URVI CHEMICALS & ALLIED INDUSTRIES LTD ( NOW MERGED WITH TOPSTAR MERCANTILE P. LTD), MUMBAI v. ITO 7(30(2), MUMBAI

CO 184/MUM/2010 | 2002-2003
Pronouncement Date: 06-10-2010 | Result: Dismissed

Appeal Details

RSA Number 18419923 RSA 2010
Assessee PAN AAACU1746Q
Bench Mumbai
Appeal Number CO 184/MUM/2010
Duration Of Justice 6 day(s)
Appellant URVI CHEMICALS & ALLIED INDUSTRIES LTD ( NOW MERGED WITH TOPSTAR MERCANTILE P. LTD), MUMBAI
Respondent ITO 7(30(2), MUMBAI
Appeal Type Cross Objection
Pronouncement Date 06-10-2010
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted Not Allotted
Tribunal Order Date 06-10-2010
Assessment Year 2002-2003
Appeal Filed On 30-09-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES C MUMBAI BEFORE SHRI R.S.SYAL AM AND SHRI V.DURGA RAO JM ITA NOS.2433 2434 2435 4994/MUM/2005 & 1538/MUM/ 2007 ASST.YEARS 1998-1999 2000-2001 2001-2002 2002-2 003 & 2003-2004 THE ASST/DY.COMMISSIONER OF INCOME TAX RANGE 7(3) MUMBAI. VS. M/S.URVI CHEMICALS AND ALLIED INDUSTRIES LIMITED ADMINISTRATIVE BUILDING 1 ST FLOOR MORARJEE MILLS COMPOUND DR.AMBEDKAR ROAD PAREL MUMBAI 400 012. PA NO.AAACU1746Q. (APPELLANT) (RESPONDENT) ITA NOS.1889 1890 1891/MUM/2005 & 1271/MUM/2007 ASST.YEARS 1998-1999 2000-2001 2001-2002 & 2003- 2004 CO NO.184/MUM/2010 : ASST.YEAR 2002-2003 (ARISING OUT OF ITA NO.4994/MUM/2005) M/S.URVI CHEMICALS AND ALLIED INDUSTRIES LIMITED ADMINISTRATIVE BUILDING 1 ST FLOOR MORARJEE MILLS COMPOUND DR.AMBEDKAR ROAD PAREL MUMBAI 400 012. VS. THE ASSTT.COMMISSIONER OF INCOME-TAX RANGE 7(3) ITO WARD 7(3)(2) MUMBAI. (APPELLANT) (RESPONDENT) REVENUE BY : SHRI A.K.SINHA (CIT-DR) ASSESSEE BY : S/SHRI J.D.MISTRI & M.D.INAMDAR O R D E R PER BENCH : THIS BATCH OF TEN APPEALS COMPRISES OF FIVE APPEALS BY THE REVENUE FOR ASSESSMENT YEARS 1998-99 2000-2001 2001-2002 200 2-2003 AND 2003-2004 AND FOUR CROSS APPEALS BY THE ASSESSEE FOR ASSESSMENT Y EARS 1998-99 2000-2001 2001- ITA NOS.2433/MUM/2005 & ORS. M/S.URVI CHEMICALS AND ALLIED INDUSTRIES LTD. 2 2002 AND 2003-2004 AND ONE CROSS OBJECTION FOR ASSE SSMENT YEAR 2002-2003. SINCE COMMON ISSUES HAVE BEEN RAISED IN THESE APPEALS WE ARE THEREFORE PROCEEDING TO DISPOSE THEM OFF BY THIS CONSOLIDATED ORDER FOR THE SAKE OF CONVENIENCE. 2. BEFORE GOING TO THE MERITS OF THE CASE IT WOULD BE RELEVANT TO NOTE THAT THE ASSESSEE FILED CROSS OBJECTION FOR ASSESSMENT YEAR 2002-2003 BELATEDLY WHICH IS TIME BARRED BY FOUR YEARS AND FIVE MONTHS. THE LEAR NED COUNSEL FOR THE ASSESSEE CONTENDED THAT THERE WAS A JUDGEMENT BY THE HONBLE SUPREME COURT IN THE CASE OF S.A. BUILDERS LIMITED VS. CIT [(2007) 288 ITR 1 (SC )] WHICH CAME INTO BEING AFTER THE PASSING OF THE IMPUGNED ORDER AND THAT IS THE R EASON FOR WHICH THE ASSESSEE FILED CROSS OBJECTION BELATEDLY. IT WAS PRAYED THAT THE DELAY BE CONDONED. THE LEARNED DEPARTMENTAL REPRESENTATIVE HOWEVER OPP OSED THE CONDONATION OF DELAY. 