DY. CIT-16(3), MUMBAI V. M/S. METRO MOTORS AUTO DIVISION, MUMBAI

ITA 3786/MUM/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 55208 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 3 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-09-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 05-09-2011
• Assessment Year: misc
• Appeal Filed On: 11-05-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PARMINDER
• Keywords: Business expenditure

Judgement Text

IN THE INCOME TAX APPELLATE TRIB UNAL MUMBAI BENCHES B, MUMBAI BEFORE SHRI R.S.SYAL, AM AND SHRI VIJAY PAL RAO, JM ITA NO.3786/MUM/2010 : ASST.YEAR 2002-2003 THE DY.COMMISSIONER OF INCOME-TAX CIRCLE 16(3) MUMBAI. VS. M/S.METRO MOTORS AUTO DIVISION 65N SITARAM PATKAR MARG MUMBAI 400 007. PAN : AABFM7783R. (APPELLANT) (RESPONDENT) APPELLANT BY : SMT.PARMINDER RESPONDENT BY : --- NONE --- DATE OF HEARING : 05.09.2011 DATE OF PRONOUNCEMENT :09.09.2011 O R D E R PER R.S.SYAL, AM : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER PASSED BY THE COMMISSIONER OF INCOME-TAX (APPEALS) ON 05.02.2010 IN RELATION TO THE ASSESSMENT YEAR 2002-2003. 2. THE ONLY GROUND RAISED IN THIS APPEAL IS AGAINST THE DELETION OF DISALLOWANCE OF RS.40 LAKH BEING THE AMOUNT PAID TO BOMBAY METRO MOTORS LIMITED AS NON- COMPETE FEE. 3. GROUND NO.2 OF THE APPEAL READS AS UNDER:- THE LD.CIT(A) ERRED IN FOLLOWING THE DECISION OF H ONBLE I.T.A.T IN THE ASSESSEES OWN CASE FOR A.Y.2000-01 AND 2001-02 WHEREIN IT HAS BEEN HELD THAT THIS EXPENDITURE WAS REVENUE IN NATU RE AND HAS TO BE ALLOWED AS A BUSINESS EXPENDITURE FROM THE INCOME O F THE ASSESSEE. THE DECISION HAS NOT BEEN ACCEPTED BY THE DEPARTMEN T AND THE ISSUE IS SUB-JUDICE. 4. WE HAVE HEARD THE LEARNED DEPARTMENTAL REPRESENT ATIVE AND PERUSED THE RELEVANT MATERIAL ON RECORD. THERE IS NO APPEARANCE FROM THE SIDE OF THE ASSESSEE ITA NO.3786/MUM/2010 M/S.METRO MOTORS AUTO DIVISION. 2 DESPITE NOTICE. IT IS NOTICED THAT THE ASSESSEE CLA IMED DEDUCTION FOR RS.40 LAKH AS NON-COMPETE CHARGES PAID TO M/S. BOMBAY METRO MOTOR S LIMITED. SIMILAR AMOUNT WAS PAID IN ASSESSMENT YEARS 2000-2001 AND 2001-200 2 I.E. IMMEDIATELY PRECEDING TWO YEARS. THE TRIBUNAL HAS HELD SUCH EXPENDITURE T O BE DEDUCTIBLE IN BOTH THE YEARS VIDE ITS ORDER DATED 29 TH MAY, 2007 AND 30 TH APRIL, 2008. IT IS APPARENT FROM GROUND NO. 2 EXTRACTED ABOVE THAT THE LEARNED CIT(A ) HAS DELETED THE ADDITION FOLLOWING THE TRIBUNAL ORDER FOR THE PRECEDING TWO YEARS WHICH HAVE NOT BEEN ACCEPTED BY THE DEPARTMENT. THERE IS NO MATERIAL TO INDICATE THAT THE EARLIER ORDER OF THE TRIBUNAL HAS BEEN REVERSED OR MODIFIED BY TH E HONBLE HIGH COURT IN ANY MANNER. AS THE LEARNED DEPARTMENTAL REPRESENTATIVE COULD NOT POINT OUT ANY DISTINGUISHING FEATURE IN THE FACTS OF THE INSTANT CASE VIS-A-VIS THOSE ALREADY DECIDED BY THE TRIBUNAL IN THE IMMEDIATELY PRECEDING TWO AS SESSMENT YEARS, WE UPHOLD THE IMPUGNED ORDER ON THIS ISSUE. 5. IN THE RESULT, THE APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 09 TH DAY OF SEPTEMBER, 2011. SD/- SD/- (VIJAY PAL RAO) (R.S.SYAL) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI : 09 TH SEPTEMBER, 2011. DEVDAS*` COPY TO : 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT CONCERNED 4. THE CIT(A) - XXVII, MUMBAI. 5. THE DR/ITAT, MUMBAI. 6. GUARD FILE. TRUE COPY. BY ORDER ASSISTANT REGISTRAR, ITAT, MUMBAI.