KANAKIA SPACES PRIVATE LIMITED,MUMBAI V. DCIT, CENTRAL CIRCLE-4(1), MUMBAI, NARIMAN POINT

CO 85/MUM/2024

AI Insights

The case involves an appeal by the Revenue against an order by the Commissioner of Income Tax (Appeals)-52, Mumbai, which had deleted a disallowance made by the Assessing Officer (AO) of Rs. 1,75,00,000 claimed under section 35(1)(ii) of the Income Tax Act, 1961. The disallowance was related to donations made to M/s Herbicure Health Care Bio Herbal Research Foundation, which the AO questioned as a genuine entity. The assessee, Kanakia Spaces Pvt Ltd., filed a Cross Objection against the Revenue's appeal. The main legal contention revolved around the genuineness of the entity receiving the donations and the applicability of the monetary limit for appeals as per the CBDT Circular.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 25623 (ITAT-MUMBAI)
• Duration Of Justice: 4 month(s) 18 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 28-10-2024
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 28-10-2024
• Assessment Year: 2011-2012
• Appeal Filed On: 10-06-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: BISWANATH DAS
• Assessee Lawyers: VIJAY MEHTA
• Keywords: Tax effect
• Section: 250

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “E” BENCH, MUMBAI BEFORE SHRI SANDEEP SINGH KARHAIL, JUDICIAL MEMBERAND SHRIOMKARESHWAR CHIDARA, ACCOUNTANT MEMBER ITA No.1601/Mum/2024 (Assessment Year : 2011–12) DCIT, Central Circle-4(1) 1916, 19th floor, Nariman Point Mumbai – 400021. ……………. Appellant v/s Kanakia Spaces Pvt Ltd., 10th Floor, 215 Atrium, Andheri Kurla Road Andheri (E), Mumbai - 400093 PAN – AAACK2629J ……………. Respondent CO No.85/Mum/2024 (Assessment Year : 2011–12) Kanakia Spaces Pvt Ltd., 10th Floor, 215 Atrium, Andheri Kurla Road Andheri (E), Mumbai - 400093 PAN – AAACK2629J ……………. Cross Objector (Original Respondent) v/s DCIT, Central Circle-4(1) 1916, 19th floor, Nariman Point Mumbai – 400021. ……………. Respondent (Original Appellant) Assessee by : Shri Vijay Mehta Revenue by : Shri Biswanath Das – CIT DR Date of Hearing –28/10/2024 Date of Order – 29/10/2024 Kanakia Spaces Pvt Ltd., ITA No.1601/Mum/2024& CO. No. 85/Mum/2024 Page | 2 O R D E R PER BENCH The present appeal by the Revenue and the Cross Objection by the assessee have been filed against the impugned order dated 30/01/2024, passed under section 250 of the Income Tax Act, 1961 (“the Act”) by the learned Commissioner of Income Tax (Appeals)-52, Mumbai, [“learned CIT(A)”], for the assessment year 2011–12. 2. In its appeal, the Revenue has raised the following grounds: - 1. On the facts and in the circumstances of the case, whether Ld. CIT(A) erred in deleting the disallowance made by the AO of Rs. 1,75,00,000/- claimed u/s 35(1)(ii) of the Income tax Act, 1961, without appreciating the fact that M/s Herbicure Health Care Bio Herbal Research Foundation which received the donations for research was not a genuine entity. 2. The appellant craves to leave, to add, to amend and / or to alter my of the ground of appeal, if need be. 3. At the outset, the learned A.R., appearing for the assessee, by referring to column 10 of Form No. 36 filed by the Revenue submitted that the tax effect relating to the grounds of appeal raised by the Revenue is below the monetary limit of Rs.60 lakh, applicable to appeals before the Tribunal, as per CBDT Circular no.9 of 2024, dated 17/09/2024. Further, he submitted that none of the exceptions as provided in the aforesaid CBDT Circular would apply to Revenue’s appeal. Thus, the learned A.R. submitted that Revenue’s appeal being covered under the aforesaid Circular is not maintainable. Kanakia Spaces Pvt Ltd., ITA No.1601/Mum/2024& CO. No. 85/Mum/2024 Page | 3 4. The learned Departmental Representative could not produce any material before us to controvert the submission so made on behalf of the assessee. 5. Having considered the submissions and perused the material available on record, we are of the view that the tax effect relating to the ground of appeal raised by the Revenue in the present appeal is below the monetary limit of Rs. 60 lakh as per CBDT Circular no.9 of 2024, dated 17/09/2024. In view of the aforesaid, Revenue’s appeal deserves to be dismissed. However, the Revenue is granted the liberty to seek recall of this order if, at a later point in time, it is found that the appeal falls under any of the exceptions provided in the Circular referred to above. 6. Since the appeal filed by the Revenue is dismissed, the Cross Objection filed by the assessee becomes infructuous and therefore is dismissed. 7. In the result, the appeal by the Revenue and Cross Objection by the assessee are dismissed. Order pronounced in the open Court on 29/10/2024 Sd/- Sd -OMKARESHWAR CHIDARA ACCOUNTANT MEMBER Sd/- SANDEEP SINGH KARHAIL JUDICIAL MEMBER MUMBAI, DATED: 29/10/2024 Kanakia Spaces Pvt Ltd., ITA No.1601/Mum/2024& CO. No. 85/Mum/2024 Page | 4 Copy of the order forwarded to: (1) The Assessee; (2) The Revenue; (3) The PCIT / CIT (Judicial); (4) The DR, ITAT, Mumbai; and (5) Guard file. True Copy By Order Assistant Registrar ITAT, Mumbai "