ITO 8(2)(3), MUMBAI V. NARMINA TRADE FINVEST P.LTD, MUMBAI

ITA 6483/MUM/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 88661 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 4 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-03-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 01-11-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N PADMANABAN
• Assessee Lawyers: DHIRENDRA M SHAH
• Keywords: Reopening of assessment
• Section: 147

Judgement Text

M/S NARMINA TRADE FINVEST PVT LTD ITA 6483 /M/20 13 1 IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH B, MUMBAI , . . , BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI N K BILLAIYA , ACCOUNTANT MEMBER ITA NO. : 6 4 83 /MUM/20 13 (ASSESSMENT YEAR: 200 6 - 0 7 ) I NCOME TAX OFFICER - 8 ( 2 )(3), ROOM NO. 213/216A, 2 ND FLOOR, AAYAKAR BHAVAN, M K ROAD, MUMBAI - 400 020 VS M/S NARMINA TRADE FINVEST PVT LTD , PLOT NO. 123, ROAD NO. 17, MIDC, MAROL, ANDH ERI (EAST), MUMBAI - 400 020 .: PAN: AABCN 25 7 4 L (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI N PADMANABAN RESPONDENT BY : SHRI DHIRENDRA M SHAH /DATE OF HEARING : 2 4 - 03 - 201 5 / DATE OF PRONOUNCEMENT : 24 - 03 - 201 5 ORDER . . , : PER N K BILLAIYA , AM : TH IS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE CIT(A) - 17, MUMBAI DATED 28.08.2013 PERTAINING TO ASSESSMEN T YEAR 2006 - 07. 2. GRIEVANCE OF THE REVENUE IS TWOFOLD, FIRSTLY, THE REVENUE IS AGGRIEVED BY THE DECISION OF THE CIT(A) WHO HELD THAT THE REASSESSMENT DONE BY THE AO U/S 147 OF THE ACT IS INVALID AND SECONDLY , ON MERITS OF THE CASE, THE CIT(A) ERRED IN DE LETING THE ADDITION OF RS. 10.80 LAKHS ON ACCOUNT OF LOAN RECEIVED BY THE ASSESSEE FROM M/S ARCO ELECTRO TECHNOLOGIES P LTD. 3. LET US PROCEED WITH THE MERITS OF THE CASE. THE ISSUE IS WHETHER THE LOAN RECEIVED BY THE ASSESSEE COMPANY CAN BE TAXED M/S NARMINA TRADE FINVEST PVT LTD ITA 6483 /M/20 13 2 AS DEEM ED DIVIDEND U/S 2(22)(E) OF THE ACT WHEN THE ASSESSEE COMPANY IS NOT A REGISTERED SHAREHOLDER OF THE PAYER COMPANY. 4. WE FIND THAT THE FIRST APPELLATE AUTHORITY HAS DELETED THE ADDITION FOLLOWING THE RATIO LAID DOWN BY THE SPECIAL BENCH DECISION OF THE M UMBAI TRIBUNAL IN THE CASE OF ACIT VS BHAUMIK COLOUR PVT LTD, 27 SOT 270. WE FIND ON IDENTICAL FACTS, THE TRIBUNAL HAS DELETED THE ADDITION IN ITA NO. 8224/MUM/2010 FOR AY 2007 - 08 IN THE CASE OF THE ASSESSEE ITSELF. 5. AS NO DISTINGUISHING DECISION HAS BE EN BROUGHT TO OUR NOTICE, RESPECTFULLY FOLLOWING THE DECISION OF THE CO - ORDINATE BENCH ( SUPRA ) THE APPEAL FILED BY THE REVENUE ON MERITS IS DISMISSED AS WE HAVE CONFIRMED THE DELETION OF ADDITION MADE U/S 2(22)(E) OF THE ACT, THE QUESTION OF VALIDITY OF TH E REOPENING OF ASSESSMENT BECOMES ACADEMIC. 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 24 TH MARCH, 2015. SD/ - SD/ - ( ) ( . . ) ( VIJAY PAL RAO ) ( N K BILLAIYA ) JUDICIAL MEMBER ACCOUNTANT MEMB ER MUMBAI, DATE: 24 TH MARCH, 2015 / COPY TO: - 1) / THE APPELLANT. 2) / THE RESPONDENT. 3) THE CIT (A) - 17 , MUMBAI. 4) THE CIT - 8 , MUMBAI. 5) , , / THE D.R. B BENCH, MUMBAI. 6) COPY TO GUARD FILE. M/S NARMINA TRADE FINVEST PVT LTD ITA 6483 /M/20 13 3 / BY ORDER / / TRUE COPY / / / , DY. / ASSTT. REGISTRAR I.T.A.T., MUMBAI * . . *CHAVAN, SR.PS