MATRA HOMELAND PVT LTD., MUMBAI V. ITO-5(3)(1), MUMBAI

ITA 4211/MUM/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 0220 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-12-2020
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Appeal Filed On: 12-06-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Business income; Principle of natural justice
• Section: 201; 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI BEFORE SHRI AMARJIT SINGH, JM AND SHRI MANOJ KUMAR AGGARWAL , AM / I .T.A. NO. 4211 / MUM/ 201 9 ( / ASSESSMENT YEAR: 20 15 - 16 ) MATRA HOMELAND PVT. LTD. 307, SHALIMAR MORYA PARK, LINK ROAD, ANDHERI (W), MUMBAI - 400053 . / VS. ITO 5(3) AAYAKAR BHAVAN, M. K. ROAD, MUMBAI. ./ ./ PAN/GIR NO. : AAACR 5732 K ( / APPELLANT ) .. ( / RESPONDENT ) / DATE OF HEARING: 21 / 1 2 / 20 20 /DATE OF PRONOUNCEMENT: 21 / 1 2 / 20 20 / O R D E R PER AMARJIT SINGH, JM: THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER DATED 30 . 0 4 .201 9 PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS), 10 MUMBAI [HEREINAFTER REFERRED TO AS THE CIT(A)]. RELEVANT TO THE A.Y. 2015 - 16 . 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS.: - I. THE COM MISSIONER OF INCOME - TAX (APPEALS) - 10, MUMBAI (HEREINAFTER REFERRED TO AS THE CIT(A)) ERRED IN TREATING THE INTEREST INCOME OF RS.2,10,100/ - AS 'INCOME FROM OTHER SOURCES' INSTEAD OF BUSINESS INCOME. THE APPELLANTS CONTEND THAT ON THE FACTS AND IN THE CIR CUMSTANCES OF THE CASE AND IN LAW, THE CIT(A) OUGHT NOT TO HAVE CONSIDERED THE SAID INCOME AS INCOME FROM OTHER SOURCES. ASSESSEE BY : SHRI AKASH KUMAR (AR) REVENUE BY: SHR I SANJAY J. SETHI (DR) ITA NO. 4211 /M/201 9 A.Y.20 15 - 16 2 THE APPELLANTS FURTHER, CONTEND THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN TAW, THE IMPUGNED ACTION OF THE CIT(A) IS IN VIOLATION OF THE PRINCIPLES OF NATURAL JUSTICE INASMUCH AS HE HAS NOT GIVEN AN OPPORTUNITY OF HEARING TO THE APPELLANTS BEFORE TREATING THE SAID INCOME AS INCOME FROM OTHER SOURCES AND HENCE, THE ACTION NEEDS TO BE REVERSED. WITHOUT PREJUDICE, THE APPE LLANTS CONTEND THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE ISSUE REGARDING CLASSIFICATION OF THE SAID INCOME WAS NOT BEFORE THE CIT(A) AND THUS, THE ACTION OF THE CTT(A) IN TREATING THE SAME UNDER THE HEAD 'INCOME FROM OTHER SOUR CES' IS UNWARRANTED. 2. THE CIT(A) ERRED IN UPHOLDING THE ACTION OF THE ASSESSING OFFICER IN MAKING THE ADDITION TO THE TUNE OF RS.1,59,931/ - OUT OF SALARY EXPENSES DEBITED TO THE PROFIT AND LOSS ACCOUNT WITHOUT GIVING PROPER REASONS. THE APPELLANTS CONTEN D THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE CIT(A) OUGHT TO HAVE ALLOWED THE IMPUGNED EXPENSE INASMUCH AS THE CIT(A) HAS NOT CORRECTLY APPRECIATED THE FACTS OF THE CASE IN ITS ENTIRETY AND HENCE, THE ADDITION SUSTAINED NEEDS TO BE DELETED. 3 . WHEN THIS APPEAL WAS CALLED OUT FOR HEARING, THE LD. COUNSEL OF THE ASSESSEE SUBMITTED THAT HE HAS FILED THE NECESSARY DECLARATION UNDER DIRECT TAX VIVAD SE VISHWAS ACT, 2020 (ACT 3 OF 2020) AND IS AWAITING FOR FINAL RESOLUTION OF THE MAT TER UNDER THE SAID SCHEME. HE SUBMITTED THAT UPON COMPLETION OF THE NECESSARY FORMALITIES, HE WILL WITHDRAW THE APPEAL. IN RESPONSE TO THE SUGGESTION FROM THE BENCH, HE FAIRLY ACCEPTED THAT HE HAS NO OBJECTION TO THE APPEAL BEING DISMISSED AS WITHDRAWN AS LONG AS HIS RIGHT FOR REVIVAL OF THE APPEAL ARE PROTECTED, IN THE EVENT OF, FOR SOME UNFORTUNATE REASON, THE MATTER BEING NOT SETTLED UNDER THE VIVAD SE VISHWAS SCHEME. ITA NO. 4211 /M/201 9 A.Y.20 15 - 16 3 4 . THE LD. DR ALSO DID NOT OBJECT TO DISGRACE SO SUGGESTED. 5 . IN VIEW OF THE ABOVE, WE DISMISS THE APPEAL AS WITHDRAWN, SUBJECT TO BE RIDER THAT IN THE UNLIKELY EVENT OF MATTER NOT BEING RESOLVED UNDER THE VIVAD SE VISHWAS SCHEME , THE ASSESSEE SHALL HAVE LIBERTY TO APPROACH THE TRIBUNAL FOR RESTORATION OF HIS APPEAL. 6 . IN THE RESULT, THE A PPEAL IS DISMISSED AS WITHDRAWN SUBJECT TO THE OBSERVATION ABOVE. ORDER PRONOUNCED IN THE OPEN COURT ON 21 / 1 2 /2020 SD/ - SD / - / - ( MANOJ KUMAR AGGARW AL (AMARJIT SINGH) / ACCOUNTANT MEMBER / JUDICIAL MEMBER MUMBAI; DATED : 21 / 12 / 2020 V IJAY PAL SINGH ( SR.PS ) / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE. / BY ORDER, //TRUE COPY// / /(DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI