EVERSMILE PROPERTIES PRIVATE LIMITED , MUMBAI V. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 3(1), MUMBAI

MA 698/MUM/2017

• Counselvise Citation: [2018] 124 COUNSELVISE.COM (IT) 6620 (ITAT-MUMBAI)
• Duration Of Justice: 9 month(s) 5 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 28-05-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2006-2007
• Appeal Filed On: 23-08-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJAT MITTAL
• Section: 37(1)

Judgement Text

IN THE INC OME TAX APPELLATE TRIBUNAL E BENCH, MUMBAI BEFORE SHRI R. C. SHARMA , A M AND SHRI SANDEEP GOSAIN, J M M .A. NO . 698 /MUM/2017 (IN ITA NO 3394 /MUM/2013 ) ( / ASSESSMENT YEAR: 2006 - 07 ) EVERSMILE PROPERTIES PVT. LTD, CONWOOF HOUSE, GOREGAON MULUND LINK ROAD, GEN. A. K. VAIDYA MARG, GOREGAON (E), MUMBAI - 400 063 / VS. DCIT CIR 3(1), R. NO. 607, 6 TH FLOOR, AAYAKAR BHAWAN, M. K. R OAD MUMBAI - 400 020 ./ ./ PAN/GIR NO. AAACE1576C ( / APPELLANT ) : ( / RESPONDENT ) / APPELLANT BY : MS. AARTI VISSANJI , AR / RESPONDENT BY : SHRI RAJAT MITTAL , DR / DATE OF HEARING : 16/03 /201 8 / DATE OF PRONOUNCEMENT : 28/05/2018 / O R D E R P ER SANDEEP GOSAIN, J UDICIAL MEMBER : TH E PRESENT MISCELLANEOUS APPLICATION , A RISING OUT OF ITA NO. 3394 /MUM/2013 FOR ASSESSMENT YEAR 2006 - 07 , H AS BE EN FILED BY THE APPLICANT/ ASSESSEE FOR RECTIFICATION OF SOME MISTAKE S IN ORDER DATED 26.04 .2017 PASSED BY HO NBLE ITAT IN ITA NO. 3394 /MUM/2013. 2 M A NO. 698 /MUM/2017 (A. Y. 2006 - 07 ) EVERSMILE PROPERTIES PVT. LTD, 2 . WE HAVE HEARD THE COUNSELS FOR BOTH THE PARTIES ON THIS APPLICATION AND ALSO PERUSED THE RECORDS AND AFTER VERIFYING THE RECORDS AS WELL AS THE ORDER DATED 26.04 .17 IN ITA NO. 3394 /MUM/2013 FOR ASSESSMENT YEAR 2006 - 0 7 , WE FIND ERROR IN REPRODUCING THE ACTUAL GROUNDS OF APPEAL RAISED BY THE REVENUE , THEREFORE WE RECTIFY ACC ORDINGLY AS UNDER: - 1 ) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) WAS JUSTIFIED IN DELETING DISALLOWANCE OF RS. 3,45,82,683/ - MADE ON ACCOUNT OF PAYMENTS MADE TO AUTHORITY OF URBAN LAND CEILING, WITHOUT APPRECIATING THE FACT THAT THE PAYMENTS MADE WERE IN THE NATURE OF PENALTY AND NOT COMPENSATORY IN NATURE AND THEREFORE, THE SAME WERE NOT ALLOWABLE AS DEDUC TION U/S 37(1) OF THE I.T. ACT. 2) THE APPELLANT PRAYS THAT THE ORDER OF LD. CIT(A) ON THE ABOVE GROUND BE SET ASIDE AND THAT OF THE ASSESSING OFFICER BE RESTORED. 3) THE APPELLANT CRAVES LEAVE TO AMEND OR ALTER ANY GROUND OR ADD A NEW GROUND WHICH MAY BE NECESSARY. THEREFORE, I T IS ORDERED ACCORDINGLY. 3 . IN THE NET RESULT, THE MISCELLANEOUS APPLICATION FILED BY THE ASSESSEE STANDS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON 28 TH MAY 2018 SD/ - SD/ - ( R. C. SHARMA ) (SANDEEP GOSAIN) / ACCOUNTANT MEMBER / JUDICIAL MEMBER MUMBAI ; DATED : 28 /05 /201 8 3 M A NO. 698 /MUM/2017 (A. Y. 2006 - 07 ) EVERSMILE PROPERTIES PVT. LTD, SR.PS DHANANJAY. / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ( ) / THE CIT(A) 4. / CIT - CONCERNED 5. , , / DR, ITAT, MUMBAI 6. / GUARD F I LE / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUM BAI