THE ACIT, Visakhapatnam V. Visakha Container Terminal Pvt.,Ltd., Visakhapatnam

ITA 544/VIZ/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 94098 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 9 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 17-10-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M N M NAIK SR
• Assessee Lawyers: ACCOUNTS

Judgement Text

ITA NO.544/VIZAG/2014 M/S. VISAKHA CONTAINER TERMINAL (P) LTD., VSKP IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM SMC BENCH, VISAKHAPATNAM BEFORE: SHRI B.R. BASKARAN, ACCOUNTANT MEMBER ITA NO. 544 /VIZAG/ 201 4 ASSESSMENT YEAR : 2010-11 ACIT CIRCLE-4(1) VISAKHAPATNAM VS. M/S. VISAKHA CONTAINER TERMINAL PVT. LTD. VISAKHAPATNAM (APPELLANT) (RESPONDENT) PAN NO.AABCV 4834B ASSESSEE BY: SHRI M.S. SIVANAND, GENERAL MANAGER (FINANCE & ACCOUNTS) REVENUE BY: SHRI M.N.M. NAIK, SR. AR DATE OF HEARING : 31.07.2015 DATE OF PRONOUNCEMENT : 31.07.2015 ORDER THE APPEAL FILED BY THE REVENUE IS DIRECTED AGAIN ST THE ORDER DATED 6.8.2014 PASSED BY LD. CIT(A), VISAKHAPATNAM AND IT RELATES TO THE ASSESSMENT YEAR 2010-11. THE GROUNDS OF APPEAL RAI SED BY THE REVENUE READ AS UNDER: 1. THE ORDER OF THE CIT(A) IS ERRONEOUS IN LAW. 2. THE LD. CIT(A) IN HIS ORDER FOR THE ASSESSMENT YEAR 2010-11, ERRED IN DIRECTING THE ASSESSING OFFICER TO ALLOW THE EXP ENDITURE OF MANAGEMENT FEE IN THE ASST. YEARS 2004-05 TO 2009-1 0, WHEN THE CIT(A) HAS NO JURISDICTION OVER THOSE ASST. YEARS ( SINCE NO APPEALS ARE BEFORE HIM). 3. THE DIRECTION OF THE LD. CIT(A) (FOR THE ASSESSMENT YEARS 2004-05 TO 2009-10) IS NOT VALID IN LAW. 4. ANY OTH4ER GROUND THAT MIGHT BE RAISED AT THE TIME OF HEARING. 2. THUS THE REVENUE IS AGGRIEVED BY THE FOLLOWING D IRECTION GIVEN BY THE LD. CIT(A): AS IT IS ALREADY HELD THAT THE CLAIM OF DEDUCTION O F RS.5,27,63,606/- IS NOT ALLOWABLE FOR A.Y. 2010-11, I CONSIDER IT IS REASONABLE TO DIRECT THE ASSESSING OFFICER TO CONSI DER THE ALLOWABILITY OF EXPENDITURE TOWARDS MANAGEMENT FEE IN THE A.YS 2004-05 TO 2009-10 IN ACCORDANCE WITH LAW. ITA NO.544/VIZAG/2014 M/S. VISAKHA CONTAINER TERMINAL (P) LTD., VSKP 2 3. THE LD. D.R. SUBMITTED THAT THE LD. CIT(A) HAS D IRECTED THE ASSESSING OFFICER TO ALLOW THE EXPENDITURE INCURRED ON MANAGEMENT/TECHNICAL FEE IN ASSESSMENT YEARS 2004-0 5 TO 2009-10 EVEN THOUGH APPEALS PERTAINING TO THOSE YEARS WERE NOT P ENDING BEFORE HIM. ACCORDINGLY, THE LD. D.R. SUBMITTED THAT THE LD. CI T(A) HAS EXCEEDED HIS JURISDICTION IN GIVING THIS DIRECTION. 4. I HEARD THE OFFICIAL APPEARING ON BEHALF OF THE A SSESSEE. I AM UNABLE TO AGREE WITH THE INTERPRETATION GIVEN BY TH E REVENUE IN RESPECT OF THE OBSERVATIONS MADE BY LD. CIT(A) WHICH IS EXTRAC TED ABOVE. A CAREFUL PERUSAL OF THE SAID OBSERVATIONS WOULD SHOW THAT TH E LD. CIT(A) HAS ONLY DIRECTED THE A.O. TO CONSIDER THE ALLOWABILITY OF E XPENDITURE TOWARDS MANAGEMENT FEE IN THE EARLIER YEARS IN ACCORDANCE W ITH LAW, MEANING THEREBY, THE ASSESSING OFFICER HAS NOT BEEN DIRECTE D TO ALLOW THE CLAIM IN THOSE YEARS. THE SAID DIRECTION, IN MY VIEW, NO WA Y WOULD AMOUNT TO GIVING A BINDING DIRECTION TO THE ASSESSING OFFICER . ACCORDINGLY, I DO NOT FIND ANY INFIRMITY IN THE ORDER PASSED BY LD. CIT(A ). 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. P RONOUNCED IN THE OPEN COURT ON 31 ST JULY, 2015 SD/- (B.R. BASKARAN) ACCOUNTANT MEMBER VISAKHAPATNAM, DATED 31 ST JULY, 2015 VG/SPS ITA NO.544/VIZAG/2014 M/S. VISAKHA CONTAINER TERMINAL (P) LTD., VSKP 3 COPY TO 1 THE ACIT, CIRCLE-4(1), VISAKHAPATNAM 2 M/S. VISAKHA CONTAINER TERMINAL PVT. LTD., OPP. T OWN HALL BEACH ROAD, NEAR FISHING HARBOUR, VISAKHAPATNAM 3 THE CIT, VISAKHAPATNAM 4 THE CIT(A), VISAKHAPATNAM 5 THE DR, ITAT, VISAKHAPATNAM. 6 GUARD FILE. BY ORDER ASST. REGISTRAR INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM