JUMP NETWORKS LTD. (FORMERLY KNOWN AS IRIS MEDIAWORKS LTD.), MUMBAI V. DCIT, CC - 2(2), MUMBAI

ITA 6410/MUM/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 6788 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 11 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-09-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: F
• Assessment Year: 2011-2012
• Appeal Filed On: 07-10-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: YASHWANT BHASKAR LD
• Assessee Lawyers: NEERAJ MANGLA LD
• Keywords: Business income; Depreciation; Validity of assessment; Accommodation entries; Bogus loan; Unabsorbed depreciation
• Section: 143(3); 133A; 201; 64; 13; 153C; 132; 139

Judgement Text

ITA NOS.6410 - 6413/MUM/2019 M/S JUMP NETWORKS LIMITED ASSESSMENT YEARS: 2011 - 12 TO 2014 - 15 1 IN THE INCOME TAX APPELLATE TRIBUNAL F BENCH, MUMBAI , , BEFORE HONBLE SHRI AMARJIT SINGH, JM AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM (HEARING THROUGH VIDEO CONFERENCING MODE) ./ I.T.A. NO. 6410/MUM/2019 ( / ASSESSMENT YEAR : 2011 - 12 ) & ./ I.T.A. NO. 641 1 /MUM/2019 ( / ASSESSMENT YEAR : 2012 - 13 ) & ./ I.T.A. NO. 64 1 2 /MUM/2019 ( / ASSESSMENT YEAR : 2013 - 14 ) & ./ I.T.A. NO. 641 3 /MUM/2019 ( / ASSESSMENT YEAR : 2014 - 15 ) M/S. JUMP NETWORKS LTD. ( EARLIER KNOWN AS IRIS MEDIAWORKS LTD ) B - 302, WESTERN EDGE - II WESTERN EXPRESS HIGHWAY BORIVALI (E) , MUMBAI - 400 066 / VS. D CIT - CC - 2 (2) 8 TH FLOOR, PRATISHTHA BHAWAN M.K. ROAD MUMBAI - 400 002 ./ ./ PAN/GIR NO . AAACB - 4506 - D ( / APPELLANT ) : ( / RESPONDENT ) ASSESSEE BY : SHRI NEERAJ MANGLA - LD. AR REVENUE BY : SHRI YASHWANT BHASKAR - LD.CI T - DR / DATE OF HEARING : 14/07/2021 / DATE OF PRONOUNCEMENT : 08/09/2021 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1.1 AFORESAID APPEAL S BY ASSESSEE FOR ASSESSMENT YEAR S (AY) 201 1 - 12 TO 2 0 14 - 15 CONTEST SEPARATE ORDERS OF LEARNED COMMISSIONER OF ITA NOS.6410 - 6413/MUM/2019 M/S JUMP NETWORKS LIMITED ASSESSMENT YEARS: 2011 - 12 TO 2014 - 15 2 INCOME TAX (APPEALS) - 48, MUMBAI {CIT(A)} DATED 31/07/2019 ON COMMON GROUNDS OF APPEAL. THE IMPUGNED ORDER IS COMMON ORDER FOR AYS 2010 - 11 TO 2013 - 14 WHEREAS THE ORDER FOR AY 2014 - 15 HAS BEEN PASSED S EPARATELY. IT IS ADMITTED POSITION THAT ADJUDICATION IN ANY ONE YEAR SHALL SUBSTANTIALLY APPLY TO THE OTHER YEARS ALSO. 1. 