DCIT CIR 3(3), MUMBAI V. TREND ELECTRONICS LTD, MUMBAI

ITA 5727/MUM/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 4095 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 6 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-04-2016
• Appeal Filed By: Department
• Bench Allotted: E
• Next Hearing Date: 17-06-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 19-09-2013
• Court: TRIBUNAL
• Department Lawyers: MANJUNATHA SWAMY
• Keywords: Earning of tax free income; Tax effect
• Section: 143(3); 14A; 115JB

Judgement Text

, , E , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES E, MUMBAI , , , BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER, AND SHRI ASHWANI TANEJA, ACCOUNTANT MEMBER ITA NO.5727/MUM/2013 ASSESSMENT YEAR: 2010-11 D CIT CIRCLE - 3(3), MUMBAI - / VS. M/S. TREND ELETRONICS LTD. 171-C, MITTAL COURT, NARIMAN POINT, MUMBAI-400 021 (REVENUE) (RESPONDENT) P.A. NO. AAACV5946R REVENUE BY SHRI MANJUNATHA SWAMY (DR) RESPONDENT BY SHRI BHUPENDRA KARKHANIS (AR) / DATE OF HEARING : 18/04/2016 / DATE OF ORDER: 27/04/2016 / O R D E R PER ASHWANI TANEJA (ACCOUNTANT MEMBER): THE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE AG AINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEAL S)-7, MUMBAI {(IN SHORT CIT(A)}, DATED 03.05.2013 FOR T HE TREND ELETRONICS LTD. 2 ASSESSMENT YEAR 2010-11, DECIDED AGAINST THE ASSESS MENT ORDER PASSED BY THE ASSESSING OFFICER (IN SHORT AO ) U/S 143(3) OF THE ACT, ON THE FOLLOWING GROUNDS: ' 1. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE CIT(A) WAS JUSTIFIED IN DELETI NG ADDITION OF RS.8,43,378/- TO THE BOOK PROFIT U/S 1 5JB OF THE ACT ON ACCOUNT OF PROVISION FOR WARRANTY EXPENS ES WITHOUT APPRECIATING THAT THE SAME BEING UNASCERTAINED LIABILITY WAS COVERED UNDER CLAUSE (C ) OF EXPLANATION 1 TO SECTION 115JB. 2. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CA SE AND IN LAW, THE CIT(A) WAS JUSTIFIED IN RESTRICTING THE DISALLOWANCE MADE U/S. 14A OF THE ACT TO RS.3,00,00 0/- AND GIVING A RELIEF OF RS.22,43,863/- WITHOUT APPRECIATING THE FACT THAT THE DISALLOWANCE WAS WOR KED OUT AS PER RULE 8D READ WITH SECTION 14A OF THE INC OME TAX ACT. 3. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CA SE AND IN LAW, THE CIT(A) WAS JUSTIFIED IN DELETING TH E ADJUSTMENT MADE TO BOOK PROFIT U/S 115JB OF THE ACT ON ACCOUNT OF EXPENSES RELATABLE TO EXEMPT INCOME U/S. L4A OF THE ACT. WITHOUT APPRECIATING THE FACT THAT THE ISSUE WAS SQUARELY COVERED BY THE JURISDICTIONAL ITAT'S ORDER IN THE CASE OF M/S RBK SHARE BROKING PVT. LTD (ITA NO.7546/MUM/2011 AND ITA NO.6678/MUM/2011). 4. THE APPELLANT PRAYS THAT THE ORDER OF CIT(A) ON THE ABOVE GROUND BE SET ASIDE AND THAT OF THE ASSESSING OFFICER BE RESTORED.' 2. DURING THE COURSE OF HEARING, ARGUMENTS WERE MADE B Y SHRI BHUPENDRA KARKHANIS, AUTHORISED REPRESENTATIVE (AR) ON BEHALF OF THE ASSESSEE AND BY SHRI MANJUNATHA SWAMY , DEPARTMENTAL REPRESENTATIVE (DR) ON BEHALF OF THE R EVENUE. 3. DURING THE COURSE OF HEARING BOTH THE PARTIES UNANI MOUSLY AGREED THAT TAX EFFECT INVOLVED IN THIS APPEAL IS L ESS THAN TREND ELETRONICS LTD. 3 RS.10,00,000/-. IN VIEW OF THESE FACTS, THE APPEAL FILED BY THE DEPARTMENT IS NOT MAINTAINABLE IN VIEW OF CIRCULAR NO.21/2015 DATED 10 TH DECEMBER, 2015 ISSUED BY THE CENRAT BOARD OF DIRECT TAXES AND THEREFORE, SAME IS DISMIS SED AS SUCH. THIS ORDER HAS NO BEARING ON THE MERITS OF TH E ISSUES INVOLVED IN THIS APPEAL. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMIS SED. ORDER PRONOUNCED IN THE OPEN COURT ON 18-04-2 016 THE DATE OF HEARING. SD/- (AMIT SHUKLA) SD/- (ASHWANI TANEJA) ! / JUDICIAL MEMBER ' ! / ACCOUNTANT MEMBER MUMBAI; # DATED : 18/04/2016 CTX? P.S/. .. #$%&'(')% / COPY OF THE ORDER FORWARDED TO : 1. % &' / THE APPELLANT 2. ()&' / THE RESPONDENT. 3. * * ( % ) / THE CIT, MUMBAI. 4. * * / CIT(A)- , MUMBAI 5. -. / (01 , * % 012 , / DR, ITAT, MUMBAI 6. / 34 5 / GUARD FILE. / BY ORDER, ) -% ( //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI