DDIT (E) I (), MUMBAI V. MAHARASHTRA MARITIME BOARD, MUMBAI

ITA 5579/MUM/2014

• Counselvise Citation: [2018] 118 COUNSELVISE.COM (IT) 9031 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 3 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-12-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: I
• Assessment Year: 2006-2007
• Appeal Filed On: 04-09-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHAITANYA ANJARIA
• Keywords: Business income; Tax effect
• Section: 143(3); 40(a)(ia); 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, MUMBAI BEFORE SHRI SHAMIM YAHYA, AM AND SHRI SANDEEP GOSAIN , JM ITA NO. 5579/ MUM/ 2014 (ASSESSMENT YEAR: 2006 - 07 ) DDIT(E)I(1) R. NO. 504, PIRAMAL CHAMBERS, 5 TH FLOOR, PAREL, MUMBAI - 400 012 VS. M/S. MAHARASHTRA MARITIME BOARD INDIAN MERCHANT CHAMBERS 3 RD FLOOR, 14, RAMJIBHAI KAMANI MARG, BALLARD ESTATE, MUMBAI - 38 PAN/GIR NO. AAALM 0034 C ( APPELLANT ) : ( RESPONDENT ) APPELLANT BY : SHRI CHAITANYA ANJARIA RESPONDENT BY : SHRI MANISH JAIN DATE OF HEARING : 11.12.2018 DATE OF PRONOUNCEMENT : 12.12 .2018 O R D E R PER SHAMIM YAHYA, A. M.: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) - 1, MUMBAI (LD.CIT(A) FOR SHORT) DATED 12.06.2014 AND PERTAINS TO THE ASSESSMENT YEAR (A.Y.) 2006 - 07. 2. THE GROUNDS OF APPEAL READ AS UNDER: 1) ' WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN DIRECTING THE A.O. TO ALLOW THE EXEMPTION AS CLAIMED U/S .11 OF THE I.T. ACT, STATING THAT THERE IS NO REASON OR ANY OTHER ISSUE DISCUSSED IN ASSESSMENT ORDER FOR DENIAL OF EXEMPTION U/S. 11 OF THE I.T. ACT, EXCEPT THE FAULT OF THE ASSESSEE U/S. 40(A)(IA), WHEN THE SAID ISSUE OF ALLOWABILITY OF EXEMPTION U/S. 1 1 OF THE I.T. ACT WAS ALREADY DECIDED AGAINST THE ASSESSEE IN ORDER U/S. 143(3) EARLIER WHICH NOW MERGED WITH ORDER U/S. 143 R.W.S. 147.' 2) 'WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN DIRECTING THE A.O. TO ALL OW THE EXEMPTION AS CLAIMED U/S .11 OF THE I.T. ACT, STATING THAT THERE IS NO REASON OR ANY OTHER ISSUE DISCUSSED IN ASSESSMENT ORDER FOR DENIAL OF EXEMPTION U/S. 11 OF THE I.T ACT, EXCEPT THE FAULT OF THE ASSESSEE U/S. 40(A)(IA), WHEN THE SAID ISSUE WAS A LREADY DECIDED AGAINST THE ASSESSEE VIDE ORDER U/S. 143 R.W.S. 254 DATED 25/02/2014 WHILE GIVING EFFECT TO DIRECTION OF HON'BLE ITAT, WHICH IS PASSED MUCH PRIOR TO THIS IMPUGNED ORDER BY THE LD. CIT(A)'. 2 ITA NO. 5579/MUM/2014 3) WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE C ASE AND IN LAW, THE LD. CIT(A) ERRED IN NOT ACCEPTING APPLICABILITY AND IMPORT OF SECTION 40(A)(IA) IN THIS CASE WHEN AS PER THE ORDER U/S. 143(3) R.W.S. 254 DTD. 25.02.2014, THE INCOME OF THE ASSESSEE HAS BEEN ASSESSED AS BUSINESS INCOME AND INCOME FROM O THER SOURCES, THUS SECTION 40(A)(IA) DISALLOWANCE IS SQUARELY APPLICABLE TO SUCH INCOME'. 3 . THE REVENUE IS IN APPEAL AGAINST THE DELETION OF ADDITION BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS). 4 . AT THE OUTSET, IT TRANSPIRES THAT THE TAX EFFECT OF THE RELIEF GRANTED BY THE LD. CIT(A) IS BELOW RS.20 LACS, AS PER THE LIMIT FIXED BY THE CBDT FOR FILING THE APPEAL BEFORE THE ITAT VIDE CBDT CIRCULAR NO. 3/2018, F. NO. 279/MISC.142/2007 - ITJ (PT) DATED 11 TH JULY, 2018 ISSUED BY CENTRAL BOARD OF DIRECT TAXES, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENT OF INDIA. 5 . WE HAVE GONE THROUGH THE ORDER OF THE LD. C IT(A) AND THE GROUNDS OF APPEAL. IT HAS BEEN FOUND THAT THE TAX EFFECTS IN THE APPEAL IS LESS THAN RS. 20 LACS. 6 . THE LD. D R FAIRLY AGREED TO THE ABOVE PROPOSITION THAT TH IS APPEAL IS NOT MAINTAINABLE IN LIGHT OF THE ABOVE SAID CBDT CIRCULAR. HE ALSO DID NOT POINT THAT TH IS APPEAL FALL IN THE EXCEPTIONS CARVED OUT IN THE ABOVE SAID CIRCULA R. ACCORDINGLY, TH IS APPEAL FILED BY THE REVENUE STANDS DISMISSED. 7. IN THE RESULT, TH I S APPEAL BY THE REVENUE S TANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 1 2 . 1 2 . 2 0 1 8 S D / - S D / - ( SANDEEP GOSAIN ) (SHAMIM YAHYA) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED : 1 2 . 1 2 . 2 0 1 8 ROSHANI , SR. PS 3 ITA NO. 5579/MUM/2014 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT - CONCERNED 5. DR, ITAT, MUMBAI 6. GUARD FILE BY ORDER, (DY./ASSTT. REGISTRAR) ITAT, MUMBAI