ETERNAL DREAMS ENTERTAINMENT (I) P. LTD, MUMBAI V. ADDL CIT RG 19(2), MUMBAI

ITA 5762/MUM/2009

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 1330 (ITAT-MUMBAI)
• Duration Of Justice: 7 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-06-2010
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: I
• Assessment Year: 2003-2004
• Appeal Filed On: 29-10-2009
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: PRADEEP HEDAOO
• Keywords: Capital expenditure

Judgement Text

ITA NO. 5762/MUM/2009 ASSESSMENT YEAR : 2003-04 PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI I BENCH, MUMBAI BEFORE, SHRI N.V. VASUDEVAN (JUDICIAL MEMBER) AND SHRI PRAMOD KUMAR (ACCOUNTANT MEMBER) ITA NO. 5762/MUM/2009 ASSESSMENT YEAR 2003-04 DATE OF HEARING : 23.6.2010 M/S. ETERNAL DREAMS ENTERTAINMENT ...... APPELLANT INDIA PRIVATE LIMITED 23/603, MHADA, OSHIWARA LINK ROAD, ANDHERI (WEST MUMBAI 400 053 AABCE0552B VS. ADDL. COMMISSIONER OF INCOME TAX .. RESP ONDENT RANGE 8(1), MUMBAI APPELLANT BY : NONE RESPONDENT BY : SHRI PRADEEP HEDAOO O R D E R PER PRAMOD KUMAR: 1. BY WAY OF THIS APPEAL, THE ASSESSEE HAS CHALLENG ED CORRECTNESS OF ORDER DATED 12 TH AUGUST 2009. PASSED BY THE LEARNED COMMISSIONER (APPEALS)VII, MUMBAI, FOR ASSESSMENT YEAR 2003-04. ITA NO. 5762/MUM/2009 ASSESSMENT YEAR : 2003-04 PAGE 2 OF 4 2. THE GRIEVANCES RAISED BY THE ASSESSEE, ARE AS FOLLO WS:- 1. THE LD. CIT(A) ERRED IN UPHOLDING THE ORDER OF THE ASSESSING OFFICER IN DISALLOWING THE LICENSE FEES P AID OF RS.28,00,000/- BEING OPERATIONAL EXPENSES TREATING THE SAME AS ALLEGED CAPITAL EXPENDITURE U/S 32(2) OF TH E ACT WITHOUT APPRECIATING THE FACTS AND CIRCUMSTANCES OF THE CASE. 2. THE LD. CIT(A) ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN DISALLOWING THE CLAIM OF DEDUC TION ON ACCOUNT OF MARKETING AND RESEARCH EXPENSES AMOUNTIN G TO RS.94,290/-. THE DISALLOWANCE OF MARKETING AND RESE ARCH EXPENSES BEING UNJUSTIFIED MAY BE ALLOWED IN FULL. 3. THE LD. CIT(A) ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN DISALLOWING THE CLAIM OF DEDUC TION ON ACCOUNT OF ADVERTISEMENT EXPENSES AMOUNTING TO RS.6,44,221/-. THE DISALLOWANCE OF ADVERTISEMENT EX PENSES BEING UNJUSTIFIED MAY BE ALLOWED IN FULL. 3. WHEN THE CASE WAS CALLED FOR HEARING, NEITHER THE A SSESSEE NOR ANY OF ITS AUTHORIZED REPRESENTATIVE APPEARED BEFO RE US TO ARGUE THE APPEAL. EVEN THERE IS NO INTIMATION IN THE FILE REG ARDING NON- APPEARANCE OF THE ASSESSEE AND/OR ITS AUTHORIZED R EPRESENTATIVE. IT SEEMS THE ASSESSEE IS NO MORE INTERESTED TO PROSECU TE ITS APPEAL. HENCE, NO PURPOSE WOULD BE SERVED IN KEEPING THE MA TTER ALIVE. WE, THEREFORE, RESPECTFULLY FOLLOWING THE DECISION OF T HE TRIBUNAL, DELHI BENCHES, IN THE CASE OF M/S. MULTIPLAN INDIA PVT. L TD., 38 ITD 320 (DEL.), TREAT THIS APPEAL AS UN-ADMITTED AND HOLD THE SAME AS LIABLE TO BE DISMISSED IN LIMINE AS SUCH. ITA NO. 5762/MUM/2009 ASSESSMENT YEAR : 2003-04 PAGE 3 OF 4 4. IN THE RESULT, ASSESSEES APPEAL IS DISMISSED. PRON OUNCED IN THE OPEN COURT TODAY ON THIS 25 TH DAY OF JUNE 2010. SD/XX SD/XX (N.V. VASUDEVAN) (PRAMOD KUMAR) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI; 25 TH DAY OF JUNE 2010. COPY FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. DIRECTOR OF INCOME TAX (INTERNATIONAL TAXATION), MUMBAI 4. COMMISSIONER (APPEALS) , MUMBAI 5. DEPARTMENTAL REPRESENTATIVE, I BENCH, ITAT, MUMB AI 6. GUARD FILE TRUE COPY BY ORDER ASSISTANT REGISTRAR PRADEEP J. CHOWDHURY INCOME TAX APPELLATE TRIBUNAL SR. PRIVATE SECRETARY MUMBAI BENCHES, MUMBAI ITA NO. 5762/MUM/2009 ASSESSMENT YEAR : 2003-04 PAGE 4 OF 4 DATE INITIAL 1. DRAFT DICTATED ON 23.6.2010 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 23.6.2010 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 23.6.2010 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 23.6.2010 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 23.6.2010 SR.PS/PS 6. DATE OF PRONOUNCEMENT 25.6.2010 SR.PS 7. FILE SENT TO THE BENCH CLERK SR.PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER