DCIT 1(3)(2), MUMBAI V. THE WODEHOUSE GYMKHANA LTD, MUMBAI

ITA 433/MUM/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 3847 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-08-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 12-07-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 19-01-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JEEVRAJ P JAIN
• Assessee Lawyers: VIVEK PERAMPURNA
• Keywords: Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL G, BENCH MUM BAI , , , BEFORE SHRI RAJENDRA, AM AND SHRI RAM LAL NEGI, JM ./ ITA NO.433/MUM/2015 ( / ASSESSMENT YEAR: 2010-11) THE DY. CIT- 1(3)(2), ROOM NO. 564, 5 TH FLOOR, AAYAKAR BHAVAN, M.K.ROAD, MUMBAI- 400 020. VS. M/S. THE WODEHOUSE GYMKHANA LTD, 182, MAHARSHI KARVE ROAD, COLABA, MUMBAI- 400 021. ./ ./ PAN/GIR NO. : AAACT4146R ( / APPELLANT ) .. ( !' / RESPONDENT ) /REVENUE BY : SHRI. JEEVRAJ P. JAIN #$% /ASSESSEE BY : SHRI. VIVEK PERAMPURNA & ' ( %) / DATE OF HEARING : 02/08/2016 *+,- ( %) / DATE OF PRONOUNCEMENT : 02/08/2016 !' / O R D E R PER RAM LAL NEGI, JM THIS APPEAL HAS BEEN FILED BY THE REVENUE A GAINST ORDER DATED 28/10/2014 PASSED BY THE LD. CIT (APPEALS)-2, MUMBA I FOR THE ASSESSMENT YEAR 2010-11. 2. THE REVENUE HAS CHALLENGED THE IMPUGNED ORDER ON THE FOLLOWING EFFECTIVE GROUNDS:-. 2 ITA NO 433/MUM/2015 ASSESSMENT YEAR: 2010-11 (I) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) WAS JUSTIFIED IN ALLOWING CARRY FORWARD OF LOSSES CLAIMED BY ASSESSEE IGNORING THE FACT THAT UNDER TH E PRINCIPLE OF MUTUALITY FOLLOWED BY THE ASSESSEE FOR CLAIMING REC EIPTS EXEMPT FROM TAX THERE CAN BE NO INCOME CHARGEABLE TO TAX AND C ONSEQUENTLY NO LOSS ASSESSABLE WHICH CAN LEGALLY BE ALLOWED TO BE CARRIED FORWARD ? (II) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT (A) WAS JUSTIFIED IN ALLOWING CARR Y FORWARD OF LOSSES CLAIMED BY ASSESSEE IGNORING THE FACT FOR AN ORGANI ZATION GOVERNED BY MUTUALITY THERE ARE NO PROFITS OR LOSSES BUT ONL Y RECEIPTS AND PAYMENTS AND, ANY SURPLUS OF EXPENSES OVER RECEIPTS IS ONLY A DEFICIT AND NOT LOSSES WHICH, IF SO CLAIMED, WOULD AMOUNT TO AN ACCOUNTING CAMOUFLAGE ONLY. 3. AT THE OUTSET, THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE TAX EFFECT IN THIS CASE IS BELOW RS. 10,00,000/- HENCE, AS PER THE CBDT CIRCULAR NO. 21 OF 2015, DATED 10/12/2015, THE PRESENT APPEAL IS NO T MAINTAINABLE. 4. THE LD. DR FAIRLY ADMITTED THAT THE TAX EFFECT I N DEPARTMENTS APPEAL IS BELOW RS. 10 LAKHS, WE FIND THAT THE ISSUE RAISED I N APPEAL DOES NOT FALL UNDER ANY OF THE EXCEPTIONS SPECIFIED IN PARA 8 OF THE CI RCULAR. SINCE, IT HAS BEEN SPECIFICALLY CLARIFIED IN THE CIRCULAR AFORESAID TH AT THE INSTRUCTION WILL APPLY RETROSPECTIVELY TO ALL THE PENDING APPEALS; THE PRE SENT APPEAL FILED BY THE REVENUE IS NOT MAINTAINABLE. WE, THEREFORE, DISMIS S THE SAME IN LIMINE . ORDER PRONOUNCED IN THE OPEN COURT ON 2 ND AUGUST, 2016 3 ITA NO 433/MUM/2015 ASSESSMENT YEAR: 2010-11 SD/- SD/- ( RAJENDRA ) ( RAM LAL NEGI ) ACCOUNTANT MEMBER JUDICIAL MEMBER & .' MUMBAI; / DATED: 02/08/2016 !'#$%&'&$ / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. !' / THE RESPONDENT. 3. & 1% ( ) / THE CIT(A)- 4. & 1% / CIT 5. 45 !%6# , ) 6#- , & .' / DR, ITAT, MUMBAI 6. 7 8' / GUARD FILE. !' / BY ORDER, '4% !% //TRUE COPY// ()*+ (DY./ASSTT. REGISTRAR) , & .' / ITAT, MUMBAI PRAMILA