DCIT CIR 3(1), MUMBAI V. DOME BELL ELCTRONICS INDIA P.LTD, MUMBAI

ITA 6494/MUM/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 92386 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-04-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 09-06-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 05-11-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AKHILENDRA P YADAV
• Section: 143(3); 115JB; 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH D, MUMBAI BEFORE SHRI B.R BASKARAN, ACCOUNTANT MEMBER AND SHRI AMIT SHUKLA, JUDICIAL MEMBER ITA NO. 6494/MUM/2013 ASSESSMENT YEAR: 2007-08 DCIT CIR - 3(1) R. NO. 607 AAYAKAR BHAVAN MUMBAI VS. DOME B ELL ELECTRONICS INDIA PVT. LTD. 171-C, MITTAL COURT, 17 TH FLOOR, NARIMAN POINT MUMBAI -21 PAN:AAACD 6266 G (APPELLANT) (RESPON DENT) ASSESSEE BY : SHRI BHUPENDRA KARKHANIS REVENUE BY : SHRI AKHILENDRA P. YADA V DATE OF HEARING : 26 .03.2015 DATE OF PRONOUNCEMENT : 17 .04.2015 O R D E R PER AMIT SHUKLA, JM: THIS APPEAL HAS BEEN PREFERRED BY THE REVENUE AGAI NST ORDER DATED 31.08.2013, PASSED BY THE LD.CIT(A)-6, MUMBAI FOR QUANTUM OF ASSESSMENT U/S 143(3) FOR THE A.Y. 2007-08 ON THE F OLLOWING GROUNDS:- WHETHER ON THE FACT AND IN THE CIRCUMSTANCES OF TH E CASE AND IN LAW, THE CIT(A) WAS JUSTIFIED IN DIRECTING THE AO T O RECTIFY THE MISTAKE MADE BY THE AUDITOR WHILE ADOPTING THE BOOK PROFIT U/S 115JB OF THE ACT WITHOUT APPRECIATING THE FACT THAT AO IS DUTY BOUND TO TAKE ONLY THE BOOK PROFIT AS PER ACCOUNTS PREPARE BY THE ASSESSEE IN ACCORDANCE WITH THE PROVISION OF SCHEDU LE VI OF THE COMPANIES ACT. THE LD. CIT(A) ERRED IN LAW IN DIRECTING AO TO RECT IFY THE BOOK PROFIT U/S 115JB OF THE ACT WITHOUT APPRECIATING TH E FACT THAT SUCH ITA NO. 6494/MUM/2013 ASSESSMENT YEAR: 2007-08 2 DISTURBINH OF THE BOOK PROFIT IS CONTRARY TO THE DE CISION OF HONBLE SUPREME COURT IN THE CASE OF M/S. APPOLLO TYRES VS. CIT (225 ITR 273). 2. FROM THE PERUSAL OF THE LD. CIT(A), ORDER ON THE ISSUE OF NOT ALLOWING THE DEDUCTION OF DIVIDEND INCOME EXEMPT U/ S 10(34), WHILE CALCULATION BOOK PROFITS U/S 115JB, THE LD. CIT(A) HAS GIVEN FOLLOWING FINDING:- THROUGH THIS GROUND OF APPEAL, THE APPELLANT HAS A GITATED AGAINST THE ACTION OF THE AO OF NOT ALLOWING DEDUCT ION OF DIVIDEND INCOME EXEMPT U/S 10(34) OF THE ACT IN CALCULATION OF BOOK PROFIT U/S 115JB OF THE ACT. IT IS SUBMITTED BY THE APPELLANT THAT THE DIVIDEND INCOME HAS ALREADY BEEN ALLOWED AS DEDUCTION FROM BOOK PROFIT VIDE ORDER U/S 154 OF THE ACT DATED 30.07.2010 PASS BY THE AO. HENCE, THIS GROUND OF APPEAL RAISED BY THE APPELLANT HAS BECOME INFRUCTUOUS AND REDUNDANT. IN VIEW OF THE ABOVE, THIS GROUND OF APPEAL IS DISM ISSED, BEING INFRUCTUOUS AND REDUNDANT. IF THE DIVIDEND INCOME HAS ALREADY BEEN ALLOWED AS DEDUCTION FROM THE BOOK PROFIT BY THE AO IN THE ORDER PASSED U/S 154 D ATED 30.07.2010, THEN WE ARE UNABLE TO APPRECIATE AS TO WHY THE REVE NUE HAS FILED THIS APPEAL. SINCE THE FINDING OF THE LD. CIT(A) HAS NOT BEEN REBUTTED BEFORE US, THEREFORE, WE HOLD THAT THERE IS NO MERITS IN T HE GROUNDS RAISED BY THE REVENUE. ACCORDINGLY, THE SAME IS DISMISSED. 3. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 17 TH DAY OF APRIL, 2015. SD/- SD/- (B.R. BASKARAN) (AMIT SHUKLA) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 17.04.2015 *SRIVASTAVA ITA NO. 6494/MUM/2013 ASSESSMENT YEAR: 2007-08 3 COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT(A) CONCERNED, MUMBAI THE DR D BENCH // TRUE COPY// BY ORDER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.