DCIT 2(2), MUMBAI V. MAHARASHTRA SMALL SCALE INDUSTRIES DEVELOPMENT CORPORATION LTD, MUMBAI

ITA 7150/MUM/2013

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 2372 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 11 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-11-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 06-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Assessment record
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI B BENCH, MUMBAI BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER, AND SHRI R.C. SHARMA, ACCOUNTANT MEMBER. ITA. NO. 7150/MUM/2013 (ASSESSMENT YEAR:2008-09) OFFICE OF THE DCIT-2(2), R.NO.545, AAYAKAR BHAVAN, APPELLANT M.K. ROAD, MUMBAI-400 020 VS. M/S. MAHARASHTRA SMALL SCALE INDUSTRIES DEVELOPMENT CORPORATION LIMITED, KRUPANIDHI, 9, WALCHAND HIRACHAND MARG, RESPONDENT BALLARD ESTATE, MUMBAI-400 001. MUMBAI 400 039 PAN: AAACM3863A /BY APPELLANT : SHRI AIRIJU JAIKARAN, D.R. /BY RESPONDENT : NONE /DATE OF HEARING : 09.11.2015 /DATE OF PRONOUNCEMENT : 20.11.2015 2 ITA NO.7150/MUM/2013(A.Y: 2008-09) DCIT-2(2),VSMAHARASHTRA SMALL SCALE INDUSTRIES DEVE LOPMENT CORPORATION LIMITED / O R D E R PER SHAILENDRA KUMAR YADAV, J.M: THIS APPEAL HAS BEEN FILED BY REVENUE AGAINST THE O RDER OF COMMISSIONER OF INCOME-TAX (APPEALS)-5, MUMBAI, DAT ED 30.09.2013 FOR A.Y. 2008-09 ON FOLLOWING GROUNDS: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD. CIT(A) ERRED IN ACCEPTING THE ADDIT IONAL EVIDENCE WITHOUT ALLOWING THE SAME TO BE SCRUTINIZE D BY THE ASSESSING OFFICER AS REQUIRED UNDER RULE 46A(3) OF THE I.T. RULES, 1962. 2. FOR THESE AND OTHER GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING, THE DECISION OF THE CIT(A) MAY BE SET ASIDE AND THAT OF THE AO RESTORED. 2. AS NAME INDICATES THE ASSESSEE IS STATE PUBLIC S ECTOR UNDER THE NAME MAHARASHTRA SMALL SCALE INDUSTRIES DEVELOP MENT CORPORATION LIMITED. ASSESSEE HAS FILED ITS RETURN BASED UPON THE PROVISIONAL PROFIT AND LOSS ACCOUNT AND BALANCE SHE ET. WHILE COMPLETING THE ASSESSMENT U/S 143(3) THE ASSESSING OFFICER ADDED THE PROVISION FOR EXPENSES AMOUTING TO RS.2,0 0,00,000/- TO THE NET PROFIT OF RS.1,86,82,000/-. 3 ITA NO.7150/MUM/2013(A.Y: 2008-09) DCIT-2(2),VSMAHARASHTRA SMALL SCALE INDUSTRIES DEVE LOPMENT CORPORATION LIMITED 2.1 THE MATTER WAS CARRIED BEFORE THE FIRST APPELLA TE AUTHORITY WHERE HIS CONTENTIONS WERE RAISED AND HAVING CONSID ERED THE SAME CIT(A) GRANTED RELIEF TO THE ASSESSEE SAME HAS BEEN OPPOSED ON BEHALF OF REVENUE IN THE PRETEXT RAISED IN GROUN DS OF APPEAL. ON THE OTHER HAND, AUTHORIZED REPRESENTATIVE SUPPOR TED THE ORDER OF CIT(A). 2.2. WE FIND THAT THE TOTAL INCOME BEFORE THE CLAIM OF SET OFF OF BROUGHT FORWARD LOSSES WAS SHOWN AT RS.2,88,32,543/ -. TO THAT THE ASSESSEE HAS CLAIMED SET OFF OF BROUGHT FORWARD LOSSES AND REFLECTED ITS TAXABLE INCOME AT NIL AS PER THE PROV ISIONAL PROFIT & LOSS ACCOUNT THE ASSESSING OFFICER HAD DETERMINED T HE TOTAL INCOME AT RS.3,86,82,000/- (PRIOR TO ALLOWING SET O FF OF BUSINESS LOSS FOR ASSESSMENT YEAR 2002-03) IN FIRST APPEAL. HAVING CONSIDERED THE FACTS OF THE CASE, THE ASSESSING OFF ICER WAS DIRECTED BY CIT(A) TO ADOPT THE TOTAL INCOME (BEFOR E SET OFF OF ANY BROUGHT FORWARD LOSSES) AT RS.2,88,32,543/- AS PER AUDITED ACCOUNTS OF THE ASSESSEE, AS AGAINST THE TOTAL INCO ME OF RS.3,86,82,000/- ASSESSED U/S 143(3) BASED ON PROVI SIONAL PROFIT & LOSS ACCOUNT. THE BROUGHT FORWARD LOSSES, IF ANY, AS PER ASSESSMENT RECORDS, WERE DIRECTED TO BE SET OFF AS PER THE RELEVANT PROVISIONS OF THE IT ACT. THIS REASONED FACTUAL FIN DING OF CIT(A) NEED NOT INTERFERE FROM OUR SIDE SAME IS UPHELD. 4 ITA NO.7150/MUM/2013(A.Y: 2008-09) DCIT-2(2),VSMAHARASHTRA SMALL SCALE INDUSTRIES DEVE LOPMENT CORPORATION LIMITED 3. AS A RESULT, APPEAL OF REVENUE IS DISMISSED. PRONOUNCED IN THE OPEN COURT ON THIS THE 20TH DAY O F NOVEMBER, 2015. SD/- SD/- ( RAJESH KUMAR ) (SHAILENDRA KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBE R MUMBAI: DATED 20/11/2015 ASHWINI GAJAKOSH / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ! ( ) / THE CIT(A) 4. ! / CIT - CONCERNED 5. $%&''() , () , / DR, ITAT, MUMBAI 6. &./0 / GUARD FILE / BY ORDER, / (DY./ASSTT. REGISTRAR) !, / ITAT, MUMBAI