2 THE GROUND RAISED IN APPEAL FOR AY 2011 - 12 READ AS UNDER: - 1. THAT THE LD. CIT (A) ERRED IN LAW AND UNDER THE CIRCUMSTANCES OF TH E FACT IN CONFIRMING THE ORDER OF THE ASSESSING OFFICER WHICH IS BAD IN LAW AND MUST BE QUASHED. 2. THAT THE LD. CIT(A) GROSSLY ERRED IN LAW IN NOT ADJUDICATING THE SUBSTANTIAL GROUND OF APPEAL CHALLENGING THE COMPUTATION OF COMMISSION INCOME ASSESSED BY THE LD. AO IN THE CASE OF THE ASSESSEE COMPANY. 3. THAT THE LD. CIT(A) GROSSLY ERRED IN LAW IN NOT ADJUDICATING AND ALLOWING TELESCOPING OF ASSESSED COMMISSION INCOME WITH THE INCOME RECORDED IN ITS BOOKS OF ACCOUNT DESPITE THE FACT THAT THE BUSINESS ACTI VITIES WERE ASSESSED AS NON - EXISTENT. 4. THAT THE LD. AO GROSSLY ERRED IN LAW IN MAKING ADDITION OF COMMISSION INCOME ONLY ON PRESUMPTIONS WITHOUT ANY INCRIMINATING MATERIAL BEING FOUND OR SEIZED EVIDENCING EARNING OF COMMISSION BY THE ASSESSEE COMPANY. 5 . THAT THE LD. AO GROSSLY ERRED IN MAKING ADDITION OF RS.1,47,27,600/ - AT A PRESUMED RATE OF COMMISSION OF 1% AGAINST THE ADMITTED RATE OF COMMISSION @ 0.30% DESPITE THE FACT THAT ALL OTHER FACTS NARRATED IN STATEMENT RELIED UPON HAVE BEEN ACCEPTED TO BE TRUE AND CORRECT. 6. THAT THE LD. AO GROSSLY ERRED IN LAW IN DISALLOWING THE LOSSES OF RS.54,98,814/ - INCURRED BY THE ASSESSEE COMPANY IN BUSINESS. 1.3 DURING HEARING, LD. AR URGED FOR ADJUDICATION OF GROUND NOS. 2, 3 & 6 WHEREAS OTHER GROUNDS HAVE NOT B EEN PRESSED. ACCORDINGLY, ALL THE OTHER GROUNDS STAND DISMISSE D AS BEING NOT PRESSED. 1.4 THE LD. AR, AT THE OUTSET, RELIED UPON THE ORDERS OF TRIBUNAL RENDERED IN CASE OF GROUP CONCERN NAMELY M/S EMPOWER INDIA LIMITED (ITA NOS.3205/MUM/2019 & O RS. FOR ASS ESSMENT YEAR 2011 - 12, ORDER DATED 23/10/2019) WHICH HAS SUBSEQUENTLY BEEN FOLLOWED IN I TA NO S .3646 TO 3651 /MUM/2019 ORDER DATED 18/12/2020 FOR ASSESSMENT YEARS 2008 - 09 TO 2010 - 11 & 2012 - 13 TO 2014 - 15 . THE ORDERS PASSED BY LEARNED FIRST APPELLATE AUTHORITY FOR ALL THESE YEARS, IN THE CASE OF M/S ITA NOS.6410 - 6413/MUM/2019 M/S JUMP NETWORKS LIMITED ASSESSMENT YEARS: 2011 - 12 TO 2014 - 15 3 EMPOWER INDIA LIMITED, HAVE ALSO BEEN PLACED ON RECORD TO DRAW SIMILARITIES . THE LD. AR HAS SOUGHT SIMILAR RELIEF UNDER THIS APPEAL AS GRANTED BY TRIBUNAL IN GROUP CONCERN . THE LD. CIT - DR , ON THE OTHER HAND , PLEADED FOR DISMISSAL OF APPEAL AND SUBMITTED THAT NO FURTHER RELIEF COULD BE GRANTED TO THE ASSESSEE. HOWEVER, NO DISTINCTION IN FACTS COULD BE POINTED OUT AND NOTHING COULD BE BROUGHT ON RECORD TO DEMONSTRATE THAT THE AFORESAID ORDERS PASSED BY THE TRIBUNAL IN T HE CASE OF GROUP CONCERN, ARE NOT APPLICABLE TO THE FACTS OF PRESENT APPEALS BEFORE US. 1.5 HAVING HEARD RIVAL SUBMISSIONS AND AFTER DUE CONSIDERATION OF MATERIAL ON RECORD INCLUDING THE CITED DECISIONS OF TRIBUNAL IN THE CASE OF GROUP CONCERN, OUR ADJUDIC ATION TO THE SUBJECT MATTER OF APPEAL WOULD BE AS GIVEN IN SUCCEEDING PARAGRAPHS. ASSESSMENT PROCEEDINGS 2 .1 THE MATERIAL FACTS ARE THAT THE ASSESSEE WAS EARLIER KNOWN AS M/S. IRIS MEDIAWORKS LIMITED . THE ASSESSEE IS ADMITTEDLY INTO THE BUSINESS OF PROVIDI NG ACCOMMODATION ENTRIES. IT BELONG S TO SHRI SHIRISH C. SHAH GROUP WHO WAS SUBJECTED TO SEARCH ACTION U/S 132 AS WELL AS SURVEY ACTION U/S 133A BY THE DEPARTMENT. ACCORDINGLY, AN ASSESSMENT WAS FRAMED AGAINST THE ASSESSEE FOR AY 2011 - 12 U/S 143(3) R.W.S. 1 53C ON 22/03/2016 . THE DETAILS OF RETURN S FILED BY THE ASSESSEE U/S 139 AND IN RESPONSE TO NOTICE U/S 153C F OR VARIOUS AYS WAS AS UNDER: - A.Y. DATE OF FILING RETURN U/S 139 RETURNED INCOME DATE OF FILING RETURN U/S 153C RETURNED INCOME 2008 - 09 29.09.2008 - 33,68,984/ - 16.01.2015 - 34,34,146/ - 2009 - 10 29.09.2009 - 78,28,431/ - 01.09.2015 - 81,05,940/ - 2010 - 11 16.10.2010 --- 02.09.2015 --- 2011 - 12 30.09.2011 - 62,43,621/ - 04.09.2015 - 54,98,814/ - 2012 - 13 27.03.2014 - 4,82,440/ - 04.09.2015 --- 2013 - 14 04.09.2015 --- 2014 - 15 30.09.2014 - 19,75,501/ - ITA NOS.6410 - 6413/MUM/2019 M/S JUMP NETWORKS LIMITED ASSESSMENT YEARS: 2011 - 12 TO 2014 - 15 4 IT IS EVIDENT THAT FOR THIS YEAR, THE ASSESSEE DECLARED BUSINESS LOSS OF RS.54.98 LACS IN THE RETURN FILED IN RESPONSE TO NOTICE U/S 153C . THE SET - OFF OF THIS LOSS WAS NOT ALLOWED BY LD. AO IN VIEW OF THE FACT TH AT THE ASSESSEE DID NOT CARRY OUT A N Y GENUINE BUSINESS ACTIVITIES . 2 .2 DURING ASSESSMENT PROCEEDINGS, IT TRANSPIRED THAT THERE WERE CIRCULAR SALE & PURCHASE TRANSACTIONS WITHIN THE GROUP COMPANIES INCLUDING TRANSACTIONS WITH M/S EMPOWER INDIA LTD. AND M/S A VANCE TECHNOLOGIES LTD. THE ASSESSEE ALSO ADVANCED BOGUS LOANS / SHARE CAPITAL BY WAY OF INVESTMENTS TO OTHER ENTITIES. T HE ASSESSEES TRANSACTIONS HAVE BEEN SUMMARIZED ON PAGE NOS. 9 AND 10 OF THE ASSESSMENT ORDER. THE LD. AO ESTIMATED COMMISSION INCOME OF 1% ON THESE TRANSACTIONS CARRIED OUT DURING THE YEAR WHICH WAS WORKED OUT AS FOLLOWS: - NEW INVESTMENT DURING THE YEAR RS.77 , 47 , 50 , 810 TOTAL SALES SHOWN DURING THE YEAR RS.69 , 80 , 08 , 789 TOTAL RS.147 , 27 , 59 , 599 1% THEREOF COMES TO RS.1 , 47 , 27 , 595 AC CORDINGLY, THE ASSESSMENT WAS FRAMED DETERMINING INCOME AT RS.147.27 LACS IN THE AFORESAID MANNER. 2.3 THE INCOME HAS BEEN ESTIMATED F OR ALL THE YEARS, IN THE SAME MANNER WHICH, FOR EASE OF REFERENCE, COULD BE TABULATED IN THE FOLLOWING MANNER: - A.Y. INV ESTMENT SALES TOTAL COMMISSION @ 1% 2011 - 12 77,47,50,810 69,80,08,789 1,47,27,59,599 1,47,27,596 2012 - 13 36,20,43,000 59,68,23,031 95,88,66,031 95,88,660 2013 - 14 - 99,57,72,833 99,57,72,833 99,57,728 2014 - 15 23,21,15,000 89,79,88,128 1,13,01,03,128 1,1 3,01,031 ACCOR DINGLY, THE ASSESSMENTS WERE FRAMED FOR VARIOUS YEARS DETERMINING THE INCOME IN TH E ABOVE MANNER. ITA NOS.6410 - 6413/MUM/2019 M/S JUMP NETWORKS LIMITED ASSESSMENT YEARS: 2011 - 12 TO 2014 - 15 5 APPELLATE PROCEEDINGS 3. THE ASSESSEE ASSAILED THE ACTION OF LD. AO BY WAY OF ELABORATE WRITTEN SUBMISSIONS WHICH HAVE ALREADY BEEN EXTRACTED I N THE IMPUGNED ORDER. THE LD. CIT(A) UPHELD THE VALIDITY OF ASSESSMENT PROCEEDINGS AND HELD THE ESTIMATION OF 1% AS MADE BY LD. AO TO BE VERY REASONABLE IN TERMS OF DECISION OF HON BLE SUPREME COURT IN COMMISSIONER OF SALES TAX V/S H.M.ESUFALI ALI H.M.ABDU LALI . SINCE THE ASSESSEE WAS NOT DOING ANY GENUINE BUSINESS, THE SET - OFF OF BUSINESS LOSE AS REFLECTED IN THE RETURN OF INCOME COULD NOT BE ALLOWED TO THE ASSESSEE AGAINST ASSESSED INCOME. FINALLY , THE APPEAL WAS DISMISSED AGAINST WHICH THE ASSESSEE I S IN FURTHER APPEAL BEFORE US. 4. OUR FINDINGS & ADJUDICATION BEFORE US, LD. AR HAS URGED GROUNDS NOS. 2,3 & 6 AND SEEK PARTIAL RELIEF AS GRANTED BY THE BENCH IN THE CASE OF GROUP CONCERN NAMELY M/S EMPOWER INDIA LIMITED. THE SAME IS DEALT WITH AS FOLLOWS: - 5. GROUND NO.2: EXCLUSION OF INTER - GROUP TRANSACTIONS OF SALES AND INVESTMENTS 5.1 IT IS PLEA OF LD. AR THAT WHILE ESTIMATING THE COMMISSION INCOME, THE INTER - GROUP CIRCULAR TRANSACTIONS MUST BE ELIMINATED SINCE NO COMMISSION WOULD BE EARNED BY THE ASSESSE E FROM THE GROUP CONCERN. IN OTHER WORDS, THE ASSESSEE SEEK S EXCLUSION OF COMMISSION INCOME ON CIRCULAR TRANSACTIONS OF SALES AND INVESTMENTS CARRIED OUT BY THE ASSESSEE WITH GROUP COMPANIES ON THE GROUND THAT NO PERSON COULD EARN OUT OF HIMSELF. WE FIND T HAT THIS SIMILAR PLEA HAS BEEN ACCEPTED AT THE LEVEL OF LEARNED FIRST APPELLATE AUTHORITY IN CASE OF M/S EMPOWER INDIA LTD WHICH IS EVIDENT FROM FOLLOWING OBSERVATIONS OF TRIBUNAL IN ITA NO.3646/MUM/2019 AS UNDER: - ITA NOS.6410 - 6413/MUM/2019 M/S JUMP NETWORKS LIMITED ASSESSMENT YEARS: 2011 - 12 TO 2014 - 15 6 4.2. WE FIND THAT ASSESSEE HAD PLEADED B EFORE THE LD. CIT(A) BY CONCEDING AND ACCEPTING THAT IT EARNED COMMISSION INCOME ON BOGUS ENTRIES BUT FURTHER PLEADED THAT THE SAID COMMISSION INCOME SHOULD HAVE BEEN RESTRICTED ONLY TO TRANSACTIONS WITH OUTSIDE COMPANIES AND NOT TO TRANSACTIONS WITH GROUP COMPANIES CONTROLLED BY SHRI SHIRISH C SHAH. THIS WAS ON THE LOGIC THAT NO ONE CAN EARN PROFIT FROM ONE SELF. THE LD. CIT(A) DULY APPRECIATED THIS CONTENTION OF THE ASSESSEE AND GAVE A CATEGORICAL FINDING THAT THE INTERNAL MOVEMENTS OF FUNDS WITHIN THE CO MPANIES CONTROLLED BY SHRI SHIRISH C SHAH / SHRI DEWANG MASTER WOULD BE FOR WINDOW DRESSING OR LAYERING OF MOVEMENT OF FUNDS AND WOULD NOT YIELD COMMISSION INCOME. ACCORDINGLY, HE HELD THAT THE COMPUTATION OF COMMISSION INCOME SHOULD BE RESTRICTED ONLY TO INVESTMENTS AND SALES TO OUTSIDE COMPANIES / PARTIES. HE ALSO OBSERVED THAT ASSESSEE HAS GIVEN DETAILS OF AMOUNTS OF INVESTMENTS AND SALES TO OUTSIDE COMPANIES IN HIS WRITTEN SUBMISSIONS WHICH WAS DIRECTED TO BE VERIFIED BY THE LD. AO AND COMPUTE COMMISSIO N INCOME ACCORDINGLY. THE LD. CIT(A) HOWEVER, UPHELD THE RATE OF COMMISSION AT 1% AS ADOPTED BY THE LD. AO. 5.2 WE FIND THAT LD. CIT(A) HAS NOT ADJUDICATED THIS ISSUE IN THE IMPUGNED ORDER. HOWEVER, THE FACTS AS WELL AS ISSUES ARE IDENTICAL AND THEREFORE , THERE IS NO REASON AS TO WHY THE SIMILAR BENEFIT IS NOT EXTENDED TO THIS ASSESSEE. THEREFORE, CONCURRING WITH THE SUBMISSIONS OF LD. AR, WE DIRECT LD. AO TO VERIFY THE SALES & INVESTMENTS MADE BY THE ASSESSEE TO GROUP COMPANIES AND EXCLUDE THE SAME WHILE COMPUTING THE COMMISSION INCOME. THE ASSESSEE HAS PLACED ON RECORD A CHART TO SUBMIT THE DETAILS OF INTER - GROUP TRANSACTIONS FOR VARIOUS YEARS WHICH ARE AS FOLLOWS: - A.Y. INTER - GROUP INVESTMENT INTER - GROUP SALES TOTAL COMMISSION @ 1% 2011 - 12 34,26,00,0 00 - 34,26,00,000 34,26,000 2012 - 13 36,20,43,000 55,01,59,109 91,22,02,109 91,22,021 2013 - 14 - 98,16,68,100 98,16,68,100 98,16,681 2014 - 15 23,21,15,000 89,18,60,262 112,39,75,262 1,12,39,075 5.3 RESPECTFULLY FOLLOWING THE DECISION OF TRIBUNAL AS AFORE SAID, LD. AO IS DIRECTED TO VERIFY THESE FIGURES AND EXCLUDE INTER - GROUP INVESTMENT AS WELL AS SALES WHILE ESTIMATING THE INCOME OF THE ASSESSEE. THIS GROUND, FOR ALL THE YEARS, STAND ALLOWED FOR STATISTICAL PURPOSES. ITA NOS.6410 - 6413/MUM/2019 M/S JUMP NETWORKS LIMITED ASSESSMENT YEARS: 2011 - 12 TO 2014 - 15 7 6. GROUND NO. 3 : BENEFIT OF TELESCOPIN G OF INCOME DECLARED IN THE BOOKS 6.1 THE LD. AR SUBMITTED THAT ASSESSEE ALONG WITH M/S EMPOWER INDIA LTD. W AS HELD TO BE ONE OF THE CONDUIT COMPANIES OPERATED AND MAINTAINED B Y SHRI SHIRISH C. SHAH. THE COMMISSION INCOME WAS ESTIMATED ON AGGREGATE OF TURN OVER AND NEW INVESTMENTS MADE DURING THE YEAR UNDER CONSIDERATION. THE LD. AR SUBMITTED THAT KEEPI NG IN VIEW THE NATURE OF TRANSACTIONS , THE BENEFIT O F TELESCOPING O F COMMISSION INCOME DECLARED IN THE BOOKS OF ACCOUNT SHO U LD BE ALLOWED AGAINST THE COMMISSI ON INCOME ASSESSED BY LD. AO. SIMILAR BENEFIT IS STATED TO HAVE BEEN EXTENDED BY THE TRIBUNAL IN I TA NO. 3646/MUM/2019 IN CASE OF M/S EMPOWER INDIA LTD. 6.2 THE LD. AR SUBMITTED THAT INCOME DECLARED IN THE BOOKS COMPRISES OF GROSS PROFIT ON SALES AND INTE REST INCOME ON LOANS AND ADVANCES WHICH HAS BEEN ASSESSED AS ACCOMMODATION ENTRIES BY LD. AO . THE INCOME DECLARED IN THE BOOKS IS STATED TO BE AS FOLLOWS : - AY INCOME AS PER BOOKS OF ACCOUNT GP OTHER INCOME TOTAL 2011 - 12 19,66,104 8,17,886 27,83,990 20 12 - 13 18,32,874 44,53,416 62,86,290 2013 - 14 38,80,189 39,70,622 78,50,811 2014 - 15 38,46,967 8,32,750 46,79,717 6.3 WE FIND THAT, IN THIS REGARD, FOLLOWING DIRECTIONS HAVE BEEN GIVEN BY TRIBUNAL IN ITA NO. 3646/MUM/2019 IN CASE OF M/S EMPOWER INDIA LTD. : - 4.8. WE FIND LOT OF FORCE IN THE AFORESAID ARGUMENT OF THE LD. AR AND IN VIEW OF THE DECISION OF THIS TRIBUNAL FOR A.Y.2011 - 12 WHERE THE BENEFIT OF TELESCOPING IS GRANTED, WE DIRECT THE LD. AO TO ALLOW TELESCOPING OF COMMISSION INCOME AGAINST INCOME DE CLARED IN THE BOOKS OF ACCOUNTS FOR ALL THE ASSESSMENT YEARS. ITA NOS.6410 - 6413/MUM/2019 M/S JUMP NETWORKS LIMITED ASSESSMENT YEARS: 2011 - 12 TO 2014 - 15 8 RESPECTFULLY FOLLOWING THE SAME, WE DIRECT LD. AO TO VERIFY THE CLAIM AND ALLOW BENEFIT OF TELESCOPING IN THE SIMILAR MANNER. THIS GROUND, FOR ALL THE YEARS, STAND ALLOWED FOR STATISTICAL PURPO SES. 7. GROUND NO. 6 : SET - OFF OF BUSINESS LOSS OF RS.54.98 LACS 7.1 THIS ISSUE ARISES ONLY IN AY 2011 - 12. IN THIS GROUND, THE ASSESSEE SEEKS SET - OFF OF BUSINESS LOSS OF RS.54.98 LACS AS REFLECTED IN THE RETURN OF INCOME. THE LD. AR SUBMITTED THAT THE RETU RNED LOSS COMPRISE - OFF OF UNABSORBED DEPRECIATION. FURTHER, ADMINISTRATIVE EXPENDITURE WAS ALSO DEBITED IN THE PROFIT & LOSS ACCOUNT AND CLAIMED AS EXPENDITURE. IT WAS SUBMITTED THAT LD. A O HAD ASSESSED COMMISSION INCOME IN THE HANDS OF