NAVI MUMBAI SEZ PVT. LTD, MUMBAI V. ACIT (OSD) RG -7, MUMBAI

ITA 4940/MUM/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 0769 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 9 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-05-2017
• Appeal Filed By: Assessee
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 28-07-2014
• Court: TRIBUNAL
• Department Lawyers: RAMESH JAIN
• Section: 143(3); 2

Judgement Text

' IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH B , MUMBAI BEFORE SHRI C.N. PRASAD, JUDICIAL MEMBER AND SHRI RAMIT KOCHAR , ACCOUNTANT MEMBER ITA NO. 4 9 40 /MUM/201 4 , (A.Y : 20 06 - 07 ) M/S NAVI MUMBAI SEZ PRIVATE LTD. 1 ST FLOOR, JAI CENTRE, 34 P.D.MELLO ROAD OPP. RED GATE MASJID , MUMBAI 400 0 0 9 PAN : AA A C N0042N VS. A CIT (OSD) RANGE - 7 AAYAKAR BHAVAN GROUND FLOOR MUMBAI 400 020 ITA NO. 5129 /MUM/201 4 (A.Y : 20 06 - 07 ) DCIT - 7(1) ROOM NO.622 AAYAKAR BHAVAN M.K.ROAD, CHURCH GATE MUMBAI 400 020 VS. M/S NAVI MUMBAI SEZ PRIVATE LTD. 1 ST FLOOR, JAI CENTRE, 34 P.D.MELLO ROAD OPP. RED GATE MASJID , MUMBAI 400 009 PAN : AA ACN0042N ( / APPELLANT) ( / RESPONDENT) / ASSESSEE BY : SHRI JEEVANLAL LAVIDIYA / RE VENUE BY : SHRI RAMESH JAIN / DATE OF HEARING : 8.5. 2017 / DATE OF PRONOUNCEMENT : 8 . 5 . 2017 / O R D E R P ER C.N.PRASAD (JM) TH ESE APPEAL S ARE FILED BY THE ASSESSEE AND REVENUE AGAINST THE ORDER OF THE LD. CIT (APPEALS) - 13, MUMBAI DATED 16.5.2014 FOR THE ASSESSMENT YEAR 2006 - 07 ARISING OUT OF THE ORDER PASSED U/S 143(3) R.W.S 263 OF THE ACT. 2 ITA NO S . 4 9 40 & 5129 /MUM/201 4 (A.Y.20 06 - 07 ) M/S NAVI MUMBAI SEZ PRIVATE LTD. 2. AT THE OUTSET, THE LD. COUNSEL FOR THE ASSESSEE SUBMITS THAT THE ISSUES IN BOTH THESE APPEALS ARISE OUT OF THE CONSEQUENTIAL ASSESSMENT ORDER PASSED U/S 143(3) GIVING EFFECT TO THE ORDER OF THE LD. CIT PASSED U/S 263 OF THE ACT. THE LD. COUNSEL FOR THE ASSESSEE SUBMITS THAT THE APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER PASSED BY THE LD. CIT U/S 263 HAS BE EN ALLOWED BY THE TRIBUNAL IN ITA NO.4425/MUM/2011 DATED 9.3.2017. THE LD. COUNSEL FOR THE ASSESSEE INVITING OUR ATTENTION TO PARA 9 OF THE TRIBUNALS ORDER SUBMITS THAT THE ORDER PASSED BY THE LD. CIT U/S 263 HAS BEEN QUASHED AND THERE FORE CONSEQUENTIAL ASSESSMENTS MADE U/S 143(3) R.W.S 263 WILL NOT SURVIVE. HE SUBMITS THAT THE PRESENT APPEALS FILED BY THE ASSESSEE AND THE REVENUE BECOMES INFRUCTUOUS IN VIEW OF THE TRIBUNALS ORDER QUASHING THE 263 PROCEEDINGS. 3. WE HAVE PERUSED THE ORDER OF THE COO RDINATE BENCH IN ITA NO.4425/MUM/2011 DATED 9.3.2017. IN PARA 9 OF THE ORDER, THE TRIBUNAL QUASHED THE REVISION ORDER PASSED U/S 263 OF THE ACT OBSERVING AS UNDER : 9. WE FIND FROM THE ABOVE FACTS THAT THE CIT HAS GIVEN DIRECTIONS MERELY TO VERITY THE EXP ENSES CLAIM U/S 57(III) OF THE ACT IN THE COMPUTATION OF INCOME BY THE ASSESSEE AND THE SAME HAVE BEEN EXPLAINED EARLIER ALSO. WE ALSO FIND THAT ISSUE OF TAXING OF INTEREST EARNED ON DEPOSITS UNDER THE HEAD INCOME FROM OTHER SOURCE AND GRANTING OF DEDUCTIO N FOR INTEREST PAID ON BORROWED FUNDS UTILIZED TO EARN SUCH INTEREST ON DEPOSITS HAD BEEN DULY CONSIDERED BY THE AO WHILE COMPLETING ASSESSMENT U/S 143(3) OF THE ACT. WE FIND THAT THE AO HAD EXAMINED THIS ISSUE AND THE FACTS OF THE CASE DURING ASSESSMENT P ROCEEDINGS AND AS SUCH THE CIT HAS NO POWER TO DIRECT THE AO TO REEXAMINE THE SAME BY PASSING A REVISION ORDER U/S 263 OF THE ACT MERELY BECAUSE CTT(A) HOLDS A DIFFERENT VIEW FROM THE VIEW TAKEN BY THE AO. HENCE, WE QUASH THE REVISION PROCEEDINGS PASSED U/ S 263 OF THE ACT AND ALLOW THE APPEAL OF THE ASSESSEE. 3 ITA NO S . 4 9 40 & 5129 /MUM/201 4 (A.Y.20 06 - 07 ) M/S NAVI MUMBAI SEZ PRIVATE LTD. SINCE THE ORDER PASSED U/S 263 BY THE LD.CIT HAS BEEN QUASHED, THE CONSEQUENTIAL ASSESSMENT ORDER PASSED BY THE ASSESSING OFFICER U/S 143(3) R.W.S 263 WILL NOT SURVIVE. CONSEQUENTLY THE PRESENT APP EALS ARISING OUT OF THE CONSEQUENTIAL ASSESSMENT ORDER PASSED U/S143(3) R.W.S.263 WILL NOT SURVIVE. HENCE BOTH THE APPEALS ARE DISMISSED AS INFRUCTUOUS. 7 . IN THE RESULT, APPEAL S OF THE ASSESSEE AND REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 8 TH DAY OF MAY 2017 . SD/ - SD/ - ( RAMIT KOCHAR ) ( C.N.PRASAD ) / / ACCOUNTANT MEMBER JUDICIAL MEMBER / MUMBAI; / DATED 8 . 5 . 2017 LR, SPS 4 ITA NO S . 4 9 40 & 5129 /MUM/201 4 (A.Y.20 06 - 07 ) M/S NAVI MUMBAI SEZ PRIVATE LTD. / COPY OF THE ORDER FORWARDED TO : / BY ORDER, (ASSTT. REGISTRAR) , / ITAT, MUM 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A), MUMBAI. 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE. // TRUE COPY / /