JAMES MACKIONTOSH & CO. P. LTD, MUMBAI v. DCIT CIR 2(2), MUMBAI

ITA 2054/MUM/2010 | 2005-2006
Pronouncement Date: 31-01-2011 | Result: Partly Allowed

Appeal Details

RSA Number 205419914 RSA 2010
Assessee PAN AAACJ0988P
Bench Mumbai
Appeal Number ITA 2054/MUM/2010
Duration Of Justice 10 month(s) 19 day(s)
Appellant JAMES MACKIONTOSH & CO. P. LTD, MUMBAI
Respondent DCIT CIR 2(2), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 31-01-2011
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted I
Tribunal Order Date 31-01-2011
Date Of Final Hearing 27-01-2011
Next Hearing Date 27-01-2011
Assessment Year 2005-2006
Appeal Filed On 12-03-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES I MUMBAI BEFORE SHRI. D.K. AGARWAL (J.M.) AND SHRI T.R. SOOD (A.M.) ITA NO.2054/MUM/2010 ASSESSMENT YEAR : 2005-2006 JAMES MACKIONTOSH & CO. PVT. LTD. DARABSHAW HOUSE 3 RD FLR. S.V. RD. BELLARD ESTATE MUMBAI 400 001. PAN : AAACJ0988P VS. THE DEPUTY COMMISSIONER OF INCOME-TAX CIR-2(2) AAYAKAR BHAVAN MUMBAI 400 020. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI DR. K. SHIVARAM & AJAY SINGH RESPONDENT BY : SHRI S.K. SINGH O R D E R PER D.K. AGARWAL J.M. THIS APPEAL PREFERRED BY THE ASSESSEE IS DIRECTED AGAINST T HE ORDER DATED 29.1.2010 PASSED BY THE LD CIT(A) FOR THE ASSESSMENT YEAR 2005-06. 2. BRIEFLY STATED FACTS OF THE CASE ARE THAT THE ASSESSEE COM PANY IS A SHIPPING AGENT FILED RETURN DECLARING INCOME OF ` 37 76 040/-. HOWEVER THE ASSESSMENT WAS COMPLETED AT INCOME OF ` 80 54 560/- WHEREIN THE ASSESSING OFFICER TREATED INTEREST INCOME OF R S.84.75 LAKHS AS INCOME FROM OTHER SOURCES IN PLACE OF BUSINESS INCOME MADE DISALLOWANCE OF PENALTY ` 7 930 DISALLOWANCE OF SALE OF SPEED BOAT ` 6 88 181/- DISALLOWANCE U/S.36(I)(VA) RS.4 22 172/- DISALLOWANCE U/S.14A RS.1 79 006/- DISALLOWANCE OF DEPRECIATION RS.16 56 964/- AND DISALLOWANCE OF 150 TH YEAR ANNIVERSARY CELEBRATION EXPENSES ITA NO.2054/MUM/2010 A.Y.: 2005-2006 2 RS.13 24 253/- VIDE ORDER DATED 30.11.2007 PASSED U/S.1 43(3) OF THE INCOME TAX ACT (THE ACT). 3. ON APPEAL THE LD CIT(A) IN THE ABSENCE OF ANY EFFE CTIVE COMPLIANCE BY THE ASSESSEE PASSED EX PARTE ORDER DATED 29.1 .2010. THE LEARNED CIT(A) WHILE DIRECTING THE ASSESSING OFFICER TO WORK OUT DISALLOWANCE U/S.14A AS PER RULE 8D CONFIRMED THE ADDITIONS/DISALLOWANCES MADE BY THE ASSESSING OFFICER. 4. BEING AGGRIEVED BY THE ORDER OF THE LEARNED CIT( A) THE ASSESSEE IS IN APPEAL BEFORE US CHALLENGING IN ALL THE GROUNDS T HE EX PARTE ORDER PASSED BY THE LD CIT(A) IN CONFIRMING THE ACTION OF T HE ASSESSING OFFICER IN TREATING INTEREST INCOME OF RS.84.75 LAKHS AS INCOME FROM OTHER SOURCES IN PLACE OF BUSINESS INCOME SUSTENANCE OF DISAL LOWANCE U/S.36(I)(VA) RS.4 22 172/- SUSTENANCE OF DISALLOWANCE U/ S.14A RS.1 79 006/- DEPRECIATION RS.16 56 964/- AND 150 TH YEAR ANNIVERSARY CELEBRATION EXPENSES RS.13 24 253/-. 5. AFTER HEARING THE RIVAL PARTIES AND PERUSING THE MATERIAL AVAILABLE ON RECORD WE FIND THAT DESPITE REPEATED OP PORTUNITIES GIVEN TO THE ASSESSEE THERE WAS NO EFFECTIVE APPEARANCE PUT IN BY THE ASSESSEE AND HENCE THE LD CIT(A) CONFIRMED THE ADDITIONS/DISALLOWANCES MADE BY THE ASSESSING OFFICER AS A BOVE. WE DO AGREE THAT THE ASSESSEE DOES NOT DESERVE ANY CLEMENCY YE T THE MATTER BEING QUITE CONTENTIOUS AND THE MANY ISSUES ARE INVOLVED IT WOULD BE BETTER IF WE HAVE THE BENEFIT OF THE REASON ED FINDINGS OF THE LD CITA). ACCORDINGLY WE RESTORE THE MATTER TO THE F ILE OF THE LEARNED CIT(A) DIRECTING HIM TO GIVE ONE MORE OPPORTUNITY TO ASSESSEE TO PROVE HIS CASE. THE LEARNED CIT(A) ON THE ISSUE OF DI SALLOWANCE U/S.14A SHALL ALSO CONSIDER THE RECENT DECISION OF HONBLE J URISDICTIONAL ITA NO.2054/MUM/2010 A.Y.: 2005-2006 3 HIGH COURT IN GODREJ & BOYCE MFG. CO. LTD. VS. DCIT [ 2010] 328 ITR 81 (BOM). IT IS MADE CLEAR THAT IF THE ASSESSEE REMAIN S RECALCITRANT THE LEARNED CIT(A) SHALL BE AT LIBERTY TO DRAW ADVER SE INFERENCE AS HE DEEMS FIT AND DECIDE THE ISSUES ACCORDINGLY. THE GROUNDS TAKEN BY THE ASSESSEE ARE THEREFORE PARTLY ALLOWED FOR STATISTICAL PURPOSES. 6. IN THE RESULT ASSESSEES APPEAL STANDS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THIS 31 ST DAY OF JANUARY 2011. SD/- (T.R. SOOD) ACCOUNTANT MEMBER SD/- (D.K. AGARWAL) JUDICIAL MEMBER MUMBAI DATED 31 ST JANUARY 2011. JANHAVI COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. COMMISSIONER OF INCOME TAX (APPEALS)- MUM BAI 4. COMMISSIONER OF INCOME TAX CITY- MUMBAI 5. DEPARTMENTAL REPRESENTATIVE BENCH MUMBAI //TRUE COPY// BY ORDER ASSTT. REGISTRAR ITAT MUMBAI