IND GLOBAL CORPORATE FINANCE LTD ( NOW KNOWN AS ERNEST & YOUNG MERCHANT BANKING BUSINESS SERVICES P.LTD), V. DCIT 3(2),

MA 278/MUM/2013

• Counselvise Citation: [2014] 124 COUNSELVISE.COM (IT) 1683 (ITAT-MUMBAI)
• Duration Of Justice: 6 month(s) 7 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 07-02-2014
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2001-2002
• Appeal Filed On: 30-07-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: M L PERUMAL
• Keywords: Capital expenditure

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL G B ENCH, MUMBAI . . , , !'# , $ % BEFORE SHRI I.P. BANSAL, JM AND SHRI N.K. BILLAI YA, AM M.A. NO. 278/MUM/2013 (ARISING OUT OF I.T.A. NO.1656/MUM/2008) ( & & & & / ASSESSMENT YEAR :2001-02 M/S. IND GLOBAL CORPORATE FINANCE PVT. LTD., (NOW KNOWN AS ERNST & YOUNG MERCHANT BANKING BUSINESS SERVICES (P) LTD.) 19 TH FLOOR, EXPRESS TOWERS, NARIMAN POINT, MUMBAI -400 021 / VS. THE DCIT -3(2), AAYAKAR BHAVAN, MUMBAI-400 020 ' $ ./ () ./ PAN/GIR NO. : AAACI 8134Q ( '* / APPLICANT ) .. ( +,'* / RESPONDENT ) '* - / APPLICANT BY: SHRI RAJAN VORA +,'* . - / RESPONDENT BY: SHRI M.L. PERUMAL . /0$ / DATE OF HEARING :07.02.2014 12& . /0$ / DATE OF PRONOUNCEMENT :07.02.2014 3 / O R D E R PER N.K. BILLAIYA, AM: THIS MISCELLANEOUS APPLICATION BY THE ASSESSEE IS D IRECTED AGAINST THE ORDER OF THE TRIBUNAL IN ITA NO. 1656/M/08 PERT AINING TO ASSESSMENT YEAR 2001-02. M.A.NO. 278/M/2013 2 2. IT IS THE SAY OF THE ASSESSEE THAT WHILE DECIDI NG THE ISSUE OF ALLOWABILITY OF NON-COMPETE FEES AS REVENUE EXPENDI TURE AS CLAIMED BY THE ASSESSEE THOUGH TREATED AS CAPITAL EXPENDITURE BY THE LOWER AUTHORITIES, THE TRIBUNAL AT PARA-2.8 AT THE END OF PAGE-11 HELD AS UNDER: THEREFORE, WE HOLD THAT EXPENDITURE HAS TO BE DISA LLOWED AS CAPITAL EXPENDITURE. 3. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED BEFOR E US THAT THE TRIBUNAL SHOULD HAVE DECIDED THE ISSUE AS UNDER: THEREFORE, WE HOLD THAT EXPENDITURE HAS TO BE DISA LLOWED AS REVENUE IN NATURE. 4. THE LD. COUNSEL PRAYED THAT SUITABLE MODIFICATIO N SHOULD BE MADE IN THE ORDER OF THE TRIBUNAL. 5. WE DO NOT FIND ANY FORCE IN THE SUBMISSION OF TH E LD. COUNSEL. THE COMPLETE FINDINGS OF THE TRIBUNAL READ AS UNDER : THEREFORE, WE HOLD THAT EXPENDITURE HAS TO BE DISALLOWED AS CAPITAL EXPENDITURE. THEREFORE, WE H OLD THAT EXPENDITURE HAS TO BE DISALLOWED AS CAPITAL EXPENDI TURE. WE, ACCORDINGLY SET ASIDE THE ORDER OF THE CIT(A) A ND CONFIRM THE ADDITION MADE BY THE AO. 6. THIS BEING THE COMPLETE FINDING IN RESPECT OF TH E ISSUE OF NON- COMPETE FEE. WE DO NOT FIND ANY MERIT IN THE SUBMI SSIONS OF THE LD. COUNSEL AND ALSO IN THIS MISCELLANEOUS APPLICATION. ACCORDINGLY, THE MISCELLANEOUS APPLICATION IS DISMISSED. M.A.NO. 278/M/2013 3 7. IN THE RESULT, THE MISCELLANEOUS APPLICATION FIL ED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 7TH FEBRUARY , 2014 . 3 . 2& $ 4 56 07.02.2014 2 . 7 SD/- SD/- (I.P. BANSAL ) (N.K. BILLAIYA) /JUDICIAL MEMBER $ / ACCOUNTANT MEMBER MUMBAI; 5 DATED 07.02.2014 . . ./ RJ , SR. PS 3 3 3 3 . .. . +/ +/ +/ +/ 8 &/ 8 &/ 8 &/ 8 &/ / COPY OF THE ORDER FORWARDED TO : 1. '* / THE APPELLANT 2. +,'* / THE RESPONDENT. 3. 9 ( ) / THE CIT(A)- 4. 9 / CIT 5. :7 +/ , , / DR, ITAT, MUMBAI 6. 7; < / GUARD FILE. 3 3 3 3 / BY ORDER, , / +/ //TRUE COPY// = == = / > > > > ( ( ( ( (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI