ACIT 11(2), MUMBAI V. A.F. FERGUSON & CO., MUMBAI

ITA 347/MUM/2013

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 2104 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 10 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 18-11-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 11-01-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR DARSI SUMAN RATNAM
• Assessee Lawyers: JAYESH DESAI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, MUM BAI , BEFORE SHRI SHAILENDRA KUMAR YADAV, JM AND SHRI RAJESH KUMAR, AM ITA NO. 347/MUM/2013 ( ASSESSMENT YEAR: 2007-08) A C I T - 11(2) /APPELLANT ROOM NO. 479, 4TH FLOOR AYAKAR BHAVAN, M.K. ROAD MUMBAI 400020 VS. M/S. A.F. FERGUSON & CO. RESPONDENT ALLAHABAD BANK BLDG. BOMBAY SAMACHAR MARG MUMBAI 400030 PAN - AABFA5846M APPELLANT BY: DR. DARSI SUMAN RATNAM / RESPONDENT BY: SHRI JAYESH DESAI & SHRI SURAJ NAIR DATE OF HEARING : 18.11.2015 /DATE OF PRONOUNCEMENT : 30.11.2015 O R D E R PER SHAILENDRA KUMAR YADAV, JM THIS APPEAL HAS BEEN FILED BY REVENUE AGAINST THE O RDER OF CIT(A) ON FOLLOWING GROUNDS: - 1) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD. CIT(A) WAS JUSTIFIED IN DELETING THE A DDITION OF RS.76,33,941/- ON ACCOUNT OF PAYMENT TO RETIRED PAR TNERS 2 ITA NO. 347/MUM/2013 M/S. A.F. FERGUSON & CO. AND WIVES OF RETIRED PARTNERS WITHOUT APPRECIATING THE FACT THAT THE DEPARTMENT HAS FILED SLP ON SIMILAR ISSUE FOR A.YR. 2004-05 AND 2006-07. 2. ASSESSING OFFICER NOTED THAT THE ASSESSEE MADE PAYM ENTS TO RETIRED PARTNERS AMOUNTING TO ` 64,07,500/-, WIDOWS OF RETIRED PARTNERS AND MR. E.A. KSHIRSAGAR AMOUNTING TO ` 12,26,441/-. ASSESSEE WAS REQUIRED TO EXPLAIN AS TO WHY THE AFOR ESAID PAYMENTS SHOULD NOT BE DISALLOWED. ASSESSEE REPLIED THAT ASS ESSING OFFICER NOTED THAT THE DEPARTMENT HAS NOT ACCEPTED THE DECI SION OF THE HON'BLE BOMBAY HIGH COURT IN C.C. CHOKSHI & CO. ON WHICH RELIANCE WAS PLACED BY ASSESSEE AS THE DEPARTMENT HAD FILED AN SLP BEFORE THE SUPREME COURT AGAINST THE AFORESAID DECISION. F URTHER, ASSESSING OFFICER OBSERVED THAT THE DECISION OF THE HON'BLE B OMBAY HIGH COURT IN CIT VS. V.G. BHUTA (203 ITR 249) WAS SQUARELY AP PLICABLE TO ASSESSEES CASE. ACCORDINGLY, THE PAYMENTS TO RETIR ED PARTNERS AND WIVES OF RETIRED PARTNERS AMOUNTING TO ` 76,33,941/- WAS DISALLOWED. 2.1 THE MATTER WAS CARRIED BEFORE THE FIRST APPELLA TE AUTHORITY WHEREIN IT WAS SUBMITTED IN SIMILAR SET OF FACTS IT AT FOR AY 2006-07 VIE ORDER DATED 10.08.2011 IN THE ASSESSEE'S OWN CA SE HAS DELETED THE ADDITION MADE ON ACCOUNT OF PAYMENT TO RETIRED PARTNERS AND WIVES OF RETIRED PARTNERS BY PLACING RELIANCE ON THE DECISION OF ITAT IN THE ASSESSES OWN CASE FOR ASSESSMENT YEARS 2003-04 AND 2004-05. LEARNED COUNSEL OF THE ASSESSEE FURTHER SUBMITTED T HAT THE HON'BLE 3 ITA NO. 347/MUM/2013 M/S. A.F. FERGUSON & CO. BOMBAY HIGH COURT IN ASSESSEES OWN CASE FOR ASSESS MENT YEARS 2003-04 AND 2004-05 HAS DISMISSED THE APPEAL FILED BY THE DEPARTMENT AGAINST THE ITAT'S ORDER. ACCORDINGLY, A SSESSEE SUBMITTED THAT THE ISSUE IS COVERED IN ITS FAVOUR AND HENCE T HE DISALLOWANCE SHOULD BE DELETED. HAVING CONSIDERED THE SAME CIT(A ) DELETED THE ADDITION IN QUESTION MADE BY THE ASSESSING OFFICER FOLLOWING THE DECISION OF THE HON'BLE BOMBAY HIGH COURT IN ASSESS EES OWN CASE FOR ASSESSMENT YEARS 2003-04 & 2004-05 AND ALSO THE DEC ISION OF THE ITAT OF A.Y. 2006-07. NOTHING CONTRARY WAS BROUGHT TO OUR KNOWLEDGE ON BEHALF OF REVENUE. IN VIEW OF THIS, WE HOLD THA T CIT(A) WAS JUSTIFIED TO DELETE THE ADDITION IN QUESTION FOR TH E REASONS DISCUSSED ABOVE AND THEREFORE THE REASONED FINDING OF THE CIT (A) DOES NOT REQUIRE ANY INTERFERENCE FROM OUR PART. WE UPHOLD T HE SAME. 3. IN THE RESULT, APPEAL FILED BY THE REVENUE IS DISMI SSED. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH NOVEMBER, 2015. 30.11.2015 SD/- SD/- ( RAJESH KUMAR ) ( SHAILENDRA KUMAR YADAV ) /ACCOUNTANT MEMBER /JUDICIAL MEMBER MUMBAI, DATED 30 TH NOVEMBER, 2015 4 ITA NO. 347/MUM/2013 M/S. A.F. FERGUSON & CO. COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. / THE CIT(A) - 3, MUMBAI 4. / THE CIT - 11, MUMBAI 5. / DR, A BENCH ITAT, MUMBAI 6. GUARD FILE. / BY ORDER //TRUE COPY// /ASSTT. REGISTRAR) /ITAT, MUMBAI N.P.