DCIT 3(3)(2), MUMBAI V. VIDEOCON REALTY & INFRASTRUCTURE LTD, MUMBAI

ITA 7401/MUM/2016

AI Insights

The case involves appeals by the revenue against the order of the learned Commissioner of Income Tax (Appeals)-8, which pertained to the Assessment Years 2012-13 and 2016-17. The assessee, Videocon Realty & Infrastructures Ltd., a company engaged in real estate development, had filed returns declaring losses, which were scrutinized and assessed by the AO under sections 143(3) and 115JB of the Income Tax Act, 1961. The CIT(A) partly allowed the assessee's appeal, leading to the revenue's challenge. The assessee also filed a cross objection for A.Y. 2012-13. Notably, the company is undergoing insolvency proceedings before the NCLT, a fact acknowledged by the Ld DR.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 299263 (ITAT-MUMBAI)
• Duration Of Justice: 6 year(s) 6 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-07-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 09-07-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 15-12-2016
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Rule 8D
• Section: 143(3); 115JB

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “F” BENCH, MUMBAI BEFORE SHRI OM PRAKASH KANT, AM AND MS. KAVITHA RAJAGOPAL, JM ITA N o. 7401/M u m /20 16 (A s s ess me nt Y ea r: 20 16-17) ITA N o. 7558/M u m /20 19 (A s s ess me nt Y ea r: 20 12-13) ACIT Circle- 3(3)(2) Room No. 628, 6 th Floor, Aayakar Bhavan, M.K. Road, Mumbai-400020 V s. M/s. Videocon Realty & Infrastructures Ltd. 171, C-wing, Mittal Court, Nariman Point, Mumbai-400021 PA N /GI R N o.A AAC V23 03 V (Appellant) : (Respondent) CO No. 215/M u m/2 01 8 (A s s ess me nt Y ea r:2 01 2-13) M/s. Videocon Realty & Infrastructures Ltd. 171, C-wing, Mittal Court, Nariman Point, Mumbai-400021 V s. ACIT Circle- 3(2)(2) Room No. 628, 6 th Floor, Aayakar Bhavan, M.K. Road, Mumbai-400020 PA N /GI R N o.A AAC V23 03 V (Appellant) : (Respondent) Assessee by : None Revenue by : Shri Ankush Kapoor, DR D ate of H ea rin g : 10.07.2023 D ate of P ron ou n ce me n t : 11.07.2023 2 ITA No.7558/Mum/2019, 7401/Mum/2016 ( A . Y .2016-1 7 , 1 2-13) CO. 215/Mum/2018 (A.Y. 2012-13) Videocon Reality & Infrastructure Ltd. V/s ACIT 2(3)(3) O R D E R PER KAVITHA RAJAGOPAL, J M: 1. The above captioned appeals have been filed by the revenue challenging the order of the learned Commissioner of Income Tax (Appeals)-8 (‘ld.CIT(A) for short), u/s.250 of the Income Tax Act, 1961 (‘the Act'), pertaining to the Assessment Year (‘A.Y.’ for short) 2012-13 and 2016-17. The assessee has also filed a cross objection challenging the order of Ld. CIT(A) for A.Y. 2012-13. 2. The revenue and the assessee have challenged the appeal and the cross objection on various grounds. As there was no representation on behalf of the assessee, we hereby proceed to decide the appeals and the CO by hearing the Ld. DR and on perusal of material available on record. 3. As the facts all these cases are identical, we hereby pass a consolidated order in these appeals by taking ITA No. 7558/Mum/2019 as the lead case for the sake of convenience. 4. The brief facts are that the assessee is a domestic company engaged in the business of real-estate development and had filed its return of income for A.Y. 2016-17 dated 17.10.2016 declaring loss at ₹8,34,79,412/-. The assessee’s case was selected for scrutiny and assessment order dated 18.12.2018 was passed u/s 143(3) of the Act. where the AO determined the total income at ₹ 3,33,47,710/- under normal provisions and book profit 3 ITA No.7558/Mum/2019, 7401/Mum/2016 ( A . Y .2016-1 7 , 1 2-13) CO. 215/Mum/2018 (A.Y. 2012-13) Videocon Reality & Infrastructure Ltd. V/s ACIT 2(3)(3) u/s 115JB at ₹7,20,24,375/- by making an addition/disallowance of ₹11,88,75,497/- u/s 14A of the Act r.w. rule 8D of the IT Rules. 5. The assessee was in appeal before the Ld. CIT(A). The Ld. CIT(A) partly allowed the grounds raised by the assessee. The revenue is in appeal before us challenging the order of the Ld. CIT(A) in deleting the impugned addition/disallowance. The assessee has also filed cross objection for AY. 2012-13. 6. It is observed that the assessee company is undergoing insolvency proceedings before Hon’ble NCLT (National Company Law Tribunal) and the Ld DR has also not controverted the said fact. We deem it fit to dismiss the appeals filed by the revenue with the liberty given to the revenue to restore the appeals and also dismiss the CO filed by the assessee with the liberty given to the assessee/RP after the moratorium period as per section 14 of the Insolvency and Bankruptcy Code 2016 along with fresh Form 36. 7. In the result the appeals filed by the revenue and the cross objection filed by the assessee are dismissed. Order pronounced in the open court on 11.07.2023 Sd/- Sd/- (Om Prakash Kant) (Kavitha Rajagopal) Accountant Member Judicial Member Mumbai; Dated : 11.07.2023 Aniket Singh Rajput, Stenographer Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. CIT - concerned 4 ITA No.7558/Mum/2019, 7401/Mum/2016 ( A . Y .2016-1 7 , 1 2-13) CO. 215/Mum/2018 (A.Y. 2012-13) Videocon Reality & Infrastructure Ltd. V/s ACIT 2(3)(3) 4. DR, ITAT, Mumbai 5. Guard File BY ORDER, (Dy./Asstt. Registrar) ITAT, Mumbai