ACIT 11(1), MUMBAI V. ETC NETWORK LTD, MUMBAI

ITA 4674/MUM/2010

• Counselvise Citation: [2011] 119 COUNSELVISE.COM (IT) 6727 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-07-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2004-2005
• Appeal Filed On: 04-06-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJESH CHAMRIA
• Keywords: Revenue expenditure
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, F BENCH, MUMBAI. BEFORE SHRI D.K.AGARWAL, JUDICIAL MEMBER AND SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER I.T.A NO.4674/ MUM/2010 ASSESSMENT YEAR: 2004-05 ACIT-11(1) .. APPELLANT AAYAKAR BHAVAN, M.K. ROAD, MUMBAI. VS M/S. ETC NETWORK LTD., ,. RESPONDEN T 7/B, SHAH INDUSTRIAL ESTATE, OPP, VEERA DESAI ROAD, ANDHERI(W), MUMBAI. PA NO.AAACE 6549 B APPEARANCES: P.C.MAURYA, FOR THE APPELLANT RAJESH CHAMRIA, FOR THE RESPONDENT O R D E R PER PRAMOD KUMAR: 1. BY WAY OF THIS APPEAL, THE ASSESSING OFFICER H AS CHALLENGED CORRECTNESS OF CIT(A)S ORDER DATED 25 TH MARCH, 2010, IN THE MATTER OF ASSESSMENT UNDER SEC TION 143(3) R.W.S 263 OF THE INCOME TAX ACT, 1961, FOR THE ASSESSMENT YEAR 2004-05 ON THE FOLLOWING GROUNDS: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD CIT(A) ERRED IN DIRECTING TO ALLOW THE CLAIM OF INSURANCE AMOUNT WRITTEN OFF IGNORING THE FACT THAT THE SAME WAS RECEIVABLE AND CAPITAL R ECEIPT AND NOT A REVENUE EXPENDITURE 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, LD CIT(A) ERRED IN DIRECTING TO ALLOW THE EXPENSES CLAIMED BY THE A SSESSEE U/S.37 OF THE I.T.ACT 2 IGNORING THE FACT THAT THE SAME WAS INCURRED ON AMA LGAMATION AND HENCE THE SAME SHOULD BE ALLOWED U/S.35DD. 2. THE IMPUGNED ASSESSMENT IS FRAMED UNDER SECTION 143(3) R.W.S. 263 OF THE INCOME TAX ACT, 1961. HOWEVER, AS LEARNED REPRESEN TATIVES FAIRLY AGREE THAT THE RELATED REVISION ORDER UNDER SECTION 263, IS PARTL Y QUASHED, VIDE ORDER PASSED DATED 6 TH AUGUST, , 2010 BY A COORDINATE BENCH OF THIS TRIBU NAL TO THE EXTENT IMPUGNED ADDITIONS ARE CONCERNED. IN VIEW OF THE FACT THAT THE REVISION ORDER ITSELF DOES NOT SURVIVE ANY LONGER TO THE EXTENT THE RELEVANT ISSUE IN APPEAL BEFORE US, THE IMPUGNED ADDITIONS ALSO CEASES TO BE DEVOID OF ANY LEGALLY S USTAINABLE FOUNDATION. IN VIEW OF ABOVE, THE GRIEVANCE RAISED BY THE REVENUE IS WHOL LY ACADEMIC AND DOES NOT CALL FOR ANY ADJUDICATION. THE ISSUES RAISED IN THE APPEAL ARE THUS OF NO CONSEQUENCE, AND MUST BE DISMISSED AS INFRUCTUOUS. WE, ACCORDINGLY, DISMISS THE APPEAL AS INFRUCTUOUS. 3. IN THE RESULT, APPEAL IS DISMISSED. PRONOUNCED IN THE OPEN COURT ON 22 ND JULY, 2011 SD/- (D.K.AGARWAL) JUDICIAL MEMBER SD/- (PRAMOD KUMAR) ACCOUNTANT MEMBER MUMBAI, DATED 22 ND JULY, 2011 PARIDA COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. COMMISSIONER OF INCOME TAX (APPEALS),3, MUMBAI 4. COMMISSIONER OF INCOME TAX, 11 , MUMBAI 5. DEPARTMENTAL REPRESENTATIVE, BENCH F, MUMBAI //TRUE COPY// BY ORDER ASSTT. REGISTRAR, ITAT, MUMBAI