ITO 2(2)2, MUMBAI V. KALIMATI INVESTMENT COMPANY LTD, MUMBAI

ITA 5273/MUM/2012

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 101173 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 1 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-09-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 16-04-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 21-08-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAGHUVEER MADNAPPA
• Assessee Lawyers: RAJ A KAPADIA
• Section: 143(3); 263

Judgement Text

, ' INCOME TAX APPELLATE TRIBUNAL,MUMBAI- A,BENCH , , BEFORE S/SH. RAJENDRA,ACCOUNTANT MEMBER & SANJAY GARG, JUDICIAL MEMBER /.ITA NO.5273/MUM/2012, /ASSESSMENT YEAR-06-07 ACIT (OSD)-2(3), MUMBAI VS M/S KALIMATI INVESTMENT COMPANY LTD., BOMBAY HOUSE, 24, HOMI MODY STREET, FORT, MUMBAI-400001 PAN NO.AAACK 4330 N ( / ASSESSEE ) ( / RESPONDENT) /ASSESSEE BY : SH. RAJ A KAPADIA / REVENUE BY : SH. RAGHUVEER MADNAPPA / DATE OF HEARING :16 - 09 -2015 / DATE OF PRONOUNCEMENT : 23- 09-2015 , 1961 1961 1961 1961 254 254 254 254( (( (1 11 1) )) ) ORDER U/S.254(1)OF THE INCOME-TAX ACT,1961(ACT) PER RAJENDRA, AM - CHALLENGING THE ORDER DT.1-6-2012 OF CIT(A)-5, MUMB AI, THE ASSESSING OFFICER(AO), HAS RAISED FOLLOWING GROUNDS OF APPEAL : 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN DIRECTING THAT THE ORDER DOES NOT SURVIVE WITHOUT GOING INTO MERITS OF THE CASE, AS THE ORDER U/S.263 IS BEING DEFENDED BY THE DEPARTMENT IN HONBLE BOMB AY HIGH COURT. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW, THE LD. CIT(A) ERRED IN OVERLOOKING THE FACT THAT THE AO HAD TAXED THE INCO ME IN AN APPROPRIATE HEAD OF INCOME IN LINE WITH THE RATIO OF JUDGMENT IN THE CASE OF B AHADUR SINGH SAKLECHA VS. INCOME TAX OFFICER [(2006) 6 SOT 590 (JP)]. 3. FOR THESE AND OTHER GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING, THE DECISION OF THE CIT(A) MAY BE SET ASIDE AND THAT OF THE AO RESTORED . BRIEF HISTORY :- ASSESSEE-COMPANY,ENGAGED IN BUSINESS OF INVESTMENT IN SHARES, DEBENTURES ETC.,HAD FILED ITS RETURN OF INCOME ON 29-3-2006,DECLARING INCOME OF R S.9.18 LACS.THE AO COMPLETED THE ASSESSMENT U/S. 143(3) OF THE ACT ON 22-12-2008,DET ERMINING THE INCOME OF THE ASSESSEE AT RS. 16.74 LAKHS.THEREAFTER THE CIT PASSED AN ORDER UNDE R SECTION 263 OF THE ACT AND DIRECTED THE AO TO RE-DO THE ASSESSMENT.FOLLOWING THE REVISIONARY D IRECTION OF THE CIT THE AO PASSED AN ORDER U/S.143(3) R.W.S 263 OF THE ACT ON 27-9-2011 AND DE TERMINED THE INCOME OF THE ASSESSEE AT RS.1.63 CRORES. THE ASSESSEE CHALLENGED THE ORDER O F THE CIT, PASSED UNDER SECTION 263 OF THE ACT, BEFORE THE TRIBUNAL. VIDE ITS ORDER,DATED 30-4 -2012 (ITA NO.6687/MUM/2010-A.Y.2006- 07), HE TRIBUNAL SET ASIDE THE ORDER OF CIT DATED 2 2-7-2010.THE ORDER OF THE TRIBUNAL WAS CHALLENGED BEFORE THE HONBLE HIGH COURT OF BOMBAY. VIDE ITS JUDGMENT,DATED 12-11-2014 (INCOME TAX APPEAL NO.1309 OF 2012), THE HONBLE HI GH COURT DISMISSED THE APPEAL FILED BY THE DEPARTMENT. 2. MEANWHILE,THE ASSESSEE,AGGRIEVED BY THE ORDER OF AO ,FILED AN APPEAL BEFORE THE FIRST APPELLATE AUTHORITY(FAA)AND CHALLENGED THE ORDER OF AO DATED 27-9-2011 PASSED UNDER SECTION 143(3) ITA/5273/M/12-AY.06-07,KALIMATI 2 R.W.S.263 OF THE ACT.THE FAA,FOLLOWING THE ORDER OF THE TRIBUNAL ALLOWED THE APPEAL OF THE ASSESSEE. HE RELIED UPON THE CASE OF KS BHATIA (257 ITR 614). 3. DURING THE COURSE OF HEARING BEFORE US THE DR LEFT THE ISSUE TO THE DISCRETION OF THE BENCH. AUTHORISED REPRESENTATIVE (AR) STATED THAT AFTER TH E ORDER OF THE HONBLE JURISDICTIONAL HIGH COURT THE ISSUE HAS ATTAINED FINALITY.WE HAVE HEARD THE RIVAL SUBMISSION AND PERUSED THE MATERIAL BEFORE US. WE ARE OF THE OPINION THAT AFTER THE ORD ER OF THE HONBLE BOMBAY HIGH COURT, THERE IS NO NEED TO DISTURB THE ORDER OF FAA.CONFIRMING HIS ORDER AND RESPECTFULLY THE JUDGMENT OF THE HONBLE HIGH COURT, WE DECIDE THE EFFECTIVE GROUND OF APPEAL AGAINST THE AO. AS A RESULT, APPEAL FILED BY THE AO STANDS DISMISSED. . ORDER PRONOUNCED IN THE OPEN COURT ON 23 RD SEPTEMBER,2015. 23 RD ,2015 SD/- SD/- ( / SANJAY GARG) ( / RAJENDRA) / JUDICIAL MEMBER / ACCOUNTANT MEMBER /MUMBAI, /DATE: 23.09.2015 . . . .. . JV.SR.PS. / COPY OF THE ORDER FORWARDED TO : 1. APPELLANT / 2. RESPONDENT / 3. THE CONCERNED CIT(A)/ , 4. THE CONCERNED CIT / 5. DR BENCH, ITAT, MUMBAI / , , . . . 6. GUARD FILE/ //TRUE COPY// / BY ORDER, / DY./ASST. REGISTRAR , /ITAT, MUMBAI.