DCIT CC 3(1) CEN RG 3, MUMBAI V. WIND WORLD WIND FARMS (INDIA) LTD, MUMBAI

ITA 6835/MUM/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 1113 (ITAT-MUMBAI)
• Duration Of Justice: 5 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-05-2017
• Appeal Filed By: Department
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 21-11-2016
• Court: TRIBUNAL
• Department Lawyers: SUNIL JHA
• Assessee Lawyers: A K GHOSH
• Section: 143(3); 153A; 14A

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI BEFORE SHRI B.R. BASKARAN (AM) I.T.A. NO. 6835 /MUM/ 201 6 (ASSESSMENT YEAR 20 11 - 1 2 ) DCIT CC - 3(1) CENTRAL RANGE - 3 (1) ROOM NO. 1924 19 TH FLOOR AIR INDIA BUILDING NARIMAN POINT MUMBAI - 400021. VS. M/S.WI ND WORLD WIND FARMS ( INDIA ) LTD. A - 9, ENERCON TOWER VEERA DESAI ROAD VEERA INDUSTRIAL ESTATE, ANDHERI WEST MUMBAI - 400 053. ( APPELLANT ) ( RESPONDENT ) PAN NO . AAACE3530A ASSESSEE BY SHRI A.K. GHOSH DEPARTMENT BY SHRI SUNIL JHA DATE OF HEARING 4 . 5. 201 7 DATE OF PRONOUNCEMENT 4 .5 . 201 7 O R D E R THE APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER PASSED BY LD CIT(A) - 51, MUMBAI AND IT RELATES TO THE ASSESSMENT YEAR 2011 - 12. THE SOLITARY ISSUE URGED BY THE REVENUE IN THE YEAR UNDER CONSID ERATION IS WHETHER THE LD CIT(A) WAS JUSTIFIED IN HOLDING THAT THE ADDITION MADE BY THE ASSESSING OFFICER IS LIABLE TO BE DELETED AS THE SAME WAS NOT BASED ON ANY INCRIMINATING MATERIAL FOUND DURING THE COURSE OF SEARCH. 2. THE ASSESSEE IS ENGAGED IN T HE BUSINESS OF PRODUCTION OF ELECTRICITY THROUGH WIND MILLS. THE PRESENT ASSESSMENT WAS COMPLETED U/S 153A R.W.S. 143(3) OF THE ACT CONSEQUENT TO SEARCH OPERATIONS CONDUCTED ON 14.3.2013. HENCE THE YEAR UNDER CONSIDERATION WOULD FALL UNDER THE CATEGORY O F UNABATED ASSESSMENTS AS PER THE PROVISIONS OF SEC. 153A OF THE ACT. THE AO MADE DISALLOWANCE U/S 14A OF THE ACT IN THIS 153A ASSESSMENT AND THERE IS NO DISPUTE M/S. WIND WORLD WIND FARMS (INDIA) LTD. 2 THAT THE SAME IS NOT BASED ON ANY INCRIMINATING MATERIAL FOUND DURING THE COURSE OF SEARCH. THE LD CIT(A) HELD THAT THE ABOVE SAID ADDITION MADE IS NOT SUS TAINABLE, AS THE PRESENT ASSESS MENT YEAR IS UNABATED ASSESSMENT YEAR AND FURTHER NO INCRIMINATING MATERIAL WARRANTING THE IMPUGNED ADDITION WAS FOUND DURING THE COURSE OF SEARCH. THE LD CIT( A) FOLLOWED THE DECISION RENDERED BY HONBLE JURISDICTIONAL BOMBAY HIGH COURT IN THE CASE OF CONTINENTAL WAREHOUSING/ALL CARGO LOGISTICS LTD (374 ITR 645) IN THIS REGARD. ACCORDINGLY THE LD CIT(A) DELETED THE ADDITION MADE BY THE AO IN THE YEAR UNDER CONS IDERATION. AGGRIEVED, THE REVENUE HAS FILED THIS APPEAL. 3. I HEARD THE PARTIES AND PERUSED THE RECORD. THERE IS NO DISPUTE WITH REGARD TO THE FACT THAT THE REVENUE DID NOT UNEARTH ANY INCRIMINATING MATERIAL CONCERNING THE DISALLOWANCE MADE BY THE AO U/S 14A OF THE ACT IN BOTH THE YEARS. I FURTHER NOTICE THAT THE LD CIT(A) HAS FOLLOWED THE BINDING DECISION RENDERED BY THE HONBLE JURISDICTIONAL BOMBAY HIGH COURT. HENCE I DO NOT FIND ANY REASON TO INTERFERE WITH HIS ORDER. 4. IN THE RESULT, THE AP PEAL OF THE REVENUE IS DISMISSED. ORDER HAS BE EN PRONOUNCED IN THE COURT ON 4 . 5 . 201 7. SD/ - (B.R.BASKARAN) ACCOUNTANT MEMBER MUMBAI ; DATED : 4 / 5 / 20 1 7 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT 5. DR, ITAT, MUMBAI M/S. WIND WORLD WIND FARMS (INDIA) LTD. 3 6. GUARD FILE. BY ORDER, //TRUE COPY// ( DY./ASSTT. REGISTRAR) PS ITAT, MUMBAI