THE DY CIT RG3(3), Mumbai V. M/S. WARTSILA INDIA LTD., Mumbai

ITA 8794/MUM/2004

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 9482 (ITAT-MUMBAI)
• Duration Of Justice: 7 year(s) 11 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: I
• Next Hearing Date: 06-09-2012
• Assessment Year: 2001-2002
• Appeal Filed On: 06-12-2004
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P K SHUKLA
• Assessee Lawyers: J D MISTRY; SANJIV M SHAH
• Keywords: Bad and doubtful debts
• Section: 14A

Judgement Text

, , , , , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES I, MUMBAI .. , !.'.#$%, '& '(, ' BEFORE SHRI H.L.KARWA, PRESIDENT AND SHRI N.K.BILLA IYA, AM ./ ITA NO.8794/MUM/2004 ( *! + *! + *! + *! + / / / / ASSESSMENT YEAR : 2001-2002) THE DY.COMMISSIONER OF INCOME-TAX RANGE 3(3) MUMBAI. M/S.WARTSILA INDIA LIMITED 76, FREE PRESS HOUSE, NARIMAN POINT MUMBAI 400 021. PAN : AAACW0345D. ( ,- / // / APPELLANT) ! ! ! ! / VS. ( ./,-/ RESPONDENT) ,- 0 00 0 1 ' 1 ' 1 ' 1 ' / APPELLANT BY : SHRI P.K.SHUKLA ./,- 0 1 ' 0 1 ' 0 1 ' 0 1 ' / RESPONDENT BY : S/SHRI J.D.MISTRY & SANJIV M.SHAH ! 0 2& / / / / DATE OF HEARING : 26.11.2012 34+ 0 2& / DATE OF PRONOUNCEMENT : 26.11.2012 ''5 ''5 ''5 ''5 / / / / O R D E R PER N.K.BILLAIYA (AM) : THIS APPEAL BY THE REVENUE IS PREFERRED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS) 32, MUMBAI D ATED 16.09.2004, PERTAINING TO ASSESSMENT YEAR 2001-2002 . 2. THE REVENUE HAS RAISED FOLLOWING SUBSTANTIVE GRO UNDS OF APPEAL:- ITA NO.8794/MUM/2004. M/S.WARTSILA INDIA LIMITED. 2 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE CIT(A) ERRED IN DELETING THE ADDITI ON OF ` 1,69,246/- OUT OF LEASE HOLD REPAIRS / IMPROVEMENT INCURRED BY THE ASSESSEE. 2. ON THE FACTS AND IN THE CIR CIRCUMSTANCES OF TH E CASE AND IN LAW, THE CIT(A) ERRED IN DELETING ` 15,17,088/- ON ACCOUNT OF EXPENDITURE TOWARDS EARNING DIVIDEND INC OME U/S 14A OF THE I.T.ACT. 3. ON THE FACTS AND IN THE CIR CIRCUMSTANCES OF TH E CASE AND IN LAW, THE CIT(A) ERRED IN DELETING ` 37,40,538/- ON ACCOUNT OF BAD DEBTS. 4. ON THE FACTS AND IN THE CIR CIRCUMSTANCES OF TH E CASE AND IN LAW, THE CIT(A) ERRED IN DELETING THE ADDITI ON OF ` 26,44,155/- BEING CLUB MEMBERSHIP AND OTHER FEES WITHOUT APPRECIATING THE FACT THAT CLUB MEMBERSHIP AND PROMOTION OF THE BUSINESS COULD NOT BE ESTABLISHED. 5. ON THE FACTS AND IN THE CIR CIRCUMSTANCES OF TH E CASE AND IN LAW, THE CIT(A) ERRED IN DIRECTING TO ALLOW EXPENSES ON HIRE CHARGES AGAINST THE RECEIPT OF HIR E CHARGES BEFORE DISALLOWING THE SAME AS PER CLAUSE ( BAA) OF 80HHC. 3. THE ISSUE RAISED BY GROUNDS NO.1, 2 AND 3 ARE ID ENTICAL WITH THE ISSUES RAISED BY GROUNDS NO.3, 4 AND 5 IN ITA NO.79 26/MUM/2004 THOUGH QUANTUM MAY DIFFER. AS WE HAVE ALREADY DECID ED SIMILAR ISSUES IN ITA NO.7926/MUM/2004 BY OUR ORDER OF EVEN DATE, FOR SIMILAR REASONS GROUNDS NO.1, 2 AND 3 OF THE PRESEN T APPEAL ARE DISMISSED. ITA NO.8794/MUM/2004. M/S.WARTSILA INDIA LIMITED. 3 5. GROUND NO.5 IS IDENTICAL WITH THE ISSUES RAISED BY GROUND NO.7 IN ITA NO.7926/MUM/2004. THE FACTS AND CIRCUMSTANCE S BEING THE SAME, FOR THE SIMILAR REASONS GROUND NO.5 IS DISMIS SED. 6. GROUND NO.4 RELATES TO THE DELETION OF ADDITION OF ` 26,44,155 BEING CLUB MEMBERSHIP FEE. THE COUNSEL FOR THE ASSE SSEE POINTED OUT THAT SIMILAR ISSUE HAD BEEN DECIDED BY THE TRIBUNAL IN ASSESSEES OWN CASE IN ASSESSMENT YEAR 2004-2005 IN ITA NO.1278/MU M/2009 AND IN ASSESSMENT YEAR 2003-2004 IN ASSESSEES OWN CASE IN ITA NO.4740/MUM/2008. AS THE FACTS AND CIRCUMSTANCES AR E THE SAME, THE COUNSEL PLEADED THAT THE DECISION OF THE TRIBUNAL I N ASSESSEES OWN CASE SHOULD BE FOLLOWED. 7. WE HAVE CAREFULLY PERUSED THE ORDERS OF THE TRIBU NAL IN ITA NO.1278/MUM/2009 AND 4740/MUM/2008. WE FIND THAT IN ASSESSMENT YEAR 2004-2005, THE TRIBUNAL HAS DECIDED THIS ISSUE IN FAVOUR OF THE ASSESSEE BASED ON THE FINDING GIVEN I N ASSESSEES OWN CASE IN ITA NO.294/MUM/1997 FOR ASSESSMENT YEAR 199 2-93. AS NO DISTINGUISHING FACTS HAVING BEEN BROUGHT ON RECORD FOR THE YEAR UNDER CONSIDERATION, RESPECTFULLY FOLLOWING THE FINDINGS OF THE TRIBUNAL IN ITA NO.1278/MUM/2009 AND ITA NO.4740/MUM/2008, WE H AVE NO HESITATION IN DELETING THE ADDITION OF ` 26,44,155 ON ACCOUNT OF CLUB MEMBERSHIP AND OTHER FEE. GROUND NO.4 IS ACCORDINGL Y DISMISSED. 8. GROUNDS NO.6 AND 7 REQUIRE NO ADJUDICATION BEING GENERAL IN NATURE. ITA NO.8794/MUM/2004. M/S.WARTSILA INDIA LIMITED. 4 9. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 26 TH DAY OF NOVEMBER, 2012. ''5 0 34+ 6'!7 4 0 8 SD/- SD/- (H.L.KARWA) (N.K.BILLAIYA) / PRESIDENT '& '( '& '( '& '( '& '( / ACCOUNTANT MEMBER MUMBAI ; 6'! DATED : 26 TH NOVEMBER, 2012. DEVDAS* ''5 0 .*29: ;':+2 ''5 0 .*29: ;':+2 ''5 0 .*29: ;':+2 ''5 0 .*29: ;':+2/ COPY OF THE ORDER FORWARDED TO : 1. ,- / THE APPELLANT 2. ./,- / THE RESPONDENT. 3. < () / THE CIT(A)- XXXII, MUMBAI. 4. < / CIT 5. :?8 .*2*! , , / DR, ITAT, MUMBAI 6. 8@ A / GUARD FILE. ''5! ''5! ''5! ''5! / BY ORDER, /:2 .*2 //TRUE COPY// B B B B/ // /C D C D C D C D ( DY./ASSTT. REGISTRAR) , , , , / ITAT, MUMBAI