3. HAVING HEARD BOTH SIDES AND PERUSED THE RELEVANT MATERIAL ON RECORD WE FIND THAT THE AFORE-NOTED JUDGEMENT OF THE HONBLE SUPRE ME COURT WAS PASSED ON 14.12.2006. NO DOUBT THE IMPUGNED ORDER WAS PASSED ON 31.03.2005 I.E. BEFORE THE DATE OF JUDGEMENT BY THE HONBLE SUPREME COURT ST ILL THE ASSESSEE DID NOT CONSIDER IT EXPEDIENT TO FILE APPEAL OR CROSS OBJEC TION ON THE BASIS OF THIS JUDGEMENT ON THE ADVENT OF THIS JUDGMENT. THE PRESENT CROSS O BJECTION CAME TO BE FILED ON 30.09.2010 I.E. AFTER THE PERIOD OF AROUND FOUR YEA RS FROM THE DATE OF THE JUDGEMENT OF THE HONBLE SUPREME COURT. LAW ASSISTS THE PART IES WHO ARE VIGILANT OF THEIR RIGHTS AND NOT THOSE WHO SLEEP OVER IT. HERE IS A C ASE IN WHICH THE CROSS OBJECTION CAME TO BE FILED BELATEDLY BY AROUND FOUR AND HALF YEARS AND THE SOLE BASIS BEING THE RELIANCE ON THE JUDGEMENT OF THE HONBLE SUPREM E COURT IN THE CASE OF S.A.BUILDERS (SUPRA) DOES NOT IN THE GIVEN CIRCUMSTANCES SUPPORT THE CONDONATION OF DELAY. THE DELAY CAN BE CONDONED IF THERE IS SOME JUSTIFIABLE REASON FOR THE DELAY. EVEN IF WE ACCEPT THE VIEW POINT O F THE LD. AR THAT THE CROSS OBJECTION WAS PROMPTED FROM THE S.A. BUILDERS (SUPRA) CASE STILL THE DELAY OF ITA NOS.2433/MUM/2005 & ORS. M/S.URVI CHEMICALS AND ALLIED INDUSTRIES LTD. 3 AROUND FOUR YEARS IN FILING THE C.O. FROM THE DATE OF THIS JUDGMENT DOES NOT MERIT THE CONDONATION OF DELAY. UNDER SUCH CIRCUMSTANCES WE REFUSE TO CONDONE THE INORDINATE DELAY OF SO MANY YEARS IN PRESENTING THE CROSS OBJECTION OF THE ASSESSEE FOR ASSESSMENT YEAR 2002-2003 WHICH IS HEREBY DISM ISSED. 4. NOW WE COME TO THE OTHER NINE APPEALS. FIRST I SSUE RAISED IN ALL THESE CROSS APPEALS BY THE REVENUE AS WELL AS THE ASSESSEE IS A GAINST THE DISALLOWANCE OF INTEREST U/S.36(1)(III). BOTH THE SIDES ARE IN AGRE EMENT THAT SIMILAR DISALLOWANCE WAS MADE IN ASSESSMENT YEAR 1999-2000 WHICH CAME UP FOR ADJUDICATION BEFORE THE TRIBUNAL. VIDE ITS ORDER DATED 09.02.2009 IN ITA NO .6260/MUM/2003 THE TRIBUNAL HAS RESTORED THE MATTER TO THE FILE OF A.O. WITH CE RTAIN DIRECTIONS. RESPECTFULLY FOLLOWING THE PRECEDENT WE SET ASIDE THE IMPUGNED O RDER FOR THE YEARS IN QUESTION AND RESTORE THE MATTER TO THE FILE OF A.O. FOR DECI DING THIS ISSUE AFRESH IN ACCORDANCE WITH THE DIRECTIONS CONTAINED IN THE AFO RE STATED TRIBUNAL ORDER DECIDING IT IN ACCORDANCE WITH THE VIEW TAKEN BY THE TRIBUNA L IN OTHER YEARS. IN DECIDING THIS MATTER THE AO WILL ALSO CONSIDER THE IMPACT OF S.A.BUILDERS (SUPRA). 5. THE SECOND ISSUE IN SOME OF THE APPEALS IS AGAINST THE TAXING OF THE RENTAL INCOME ON PROTECTIVE BASIS. HERE ALSO BOTH THE SIDE S AGREE THAT SIMILAR ISSUE WAS RAISED IN THE A.YS. 1994-95 TO 1997-98 AND ALSO A.Y . 1999-2000 WHICH HAS BEEN RESTORED BY THE TRIBUNAL TO THE FILE OF A.O. FOR A FRESH DECISION GIVING CERTAIN DIRECTIONS. IN VIEW OF THE FACT THAT THE CIRCUMSTAN CES IN THE INSTANT YEARS ARE MUTATIS MUTANDIS SIMILAR TO THOSE ALREADY DECIDED BY THE TR IBUNAL RESPECTFULLY FOLLOWING THE PRECEDENT WE SET ASIDE THE IMPUGNED ORDERS ON THIS ISSUE AND DIRECT THE AO TO DECIDE IT IN ACCORDANCE WITH THE VIEW TAKEN BY THE TRIBUNAL IN ABOVE MENTIONED YEARS. ITA NOS.2433/MUM/2005 & ORS. M/S.URVI CHEMICALS AND ALLIED INDUSTRIES LTD. 4 6. IN THE RESULT ALL THE APPEALS BY THE REVENUE AN D FOUR APPEALS BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES AND THE CROSS OBJECTION OF THE ASSESSEE FOR ASSESSMENT YEAR 2002-2003 IS DISMISSED. ORDER PRONOUNCED ON THIS 6 TH DAY OF OCTOBER 2010. SD/- SD/- ( V.DURGA RAO ) ( R.S.SYAL ) JUDICIAL MEMBER ACC OUNTANT MEMBER MUMBAI : 6 TH OCTOBER 2010. DEVDAS* COPY TO : 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT CONCERNED 4. THE CIT(A) - XXIII MUMBAI. 5. THE DR/ITAT MUMBAI. 6. GUARD FILE. TRUE COPY. BY ORDER ASSISTANT REGISTRAR ITAT MUMBAI.