ASST CIT CEN CIR 29, MUMBAI V. SHAHRUKH KHAN, MUMBAI

ITA 7080/MUM/2011

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 8841 (ITAT-MUMBAI)
• Duration Of Justice: 11 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-09-2012
• Appeal Filed By: Department
• Bench Allotted: E
• Assessment Year: 2003-2004
• Appeal Filed On: 19-10-2011
• Court: TRIBUNAL
• Department Lawyers: GIRIJA DAYAL
• Assessee Lawyers: SHRIHIRO RAJ
• Section: 260A; 263; 63

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH E MUMBAI BEFORE SHRI D.K. AGARWAL, JUDICIAL MEMBER AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER ITA NO. 7080/MUM/2011 ASSESSMENT YEAR-2003-04 THE ACIT, CENT CIR-29, AAYKAR BHAVAN, MUMBAI-400 020 VS. MR. SHAHRUKH KHAN, MANNAT, BHABHA ROAD, BANDSTAND, BANDRA (W), MUMBAI-400 050 PAN-AAHPK3293L (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI GIRIJA DAYAL RESPONDENT BY: SHRIHIRO RAJ DATE OF HEARING :24.09.2012 DATE OF PRONOUNCEMENT: 26.09.2012 O R D E R PER N.K. BILLAIYA, AM: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF LD. CIT(A)- 40, MUMBAI DT. 2.8.2011 PERTAINING TO ASSESSMENT YE AR 2003-04. 2. THE ASSESSEE HAS RAISED FOLLOWING SUBSTANTIVE GR OUNDS OF APPEAL: A). WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN THE LAW, THE LD. CIT(A) WAS RIGHT IN ALLOWING T HE APPEAL OF THE ASSESSEE BASED ON THE ORDER OF THE IT AT TO QUASH THE ORDER OF CIT U/S. 263 WITHOUT APPRECIATIN G THE FACT THAT THE ORDER OF THE ITAT WAS NOT ACCEPTED BY THE DEPARTMENT AND THE DEPARTMENT HAS FILED APPEAL U/S. 260A WITH THE MUMBAI HIGH COURT. B) WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CA SE AND IN THE LAW, THE LD. CIT WAS RIGHT IN ALLOWING THE APPEAL OF THE ASSESSEE WITH REGARD TO THE DEDUCTION U/S. 8 0RR OF THE I.T. ACT. 3. AT THE VERY OUTSET, THE LD. COUNSEL FOR THE ASSE SSEE POINTED OUT THAT THE ISSUE IS COVERED BY THE DECISION OF THE ITAT IN ITA NO. 2649/MUM/2008 ITA NO. 7080/MUM/2011 2 PERTAINING TO ASSESSMENT YEAR 2003-04. THE LD. COU NSEL FURTHER DREW OUR ATTENTION TO PAGE-1 PARA 3.1 OF THE ORDER OF THE LD . CIT(A) WHICH IS REPRODUCED AS UNDER: THE BRIEF FACTS OF THE CASE IS THAT THE COMMISSION ER OF INCOME-TAX (CENTRAL)-II, MUMBAI VIDE HIS ORDER U/S. 2 63 DT. 18.3.2008 SET ASIDE THE ASSESSMENT ORDER U/S. 143(3 ) DT. 29.12.2005 ON THE ISSUE OF CLAIM ALLOWED U/S. 80RR. SUBSEQUENTLY, THE AO HAS PASSED THE IMPUGNED ORDER WHILE GIVING EFFECT TO THE ORDER U/S. 263 OF THE I.T. ACT. 4. A PERUSAL OF THE AFORESAID FINDING OF THE LD. CI T(A) SUGGESTS THAT THE ASSESSMENT HAS BEEN PASSED FOR GIVING EFFECT TO TH E ORDER U/S. 263 OF THE I.T. ACT. THE SAID ORDER PASSED U/S. 263 WAS MATTE R OF DISPUTE BEFORE THE ITAT IN ITA NO. 2649/M/08. WHILE DECIDING THE APPE AL, THE TRIBUNAL AT PAGE- 8, PARA-7 HAS HELD AS UNDER: WE RESPECTFULLY FOLLOW THE TRIBUNAL ORDER (SUPRA) AND HOLD THAT THE ORDER OF THE CIT U/S. 263 IS LEGALLY INVALID AN D IS TO BE QUASHED. IN SO FAR AS MERITS IS CONCERNED, THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE SAME IS COVERED IN FAVOUR OF THE ASSESSEE IN ASSESSEES OWN CASE IN ITA NO. 3894 OF 2002 AND 3658 OF 2002 FOR A.Y. 1998-99, ITA NO. 2535 OF 2004 FOR A.Y. 1999-2000, ITA NO. 2267 AND 2268 FOR A.Y. 1999 -00 AND 2000-01 AND ITA 4081 OF 2007 FOR A.Y. 2002-03. 5. AS THE TRIBUNAL HAS QUASHED THE ORDER OF CIT U/S . 263, ASSESSMENT GIVING EFFECT TO SUCH ORDER IS AUTOMATICALLY STANDS QUASHED. ACCORDINGLY, THE REVENUES APPEAL IS DISMISSED. 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED ON THIS 26 TH DAY OF SEPTEMBER, 2012 SD/- SD/- (D.K. AGARWAL) (N.K. BILLAIYA ) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DATED 26 TH SEPTEMBER, 2012 RJ ITA NO. 7080/MUM/2011 3 COPY TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT-CONCERNED 4. THE CIT(A)-CONCERNED 5. THE DR E BENCH TRUE COPY BY ORDER ASSTT. REGISTRAR, I.T.A.T, MUMBAI