THE SHIPPING CORPORATION OF INDIA LTD.,MUMBAI V. ADDL. CIT (LTU), MUMBAI

MA 211/MUM/2024

AI Insights

The case involves The Shipping Corporation of India Ltd. (the appellant) contesting the exclusion of certain receipts from the total turnover of core activities, which affected the calculation of tax liabilities for the assessment year 2010-11. The receipts in question included reimbursements, sundry receipts, and profits from the sale of vessels and other assets, totaling approximately Rs. 1,75,18,04,418. The appellant argued that these should be included in the turnover for tax calculation purposes. Initially, the ITAT dismissed the ground as academic, but upon the appellant's request for reconsideration, the Tribunal agreed to re-evaluate this specific ground.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 470654 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 27 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 25-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 25-10-2024
• Assessment Year: 2010-2011
• Appeal Filed On: 29-08-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PUSHKARAJ BHANGEPATIL
• Assessee Lawyers: NITESH JOSHI

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “E”, MUMBAI BEFORE SHRI AMARJIT SINGH, ACCOUNTANT MEMBER AND SHRI RAHUL CHAUDHARY, JUDUCIAL MEMBER MA No. 211/Mum/2024 (Arising out of ITA No. 169/Mum/2021) Assessment Year: 2010-11 The Shipping Corporation of India Ltd. 245, Shipping House, Madam Cama Road, Nariman Point, Mumbai-400021. PAN: AAACT 1524 F Vs. Addl. CIT (LTU), Mumbai. (Appellant) (Respondent) Present for: Assessee by : Shri Nitesh Joshi Revenue by : Shri Pushkaraj Bhangepatil, Sr. DR Date of Hearing : 25.10.2024 Date of Pronouncement : 25.11.2024 O R D E R PER AMARJIT SINGH, ACCOUNTANT MEMBER: Vide miscellaneous application 211/Mum/2024, the assessee has brought to our notice that ITAT vide ITA No. 169/Mum/2021 dated 28.02.2024 while adjudicating ground no. 3 of the appeal held that ground of appeal no. 3 of the assessee has become academic and not required any adjudication, therefore, the same stand dismissed. However, the assessee in the miscellaneous application pointed out that ground no. 3 was not academic in nature and requires separate adjudication. MA No. 211/Mum/2024 The Shipping Corporation of India Ltd. 2 2. Heard both the sides and perused the material on record. The ground no. 3 of appeal filed by the assessee is reproduced as under: “The CIT(A) has erred in law and on facts and in circumstances of the case n excluding following receipts aggregating to Rs. 1,75,18,04,418/- while calculating total turnover from core activities thereby working out adjustment of 0.25% of turnover of core activities of ship at Rs. 43,79,511/- (175,18,04,418 x 0.25%) Particulars Amount Reimbursement of overhead for managed vessel 38,17,66,143 Sundry receipts 14,48,80,660 Profit on sale of vessels 122,51,29,951 Profit on sale of other assets 27,664 Total 1,75,18,04,418 3. The ground no. 2 of the appeal filed by the assessee is reproduced as under: “Ground No. 2 The CIT(A) has erred in taxing a sum aggregating to Rs. 3,87,01,556/- (being 80% of the sundry receipts amounting to Rs. 4,83,76,945/-) pertaining to the following receipts recorded under ‘sundry receipts’: Sl. No. Nature of receipt Amount 1 Liquidated damages 4,55,27,978 2 Refund of directors fees 21,83,638 3 Contribution to employees new 6,05,651 Post retirement medical scheme (PRMS) 4 Rent on furniture 56,694 5 Application money for right to information Act 2,984 Total 4,83,76,945 4. After perusal of the grounds of appeal as referred above, we find that the ground no. 3 of appeal was raised in the different MA No. 211/Mum/2024 The Shipping Corporation of India Ltd. 3 content from the ground no. 2 of appeal as to whether income recorded under the head ‘sundry receipts’ should from part of ‘profits from core activities, or not. We recall the order of the ITAT dated 28.02.2024 to the limited extent of adjudicating ground no. 3 of the appeal filed by the assessee as discussed. 5. In the result, miscellaneous application filed by the assessee is allowed. Order pronounced in the open court on 25.11.2024. Sd/- Sd/- (RAHUL CHADHARY) (AMARJIT SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai, Dated: 25.11.2024 Biswajit, Sr. P.S. Copy to: 1. The Appellant: 2. The Respondent: 3. The CIT, 4. The DR //True Copy// [ By Order Assistant Registrar ITAT, Mumbai Benches, Mumbai "