ACIT, CIR.-15(1)(2), MUMBAI V. C. U. INSPECTIONS (I) PVT. LTD., MUMBAI

ITA 4970/MUM/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 9966 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 7 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-03-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 03-08-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAURABH DESHPANDE
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH F, MU MBAI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI PAWAN SINGH, JUDICIAL MEMBER ITA NO.4970/MUM/2016 (ASSESSMENT YEAR- 2011-12) ITA NO.4971/MUM/2016 (ASSESSMENT YEAR- 2012-13) ACIT CIRCLE -15(1)(2) ROOM NO. 483A, 4 TH FLOOR, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI-20. VS. M/S C.U. INSPECTIONS (I) PVT. LTD. 8, SUMMER VILLE, 33 RD - 14 TH KHAR (WEST), MUMBAI-400052 PAN:AAACH6794F (APPELLANT) (RESPONDENT) REVENUE BY : SHRI SAURABH DESHPANDE (DR) ASSESSEE BY : NONE DATE OF HEARING : 12.03.2018 DATE OF PRONOUNCEMENT : 12 .03.2018 ORDER UNDER SECTION 254(1) OF INCOME TAX ACT PER PAWAN SINGH, JUDICIAL MEMBER: 1. THESE TWO APPEAL BY REVENUE UNDER SECTION 253 OF IN COME TAX ACT ARE DIRECTED AGAINST THE COMMON ORDER OF LD. COMMISSION ER OF INCOME-TAX (APPEALS)-24, MUMBAI, [FOR SHORT THE LD. CIT(A)] DA TED 20.05.2016 FOR ASSESSMENT YEARS 2011-2012 & 2012-2013. THE REVENUE HAS RAISED IDENTICAL GROUNDS OF APPEAL EXCEPT VARIATION OF FIG URES OF ADDITIONS ON ACCOUNT OF LICENSE FEES. THE LD CIT(A) PASSED COMMO N ORDER FOR BOTH THE YEARS, THUS, KEEPING IN VIEW THE COMMONALITY OF GRO UNDS OF APPEAL, BOTH THE APPEAL WAS HEARD TOGETHER AND IS DECIDED BY A C OMMON ORDER. FOR APPRECIATION OF FACTS, WE ARE REFERRING THE FACT FO R ASSESSMENT YEAR 2011- 12. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD. CIT(A) ERRED IN DELETING THE DISALLOWANCE OF RS. 5, 35,38,282/- ADDED AS ITA NO. 4970 & 4971/MUM/2016 - M/S C.U. INSPECTIONS (I) PVT. LTD. 2 LICENSE FEES/SERVICE CHARGES WHICH HAS ACCRUED TO T HE ASSESSEE, DESPITE THE CLEAR FINDING BY THE ASSESSING OFFICER THAT THE ASS ESSEE WAS CONSISTENTLY FOLLOWING THE MERCANTILE SYSTEM OF ACCOUNTING AND T HAT FOLLOWING THIS SYSTEM INCOME HAD ACCRUED TO THE ASSESSEE. 2. THE APPELLANT PRAYS THAT THE ORDER OF CIT(A) ON THE ABOVE GROUND BE SET ASIDE AND THAT OF THE ASSESSING OFFICER IS RESTORED . 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE-COMPA NY IS ENGAGED IN THE BUSINESS OF TECHNICAL TESTING & ANALYSIS SERVICES, FILED ITS RETURN OF INCOME FOR RELEVANT ASSESSMENT YEAR ON 24.11.2011 DECLARIN G TOTAL INCOME AT RS. 6,96,78,985/-. THE ASSESSMENT WAS COMPLETED ON 30.0 3.2015 UNDER SECTION 143(3) OF THE ACT. THE ASSESSING OFFICER ASSESSED T HE TOTAL INCOME OF ASSESSEE AT RS. 12,85,77,250/-. THE ASSESSING OFFIC ER BESIDES THE OTHER ADDITION AND DISALLOWANCES MADE THE ADDITION OF RS. 5,35,38,282/- ON ACCOUNT OF LICENSE FEES/SERVICE CHARGES BILLED BUT NOT ACCRUED DURING THE YEAR. ON APPEAL BEFORE THE LD. CIT(A), THE ADDITION WAS DELETED ON THE BASIS OF DECISION OF TRIBUNAL FOR ASSESSMENT YEARS 2004-0 5, 2006-07,2008- 09&2009-10 IN ITA NO.8043 & 347/M2011, 3525& 4697/M /2012 AND 4936/M/2012. THUS, AGGRIEVED BY THE ORDER OF LD. CI T(A), THE REVENUE HAS FILED THE PRESENT APPEAL BEFORE US RAISING THE GROU NDS OF APPEAL AS REFERRED AS ABOVE. 