DCIT 8(2)(1), MUMBAI V. PANCARD CLUBS LTD., MUMBAI

MA 160/MUM/2021

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 4000 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 9 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 29-09-2021
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 20-07-2021
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: VIJAY KUMAR MENON
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER M.A. NO.160/MUM./2021 (ARISING OUT OF ITA NO.2773/MUM./2018) (ASSESSMENT YEAR : 201011) & M.A. NO.161/MUM./2021 (ARISING OUT OF ITA NO.2774/MUM./2018) (ASSESSMENT YEAR : 201011) DY. COMMISSIONER OF INCOME TAX CIRCLE8(2)(1), MUMBAI . APPLICANT (ORIGINAL RESPONDENT) V/S PANNCARD CLUBS LTD. 111113, KALYANDAS UDYOG BHAVAN NEAR CENTURY BHAVAN PRABHADEVI, MUMBAI 400 025 PAN AAACP9093R . RESPONDENT (ORIGINAL APPELLANT) REVENUE BY : SHRI VIJAY KUMAR MENON ASSESSEE BY : NONE DATE OF HEARING 17.09.2021 DATE OF ORDER 29/09/2021 O R D E R PER S. RIFAUR RAHMAN, A.M. BY WAY OF THESE MISCELLANEOUS APPLICATIONS, THE REVENUE SEEKS RECTIFICATION IN THE ORDER DATED 8 TH JANUARY 2020, PASSED IN ITA NO. 2773 & 2774/MUM./2018. 2. BEFORE US, THE REVENUE PRAYED THAT THE ORDER PASSED BY THE TRIBUNAL MAY BE RECTIFIED AS IN THE GROUND NO.3, FOR THE ISSUE OF DISALLOWANCE UNDER SECTION 14A OF THE ACT, IT WAS OBSERVED BY THE TRIBUNAL IN ITS ORDER AS BELOW: THE AO MADE ADDITIONS ONLY ON THE REASON THAT THE MATTER IS STILL PENDING IN HONBLE HIGH COURT IGNORING THE FACT THAT THE HONBLE HIGH COURT HAD ALREADY DECIDED THE ISSUE IN AYS 200405 AND 200506 IN FAVOUR OF ASSESSEE. 2 MA NOS. 160 & 161/M/2021 PANNCARD CLUBS LTD. 3. AT THE TIME OF HEARING, THE LEARNED DEPARTMENTAL REPRESENTATIVE BROUGHT TO OUR NOTICE THAT THE ISSUE DISCUSSED BY THE BENCH RELATING TO GROUNDS NO.1 AND 2, AND ACCORDINGLY THE APPEAL WAS DISMISSED. WHEREAS, GROUND NO.3, RELATES TO DISALLOWANCE UNDER SECTION 14A OF THE ACT. IT IS APPARENT ON RECORD THAT THE BENCH HAS DISMISSED THE APPEAL OF THE REVENUE WITH THE OBSERVATION THAT THE ASSESSING OFFICER HAS NOT FOLLOWED HIGH COURT DECISION WHICH MAY BE RECTIFIED. 4. CONSIDERING THE SUBMISSIONS OF THE LEARNED DEPARTMENTAL REPRESENTATIVE AND WE PROCEED TO ADJUDICATE THE ISSUE RAISED IN THESE MISCELLANEOUS APPLICATIONS FILED BEFORE US. WE NOTICE THAT WE HAVE ADJUDICATED THE ISSUE RELYING ON HIGH COURT DECISION RELATING TO GROUNDS NO.1, AND 2 AND INADVERTENTLY THE SAME CONCLUSION WAS HELD FOR GROUND NO.3 ALSO. WE NOTICE THAT IN GROUND NO.3, REVENUE HAS RAISED THE ISSUE RELATING TO DISALLOWANCE UNDER SECTION 14A OF THE ACT AND THAT THE LEARNED CIT(A) HAS NOT FOLLOWED THE CBDT CIRCULAR NO.5 OF 2014, DATED 11 TH FEBRUARY 2014, AND DECIDED THE ISSUE IN FAVOUR OF THE ASSESSEE. SINCE WE HAVE NOT ADJUDICATED THE ISSUE RAISED BY THE REVENUE, WE DEEM IT FIT AND PROPER TO RECALL THE ORDER FOR THE LIMITED PURPOSE. IN ORDER TO ADJUDICATE THE GROUND NO. 3 ONLY, WE DIRECT THE REGISTRY TO FIX THE CASE FOR HEARING IN DUE COURSE. 5. IN THE RESULT, MISCELLANEOUS APPLICATIONS BY THE REVENUE ARE PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 29/09/2021. SD/ - SAKTIJIT DEY JUDICIAL MEMBER SD/ - S. RIFAUR RAHMAN ACCOUNTANT MEMBER MUMBAI, DATED: 29/09/2021 3 MA NOS. 160 & 161/M/2021 PANNCARD CLUBS LTD. COPY OF THE ORDER FORWARDED TO : (1) THE ASSESSEE; (2) THE REVENUE; (3) THE CIT(A); (4) THE CIT, MUMBAI CITY CONCERNED; (5) THE DR, ITAT, MUMBAI; (6) GUARD FILE. TRUE COPY BY ORDER RAHUL SHARMA, SR. P.S. ASSISTANT REGISTRAR ITAT, MUMBAI