEAL OF THE ASSESSEE IS DISMISSED AS INFRUCTUOUS. ORDER PRONOUNCED IN THE OPEN COURT ON 22.03.2018. SD/- SD/- (PAWAN SINGH) (RAJESH KUMAR) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DATED: 22.03.2018. * 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.