MAHINDRA & MAHINDRA LIMITED , MUMBAI V. ADDITIONAL COMMISSIONER OF INCOME-TAX, RANGE -2(2), MUMBAI

MA 798/MUM/2017

• Counselvise Citation: [2018] 124 COUNSELVISE.COM (IT) 6447 (ITAT-MUMBAI)
• Duration Of Justice: 5 month(s) 22 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 09-04-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2001-2002
• Appeal Filed On: 18-10-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Revenue expenditure

Judgement Text

, INCOME-TAX APPELLATE TRIBUNAL -BBENCH MUMBAI , ,, , , , , , , ,, , BEFORE S/SHRI RAJENDRA,ACCOUNTANT MEMBER AND C N PRASAD,JUDICIAL MEMBER MA/798/MUM/2017 (ARISING OUT OF ./I.T.A./7581/MUM/2011, /AY.S: 2001-02) MAHINDRA & MAHINDRA LIMITED MAHINDRA TOWERS, GROUND FLOOR, CORPORATION TAXATION, WORLI ROAD NO.13, WORLI,MUMBAI-400 018. PAN:AAACM 3025 E VS. ADDL. CIT, RANGE-2(2) AAYAKAR BHAVAN, M.K. MARG MUMBAI-400 020. ( /APPELLANT) ( / RESPONDENT) REVENUE BY : SHRI RAJGURU M.V. ASSESSEE B Y: SHRI M.P. MAHAJANI-AR / DATE OF HEARING: 09.04.2018 / DATE OF PRONOUNCEMENT: 09.04.2018 /ORDER - PER RAJENDRA, AM - VIDE ITS APPLICATION,DATED 18/10/2017,THE ASSESSEE HAS STATED THAT WHILE DECIDING GROUND NO.2 WITH REGARD TO DEVELOPMENT EXPENSES IN RESPECT OF HORIZON-III PROJECT FOR TRACTORS, THE TRIBUNAL HAD NOT FOLLOWED ITS ORDER FOR ASSESSMENT YEAR (AY.) 2006-07, THAT SIMILAR GROUND WAS ALLOWED WITH REGARD TO STAFF AND ADMINISTRATIVE COSTS FOR AY. 2000-01 ALSO, THAT FOR THE YEAR UNDER CONSIDERATION THE STAFF AND ADMINISTRATI VE COSTS SHOULD BE ALLOWED AS REVENUE EXPENDITURE, THAT THE TRIBUNAL HAD RESTORED BACK TH E ENTIRE DEVELOPMENT EXPENDITURE OF RS.17.93 CRORES TO THE FILE OF ASSESSING OFFICER (A .O) FOR THE YEAR UNDER CONSIDERATION. 2. BEFORE US, THE AUTHORISED REPRESENTATIVE(AR)REITERA TED THE ARGUMENTS THAT ARE PART OF THE APPLICATION.THE DEPARTMENTAL REPRESENTATIVE(DR)LEFT THE ISSUE TO THE DISCRETION OF THE BENCH. 3. WE FIND THAT IDENTICAL ISSUE WAS DELIBERATED UPON A ND DECIDED BY THE TRIBUNAL FOR THE AY.S 2006-07 AND 2000-01,THAT IN BOTH THOSE YEARS THE ST AFF COSTS WERE ALLOWED AS REVENUE EXPENDITURE,THAT FOR THE YEAR UNDER CONSIDERATION E NTIRE AMOUNT OF RS.17.93 CRORES WAS RESTORED BACK TO THE FILE OF AO. PARTLY MODIFYING O UR ORDER, WE DIRECT THE AO TO ALLOW STAFF COSTS OF RS.3.94 CRORES AS REVENUE EXPENDITURE FOR THE YEAR UNDER CONSIDERATION. THE AO HAS TO DECIDE THE ALLOWABILITY OF REMAINING EXPENDITURE AS PER THE ORIGINAL ORDER. AS A RESULT,MA FILED BY THE ASSESSEE STANDS ALLOWED. ! . MA NO.798/M/17 MAHINDRA & MAHINDRA LTD. 2 ORDER PRONOUNCED IN T HE OPEN COURT ON 9 TH ,APRIL, 2018. ' # 9 $ ,2018 SD/- SD/- ( / C N PRASAD ) ( / RAJENDRA ) ' %& / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; /DATED : 09/04/2018. JV.SR.PS. / COPY OF THE ORDER FORWARDED TO : 1. APPELLANT / 2. RESPONDENT / 3. THE CONCERNED CIT(A)/ , 4. THE CONCERNED CIT / 5. DR L BENCH, ITAT, MUMBAI / , , . . . 6. GUARD FILE/ //TRUE COPY// / BY ORDER, / DY./ASST. REGISTRAR , /ITAT, MUMBAI.