3. THE CASE CAME UP HEARING ON 12.03.2018. NONE APPEAR ED ON BEHALF OF ASSESSEE. PERUSAL OF IMPUGNED ORDER REVEALS THAT TH E LD. CIT(A) ALLOWED THE APPEAL OF ASSESSEE ON THE BASIS OF DECISION OF HON BLE JURISDICTIONAL HIGH COURT IN ASSESSEES OWN FOR ASSESSMENT YEAR 2006-07 & 2008-09 DECIDED VIDE ITA NO. 1914/2013 AND ITA NO. 1641/2013 DATED 04.08.2013. WE ITA NO. 4970 & 4971/MUM/2016 - M/S C.U. INSPECTIONS (I) PVT. LTD. 3 HAVE HEARD THE LD. DEPARTMENTAL REPRESENTATIVE (DR) FOR THE REVENUE AND FURTHER PERUSED THE ORDER OF AUTHORITIES BELOW WITH HIS HELP. THOUGH, THE LD. DR FOR THE REVENUE SUPPORTED THE ORDER OF ASSESSING OFFICER, HOWEVER, ON OUR SPECIFIC QUERIES RAISED REGARDING THE FURTHER A PPEAL AGAINST THE ORDER OF HONBLE JURISDICTIONAL HIGH COURT DATED 04.08.2013 IN ITA NO. 1914/2013 AND ITA NO. 1641/2013, THE LD. DR FOR THE REVENUE F AIRLY CONCEDED THAT THE ORDER OF HONBLE HIGH COURT HAS NOT BEEN REVERS ED SO FAR. 4. WE HAVE CONSIDERED THE SUBMISSION OF LD. DR FOR THE REVENUE AND FIND THAT SIMILAR DISALLOWANCE WAS MADE BY THE AO IN ASSESSME NT FOR ASSESSMENT YEAR 2006-07 AND 2008-09. HOWEVER, ON APPEAL THE TR IBUNAL THE ADDITIONS WERE DELETED. ON APPEAL BEFORE THE LD. HONBLE JURI SDICTIONAL HIGH COURT, THE ORDER OF TRIBUNAL WAS SUSTAINED IN ITA NO. 1914 OF 2013 AND ITA NO. 1641 OF 2013 DATED 04.08.2013. CONSIDERING THE DECI SION OF HONBLE JURISDICTIONAL HIGH COURT IN ASSESSEES OWN CASE, O N IDENTICAL GROUNDS, WE DO NOT FIND ANY MERIT IN THE GROUNDS OF APPEAL RAIS ED BY REVENUE. IN THE RESULT, GROUND OF APPEAL RAISED BY REVENUE IS DISMI SSED. 5. ITA NO. 4971/MUM/2016 FOR AY 2012-13. 6. THE REVENUE HAS RAISED THE IDENTICAL GROUND OF APPE AL AS RAISED IN APPEAL FOR ASSESSMENT YEAR 2011-12. CONSIDERING THE FACT T HAT WE HAVE ALREADY DISMISSED THE APPEAL OF THE REVENUE FOR ASSESSMENT YEAR 2011-12 ON THE BASIS OF DECISION OF HONBLE JURISDICTIONAL HIGH CO URT IN ASSESSEES OWN CASE ASSESSMENT YEAR 2006-07 AND 2008-09 IN ITA NO. 1914 OF 2013 AND ITA NO. 4970 & 4971/MUM/2016 - M/S C.U. INSPECTIONS (I) PVT. LTD. 4 ITA NO. 1641 OF 2013 DATED 04.08.2013. HENCE, THE A PPEAL FOR ASSESSMENT YEAR 2012-13 IS ALSO DISMISSED WITH SIMILAR OBSERVA TION. 7. IN THE RESULT, BOTH THE APPEAL FILED BY REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 12TH DAY OF MARCH 2018. SD/- SD/- ( SHAMIM YAHYA ) (PAWAN SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI; DATED 12 /03/2018 S.K.PS COPY OF THE ORDER FORWARDED TO : BY ORDER (ASSTT.REGISTRAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE C