M/S SACHIN R. TENDULKAR, MUMBAI V. THE DY CIT CIR 19(3),

ITA 427/MUM/2008

• Counselvise Citation: 42719914 RSA 2008
• Duration Of Justice: 3 year(s) 4 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-05-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: I
• Next Hearing Date: 10-03-2011
• Assessment Year: 2000-2001
• Appeal Filed On: 18-01-2008
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SANJEEV DUTT
• Assessee Lawyers: ARVIND SONDE
• Keywords: Depreciation
• Section: 147; 148

Judgement Text

1 ITA 427 /M/2008 MR. SACHIN TENDULKAR. IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES I BEFORE SHRI R.K. PANDA, A.M. AND SMT. ASHA VIJAYARA GHAVAN, J.M. ITA NO. 427/MUM/2008 ASSESSMENT YEAR 2000-01 MR. SACHIN R. TENDULKAR, LA-MER, 10 TH FLOOR, MISTRY PARK, MT MARY STEPS, BANDRA (W), MUMBAI 400 050. PAN AAAPT 4135 B VS. DY. C.I.T. CIRCLE -19(3), PIRAMAL CHAMBERS, MUMBAI.. APPLICANT RESPONDENT APPELLANT BY SHRI ARVIND SONDE RESPONDENT BY SHRI SANJEEV DUTT ORDER PER R.K. PANDA A.M. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER DATED 29.11.2007 OF CIT(A) XIX, MUMBAI RELATING TO A.Y. 2000-01. 2. IN GROUND NO. 1 THE ASSESSEE HAS CHALLENGED THE ORD ER OF THE CIT(A) IN CONFIRMING THE A.O.S ACTION IN REOPENING THE ASSES SMENT. 3. AFTER HEARING BOTH THE SIDES, WE FIND THE ORIGIN AL RETURN OF INCOME DECLARING TOTAL INCOME AT ` 6,49,03,760/- WAS FILED ON 24 TH OCTOBER, 2000. THE SAME WAS PROCESSED U/S 143(1) OF THE ACT ON 20.03.2 002. SUBSEQUENTLY, THE CASE WAS RE-OPENED U/S 147 FOR THE REASON THAT INCO RRECT CLAIM OF DEDUCTION HAS BEEN MADE BY THE ASSESSEE U/S 80RR OF THE ACT. ACCORDINGLY, NOTICE U/S 148 WAS ISSUED ON 31.03.2006. SINCE THE ORIGINAL A SSESSMENT WAS COMPLETED 2 ITA 427 /M/2008 MR. SACHIN TENDULKAR. U/S 143(1) AND THE NOTICE IS ISSUED WITHIN 6 YEARS FROM THE END OF THE RELEVANT A.Y. AFTER TAKING PRIOR APPROVAL OF THE JCIT, THERE FORE IN VIEW OF THE DECISION OF HONBLE SUPREME COURT IN THE CASE OF RAJESH JHAVERI STOCK BROKERS P. LTD. 291 ITR 510 (SC), THE REASSESSMENT PROCEEDING INITIATED BY THE A.O. IS LEGALLY VALID. GROUND NO. 1 RAISED BY THE ASSESSEE IS ACCORDINGLY DISMISSED. 4. IN GROUND NO. 2, THE ASSESSEE HAS CHALLENGED THE ORDER OF THE CIT(A) IN CONFIRMING THE DISALLOWANCE OF ` 69,64,558/- U/S 80RR. 5. AFTER HEARING BOTH THE SIDES, WE FIND THE ABOVE GROUND IS IDENTICAL TO GROUND NO. 1 IN ITA NO. 429/MUM2008 FOR A.Y. 2003-0 4. VIDE ORDER OF EVEN DATE WE HAVE ALREADY DECIDED THE ISSUE AND THE GROU ND RAISED BY THE ASSESSEE HAS BEEN ALLOWED. FOLLOWING THE SAME RATIO, THE GRO UND RAISED BY THE ASSESSEE IS ALLOWED. 6. IN GROUND NO. 3 (A), 3(B) AND 3(C), THE ASSESSEE HAS CHALLENGED THE ORDER OF CIT(A) IN CONFIRMING THE DISALLOWANCE OF 1/5 TH OF THE MOTOR CAR EXPENSES AMOUNTING TO ` 1,81,322/-, 1/5 TH OF DEPRECIATION ON MOTOR CAR AMOUNTING TO ` 15,376/- AND 1/5 TH OF MOTOR CAR INSURANCE AMOUNTING TO ` 1,08,373/- RESPECTIVELY MADE BY THE A.O. 7. AFTER HEARING BOTH THE SIDES, WE FIND THE ABOVE GROUNDS ARE IDENTICAL TO GROUND NO. 5 IN ITA NO. 429/MUM2008 FOR A.Y. 2003-0 4. VIDE ORDER OF EVEN DATE, WE HAVE ALREADY DECIDED THE ISSUE AND THE GRO UND RAISED BY THE ASSESSEE HAS BEEN DISMISSED. FOLLOWING THE SAME RATIO, THE G ROUNDS RAISED BY THE ASSESSEE IS DISMISSED. 3 ITA 427 /M/2008 MR. SACHIN TENDULKAR. 8. GROUND NO. 4 RELATES TO THE ORDER OF THE CIT(A) IN CONFIRMING THE DISALLOWANCE ` 17,600/- MADE BY THE A.O. ON ACCOUNT OF TELEPHONE EXPENSES OUT OF TOTAL EXPENDITURE OF ` 1,75,948/- CLAIMED BY THE ASSESSEE. 9. AFTER HEARING BOTH THE SIDES, WE FIND THE ABOVE GROUND IS IDENTICAL TO GROUND NO. 4 IN ITA NO. 429/MUM2008 FOR A.Y. 2003-0 4. VIDE ORDER OF EVEN DATE, WE HAVE ALREADY DECIDED THE ISSUE AND THE GRO UND RAISED BY THE ASSESSEE HAS BEEN DISMISSED. FOLLOWING THE SAME RATIO, THE G ROUND RAISED BY THE ASSESSEE IS DISMISSED. 10. GROUND NO. 6 RELATES TO INITIATION OF PENALTY P ROCEEDING U/S 271(1)(C) OF THE ACT. 11. AFTER HEARING BOTH THE SIDES, WE ARE OF THE OPI NION THAT THE ABOVE GROUND IS PRE-MATURE AT THIS JUNCTURE. ACCORDINGLY, THE SA ME IS DISMISSED. 12. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED ON 20.05.2011. SD/- SD/- (ASHA VIJAYARAGHAVAN) ( R.K. PANDA) JUDICIAL MEMBER ACCOUNT ANT MEMBER MUMBAI, DATED 20 TH MAY, 2011. RK 4 ITA 427 /M/2008 MR. SACHIN TENDULKAR. COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) -XIX, MUMBAI 4. THE CIT- CITYCONCERNED, MUMBAI 5. THE DR BENCH, G 6. MASTER FILE // TUE COPY// BY ORDER DY/ASSTT. REGISTRAR ITAT, MUMBAI 5 ITA 427 /M/2008 MR. SACHIN TENDULKAR. DATE INITIALS 1 DRAFT DICTATED ON 2.4.11, 12.5.11 SR. PS 2 DRAFT PLACED BEFORE THE AUTHOR 3.4.11, 12.5.11 SR. PS 3 DRAFT PLACED BEFORE THE SECOND MEMBER 4 APPROVED DRAFT COMES TO THE SR. PS SR. PS 5 KEPT FOR PRONOUNCEMENT ON SR. PS 6 FILE SENT TO THE BENCH CLERK SR. PS 7 DATE ON WHICH FILE GOES TO THE HEAD CLERK 8 DATE ON WHICH FILE GOES TO THE AR 9 DATE OF DISPATCH OF ORDER