SHRI SHIRISH C. SHA H ON THE BASIS OF INCRIMINATING MATERIAL FOUND AN D SEIZED DURING THE COURSE OF SEARCH ACTION. SHRI SHIRISH C. SHAH CLAIMED EXPENSES AGAINST THE COMMISSION WHICH HAVE BEEN DISALLOWED ON T HE PRETEXT THAT THE SAID EXPENSES HAVE ALREADY BEEN ALLOWED AS DEDUCTI ON IN THE COMPANIES OPERATED AND MAINTAINED BY HIM. THEREFORE, THE EXPENDITURE MAY BE ALLOWED HERE. 7.2 AFTER GOING THROUGH THE SUBMISSIONS, WE ARE OF THE CONSIDERED OPINION THAT THE THESE EXPENDITURE ARE STATED TO BE HAVE BEEN DISALLOWED IN THE HANDS OF S HRI SHIRISH C. SHAH ON THE GROUND THAT THE DEDUCTION OF THE SAME IN THE HANDS OF THE ENTITIES BEING OPERATED AND MAINTAINED BY HIM HAS ALREADY BEEN ALLOWED. HOWEVER, THE EXPENDITURE HAS BEEN DISALLOWED HERE ALSO. THEREFORE, LD. AO IS DIRECTED TO VERIFY THE EXPENDITURE AND ALLOW THE SAME. THE ASSESSEE IS DIRECTED TO FILE REQUISITE DETAILS AND DOCUMENTS. T HIS GROUND ARISES ONLY IN AY 2011 - 12 AND THE SAME IS ALLOWED FOR STATISTICAL PURPOSES. ITA NOS.6410 - 6413/MUM/2019 M/S JUMP NETWORKS LIMITED ASSESSMENT YEARS: 2011 - 12 TO 2014 - 15 9 8. ADDITIONAL GROUND IN AY 2014 - 15 8.1 THE LD. AR HAS SUBMITTED TH AT AMOUNT OF INCREASE IN INVESTMENT DURING THE YEAR HAS WRONGLY BEEN TAKEN BY LD. AO AS RS.2321.15 LACS ON WHICH COMMISSION OF RS.23.21 LACS HAS BEEN ESTIMATED. THE LD. AR PLACED ON RECORD FOLLOWING CHART IN SUPPORT OF THE PLEA THAT THERE WAS NO INCREASE I N INVESTMENT DURING THE YEAR: - AMOUNT AS ON 31/03/2014 AMOUNT AS ON 31/03/2013 DIFFERENCE NON - CURRENT INVESTMENTS 99,58,08,000/ - 76,36,93,000/ - 23,21,15,000/ - CURRENT INVESTMENTS 2,17,000/ - 32,60,15,000/ - ( - )32,57,98,000/ - 99,60,25,000/ - 1,08,97,08, 000/ - ( - )9,36,83,000/ - 8.2 WE FIND THAT THE PLEA RAISED BEFORE IS MATTER OF FACT AND VERIFICATION. THEREFORE, WE DIRECT LD. AO TO VERIFY THE INVESTMENTS AND RE - COMPUTE THE INCOME, IF REQUIRED. THIS GROUND ARISES ONLY IN AY 2014 - 15 AND THE SAME STANDS ALL OWED FOR STATISTICAL PURPOSES. 8.3 NO OTHER GROUNDS HAVE BEEN URGED IN THE APPEALS. CONCLUSION 9. THE APPEAL FOR ALL THE ASSESSMENT YEARS STAND S PARTLY ALLOWED IN TERMS OF OUR ABOVE ORDER. O RDER PR ONOUNCED ON 8 TH SEPTEMBER, 2021 SD/ - SD/ - ( AMARJIT SINGH ) (MANOJ KUMAR A GGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 09/09/2021 SR.PS, DHANANJAY ITA NOS.6410 - 6413/MUM/2019 M/S JUMP NETWORKS LIMITED ASSESSMENT YEARS: 2011 - 12 TO 2014 - 15 10 / 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 .