INTERNATIONAL COPPER ASSOCIATION INDIA , MUMBAI V. ITO (EXEMP)- II (1) , MUMBAI

ITA 7885/MUM/2019

• Counselvise Citation: [2022] 107 COUNSELVISE.COM (IT) 0391 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 6 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-07-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 22-12-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 11; 12A

Judgement Text

आयकर य कर म ु ंबई ठ “एस एम स ” क स , य यक स य ए ं एम ब ग ेश, ेख क र स य के सम# IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “SMC ”, MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SHRI M. BALAGANESH, ACCOUNTANT MEMBER आ सं. 7884/म ु ं/20 19 ( ). . 2010-11) ITA NO. 7884/MUM/2019(A.Y.2010-11) आ सं. 7885/म ु ं/2019 ( ). . 2011-12) ITA NO. 7885/MUM/2019(A.Y.2011-12) International Copper Association India, Unit Nos 1401 to 1403, Wing ‘ A’, Kailash Business Park, Veer Sawarkar Road, Parksite, Vikroli (W), Mumbai 400 079. PAN: AAACI-9045-G ...... + /Appellant ब) म Vs. ITO (Exempt) II (1), 5 th Floor, Piramal Chambers, Lalbaug, Parel, Mumbai – 400 012. ..... , - /Respondent + . र / Appellant by : None , - . र /Respondent by : Shri Vachaspati Tripathi स ु ) ई क/ - / Date of hearing : 05/07/2022 012 क/ - / Date of pronouncement : 05/07/2022 आदेश/ ORDER PER VIKAS AWASTHY, JM: These two appeals by the assessee are directed against the order of Commissioner of Income Tax (Appeals)-3, Mumbai ( in short ‘the CIT(A) ’) dated 23/09/2019 common for assessment years 2010-11 and 2011-12. Since, facts germane to the issue in appeals are identical and identical grounds 2 ITA NO. 7884/MUM/2019(A.Y.2010-11) ITA NO. 7885/MUM/2019(A.Y.2011-12) have been raised in both the appeals, these appeals are taken up together for adjudication and are decided by this common order. 2. These appeals were listed for hearing for the first time on 07/06/2021. The notice of hearing of the appeals were sent to the assessee through RPAD on the address mention in Form No.36. The notice was duly served as the same was not received back unserved from the Postal Authorities. Despite service of notice, none appeared to represent the assessee on 07/06/2021. Thereafter, the appeals were adjourned to 04/08/2021, 27/09/2021, 15/11/2021, 27/12/2021, 08/02/2022, 21/03/2022, 23/05/2022 and finally to 05/07/2022. Every time notice of hearing was served on the assessee / appellant through RPAD on the address furnished by the assessee. On none of the dates, any Authorized Representative for the assessee appeared. No letter seeking adjournment was either filed by assessee. On two occasions i.e. on 21/03/2022 and 23/05/2022 Ms. Nisha Aggarwal had appeared on behalf of the assessee, albeit, without power of attorney / letter of authority. It seems that the assessee is not keen to pursue the appeals, hence, the appeals are taken up for hearing with the assistance of ld.Departmental Representative and the material available on record. 3. Shri Vachaspati Tripathi representing the Department submitted that the Assessing Officer has made addition of the interest income of Rs.26,86,980/- in assessment year 2010-11 and Rs.24,84,310/- in assessment year 2011-12, The assessee has earned said interest on money deposited in fixed deposits with Scheduled Banks. The Assessing Officer made addition of the aforesaid amounts in the respective assessment years in line with the decision of Hon'ble Supreme Court of India in the case of Bangalore Club vs. 3 ITA NO. 7884/MUM/2019(A.Y.2010-11) ITA NO. 7885/MUM/2019(A.Y.2011-12) CIT reported as 212 Taxman 566, wherein it has been held that the interest earned by the assessee from the banks will not fall within the ambit of mutuality. Similar view has been expressed by Hon'ble Bombay High Court in the case of CIT vs. Effluent Treatment Plant (Thane-Belapur) Association reported as 328 ITR 362. The CIT(A) upheld the findings of Assessing Officer following the aforesaid decisions. The ld.Departmental Representative prayed for dismissing appeal of the assessee and upholding the impugned order. 4. We have heard the submissions made by ld.Departmental Representative and orders of authorities below examined. The assessee in appeal has raised as many as eight grounds. The solitary issue in the grounds of appeal is against denial of exemption u/s 11 of the Income Tax Act, 1961 [in short ‘ the Act’ ]on interest income from money deposited in fixed deposits with Scheduled Bank. 5. The assessee is a company registered u/s. 25 of the Companies Act, 1956. The assessee is registered under section 12A of the Act. During the period relevant to assessment year under appeal, the assessee claimed exemption of interest income on bank fixed deposits. We find that the Hon'ble Apex Court in the case of Bangalore Club(supra), wherein on the issue similar to the issue in hand, the assessee therein had claimed exemption on interest earned on fixed deposits from its Members. The question before the Hon'ble Apex Court was ‘ Whether or not the interest earned by the assessee on surplus funds invested in the fixed deposits with the Corporate Member Bank is exempt from levy of Income Tax based on the doctrine of mutuality?’ The Hon'ble Apex Court after considering various decisions held that interest income earned by the assessee from Banks will not fall within the ambit of 4 ITA NO. 7884/MUM/2019(A.Y.2010-11) ITA NO. 7885/MUM/2019(A.Y.2011-12) mutuality principle and will therefore, be exigible to Income Tax in the hands of the assessee. 6. There is no material available before us to controvert the findings of the Authorities below and to distinguish the judgment of Hon’ble Apex Court. We find no reason to disturb the findings of First Appellate Authority on this issue, hence, the same are upheld. Resultantly, both the appeals by the assessee are dismissed being devoid of any merit. Order pronounced in the open court on Tuesday the 05 th day of July, 2022. Sd/- Sd/- ( M. BALAGANESH ) (VIKAS AWASTHY) ेख क र स य/ACCOUNTANT MEMBER य यक स य/JUDICIAL MEMBER म ु ंबई/ Mumbai, 3 ) ंक/Dated 05/07/2022 Vm, Sr. PS(O/S) े Copy of the Order forwarded to : 1. +/The Appellant , 2. , - / The Respondent. 3. आयकर आय ु 4-( )/ The CIT(A)- 4. आयकर आय ु 4- CIT 5. 5 ग य , - ) , आय. . ., म ु बंई/DR, ITAT, Mumbai 6. ग 78 9 : /Guard file. BY ORDER, //True Copy// (Dy./Asstt. Registrar) ITAT, Mumbai