NATIONAL SOCIETY FOR EQUAL OPPORTUNITIES FOR THE HANDICAPPED INDIA, MUMBAI V. ASST DIT (E) II(2), MUMBAI

ITA 7740/MUM/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 3059 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-06-2016
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 29-12-2014
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER I.T.A. NO.7740/M/2014 (ASSESSMENT YEAR: 2010 - 2011 ) NATIONAL SOCIETY FOR EQUAL OPPORTUNITIES FOR THE HANDICAPPED INDIA, POSTAL COLONY RD, CHEMBUR, MUMBAI 400 071. / VS. ADIT (E) - II(2), R.NO.509, 5 TH FLOOR, PIRAMAL CHAMBER, LALBAUG, PAREL, MUMBAI 400 012. ./ PAN : AAATNO534C ( / APPELLANT) .. ( / RESPONDENT ) / APPELLANT BY : SHRI MANDAR VAIDYA / RESPONDENT BY : SHRI AARSI PRASAD, JCIT / DATE OF HEARING : 21 .06.2016 / DATE OF PRONOUNCEMENT : 21 .06.2016 / O R D E R PER D. KARUNAKARA RAO, AM: THIS APPEAL FILED BY THE ASSESSEE ON 29.12.2014 IS AGAINST THE ORDER OF THE CIT (A) - 1, MUMBAI DATED 28.8.2014 FOR THE ASSESSMENT YEAR 2010 - 2011. IN THIS APPEAL, ASSESSEE RAISED SOLITARY ISSUE IN THE GROUND OF APPEAL AND IT RELATES TO FAILURE TO GRANT SET OFF OF THE BROUGHT FORWARD LOSSES (EXCESS EXPENDITURE OVER THE INCOME) AGAINST THE EXCESS INCOME REPORTED IN THE AY 2010 - 2011. 2. BEFORE US, LD COUNSEL FOR THE ASSESSEE MENTIONED THAT THE ALLOWABILITY OF SET OFF OF THE BROUGHT FORWARD LOSSES AGAINST THE EXCESS INCOME OF THE CURRENT YEAR IS A COVERED ISSUE IN VIEW OF THE BINDING JUDGMENT OF THE HONBLE JURISDICTIONAL HIGH COURT IN TH E CASE OF CIT VS. INSTITUTE OF BANKING (264 ITR 110). THE AUTHORITIES BELOW MADE AN ATTEMPT TO DISTINGUISH THE SAID JUDGMENT AND DENIED THE BENEFIT TO THE ASSESSEE. ON THESE FACTS, LD COUNSEL FOR THE ASSESSEE BROUGHT OUR ATTENTION TO THE CITED JUDGMENT I N THE CASE OF INSTITUTE OF BANKING (SUPRA) AND READ OUT THE RATIO OF THE SAID JUDGMENT THAT EXCESS EXPENDITURE IN PRIOR YEARS CAN BE SET OFF AGAINST INCOME OF CURRENT YEAR. IT IS THE CONTENTION OF THE LD COUNSEL FOR THE ASSESSEE, TO THAT EXTENT THE ASSESS EE IS ELIGIBLE FOR EXEMPTION. 2 3. ON PERUSAL OF THE FACTS AS WELL AS THE SETTLED LEGAL PROPOSITION ON THE ISSUE UNDER CONSIDERATION, I FIND THE IMPUGNED ORDER OF THE CIT (A) IS NOT SUSTAINABLE IN LAW. I ACCORDINGLY DIRECT THE CIT (A) TO FOLLOW THE ABOVE RA TIO OF THE HONBLE JURISDICTIONAL HIGH COURT AND GRANT RELIEF TO THE ASSESSEE IN ACCORDANCE WITH LAW . ACCORDINGLY, THE ISSUE RAISED BY THE ASSESSEE IN GROUND NO.1 IS ALLOWED IN FAVOUR OF THE ASSESSEE. 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRO NOUNCED IN THE OPEN COURT ON 2 1 S T JUNE, 2016. S D / - (D. KARUNAKARA RAO) ACCOUNTANT MEMBER MUMBAI ; 21 .6.2016 . . ./ OKK , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . //TRUE COPY// / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI