THE CRICKET CLUB OF INDIA LTD, MUMBAI V. DCIT 1(1), MUMBAI

ITA 6216/MUM/2010

• Counselvise Citation: 621619914 RSA 2010
• Duration Of Justice: 1 year(s) 3 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2006-2007
• Appeal Filed On: 16-08-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHANTAM BOSE
• Assessee Lawyers: SUNIL MEHTA
• Keywords: Earning of tax free income; Set aside
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, MUMBAI BEFORE SHRI D. MANMOHAN, VICE PRESIDENT, AND SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER ITA NO. 6216/MUM./2010 (ASSESSMENT YEAR : 2006-07 ) THE CRICKET CLUB OF INDIA LTD. BRABOURNE STATIUM DINSHAW VACHA ROAD MUMBAI 400 020 PAN AAATT4337R .. APPELLANT V/S DY. COMMISSIONER OF INCOME TAX CIRCLE-1(1), AAYAKAR BHAVAN 101, M.K. ROAD, MUMBAI 400 020 .... RESPONDENT ASSESSEE BY : MR. SUNIL MEHTA REVENUE BY : MR. SHANTAM BOSE DATE OF HEARING 29.11.2011 DATE OF ORDER 29.11.2011 O R D E R PER J. SUDHAKAR REDDY, A.M. THIS APPEAL PREFERRED BY THE ASSESSEE, IS DIRECTED AGAINST THE IMPUGNED ORDER DATED 15 TH FEBRUARY 2010, PASSED BY THE COMMISSIONER (APPEALS)-I MUMBAI, FOR ASSESSMENT YEAR 2006-07. 2. THE ASSESSEE, IN THIS CASE, HAS DECLARED INCOME UND ER THE HEADS INCOME FROM HOUSE PROPERTY , INCOME FROM OTHER SOURCES AND INCOME FROM LONG TERM CAPITAL GAIN . THE CRICKET CLUB OF INDIA ITA NO. 6216/MUM./2010 2 3. LEARNED COUNSEL, MR. SUNIL MEHTA, ON BEHALF OF THE ASSESSEE, CONTENDED THAT IT HAS NOT CLAIMED ANY EXPENDITURE U NDER ANY OF THE HEADS OF INCOME. HE ARGUES THAT UNDER THE HEAD COMPUTATION OF PROPERTY , STATUTORY DEDUCTION OF 30% IS CLAIMED ALONG WITH MUNICIPAL TA X AND WATER CHARGES. UNDER THE HEAD INCOME FROM OTHER SOURCES , HE SUBMITTED THAT INTEREST INCOME IS OFFERED ON GROSS BASIS AND, THUS, HE SUBM ITTED THAT WHEN THE ASSESSEE HAS NOT CLAIMED ANY EXPENDITURE UNDER ANY OF THE HEADS OF INCOME, WHICH ARE SUBJECT TO TAXATION, THE QUESTION OF DISA LLOWANCE UNDER SECTION 14A OF THE ACT DOES NOT ARISE. FOR THESE PROPOSITION, H E RELIED ON THE DECISION OF MUMBAI E BENCH OF THE TRIBUNAL IN ASSESSEES OWN CASE IN THE CRICKET CLUB OF INDIA LTD. V/S DCIT, (MUM.), IN ITA NO.4258/MUM. /2005, ORDER DATED 14 TH JULY 2008, AS WELL AS THE DECISION OF MUMBAI C BE NCH IN ASSESSEES OWN CASE IN ITA NO.6561/MUM./2005, FOR ASSESSMENT YEAR 2002-03, ORDER ADTED 8 TH APRIL 2008. 4. THE LEARNED DEPARTMENTAL REPRESENTATIVE, MR. SHANTA M BOSE, SR. DEPARTMENTAL REPRESENTATIVE, ON BEHALF OF THE REVEN UE, OPPOSED THE CONTENTIONS OF THE LEARNED COUNSEL FOR THE ASSESSEE BY SUBMITTING THAT THE HON'BLE JURISDICTIONAL HIGH COURT HAS HELD THAT CER TAIN EXPENDITURE WHICH IS REASONABLE SHOULD BE ALLOCATED AS THAT WHICH IS INC URRED FOR THE PURPOSE OF EARNING OF DIVIDEND. 5. AFTER HEARING RIVAL CONTENTIONS, WE FIND FROM THE S TATEMENT OF COMPUTATION OF INCOME FROM OTHER SOURCES THAT CERTA IN EXPENDITURES ARE CLAIMED. TO MENTION A FEW, ` 29,45,567, IS INCURRED AGAINST RECEIPTS FOR RETURFING AND RESTORATION CHARGES FROM SPORTS CLUB. SIMILARLY, EXPENDITURES ON SALE OF TICKETS ARE ` 11,57,666. SIMILARLY, CERTAIN OTHER EXPENSES ARE ACCOUNTED IN THE STATEMENT NO.2. THUS, THE STATEMEN T OF LEARNED COUNSEL THAT NO EXPENDITURE WHATSOEVER WAS CLAIMED AGAINST INCOME WHICH IS OFFERED TO TAX, IS FACTUALLY INCORRECT. AS THE HON'BLE JURI SDICTIONAL HIGH COURT LAID DOWN THAT REASONABLE EXPENDITURES SHOULD BE DISALLO WED AGAINST EXEMPT INCOME, WE SET ASIDE THE IMPUGNED ORDER PASSED BY T HE COMMISSIONER THE CRICKET CLUB OF INDIA ITA NO. 6216/MUM./2010 3 (APPEALS) AND RESTORE THE ISSUE BACK TO THE FILE OF ASSESSING OFFICER FOR DENOVO ADJUDICATION IN ACCORDANCE WITH LAW. 6. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED FOR STA TISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE OF HEARING I.E., 29 TH NOVEMBER 2011 SD/- D. MANMOHAN VICE PRESIDENT SD/- J. SUDHAKAR REDDY ACCOUNTANT MEMBER MUMBAI, DATED: 29 TH NOVEMBER 2011 COPY TO : (1) THE ASSESSEE; (2) THE RESPONDENT; (3) THE CIT(A), MUMBAI, CONCERNED; (4) THE CIT, MUMBAI CITY CONCERNED; (5) THE DR, C BENCH, ITAT, MUMBAI. TRUE COPY BY ORDER PRADEEP J. CHOWDHURY ASSISTANT REGISTRAR SR. PRIVATE SECRETARY ITAT, MUMBAI BENCHES, MUMBAI