EVEREST BRAND SOLUTIONS P. LTD ( FORMERLY KNOWN AS EVEREST INTEGRATED COMMUNICATION . LTD), MUMBAI v. DCIT CIR 1(1), MUMBAI

ITA 2524/MUM/2010 | 2001-2002
Pronouncement Date: 15-07-2011 | Result: Allowed

Appeal Details

RSA Number 252419914 RSA 2010
Assessee PAN AAACE6132C
Bench Mumbai
Appeal Number ITA 2524/MUM/2010
Duration Of Justice 1 year(s) 3 month(s) 15 day(s)
Appellant EVEREST BRAND SOLUTIONS P. LTD ( FORMERLY KNOWN AS EVEREST INTEGRATED COMMUNICATION . LTD), MUMBAI
Respondent DCIT CIR 1(1), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 15-07-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted F
Tribunal Order Date 15-07-2011
Date Of Final Hearing 30-06-2011
Next Hearing Date 30-06-2011
Assessment Year 2001-2002
Appeal Filed On 31-03-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH F MUMBAI. BEFORE SHRI P.M. JAGTAP ACCOUNTANT MEMBER AND SMT. ASHA VIJAYRAGHAVAN JUDICIAL MEMBER. I.T.A. NO.2524/MUM/2010 ASSESSMENT YEAR : 2001-02. EVEREST BRAND SOLUTIONS PVT. LTD. DY. COMMISSIONER OF (FORMERLY KNOWN AS EVEREST INTEGRATED VS . INCOME TAX COMMUNICATIONS PVT. LTD.) CIRCLE-1(1) MUMBAI. COLLAR PACK HOUSE 43 MAROL CO-OP. INDUSTRIAL ESTATE OFF. M.V. ROAD ANDHERI (EAST) MUMBAI 400 059. PAN AAACE 6132C APPELLANT.. RESPONDENT. APPELLANT BY : SHRI PANKAJ JAIN. RESPONDENT BY : SHRI T.T. JACOB. O R D E R. PER P.M. JAGTAP A.M. THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF LEARNED CIT(APPEALS)-1 MUMBAI DATED 12-01-2010 AND THE GRI EVANCE OF THE ASSESSEE AS PROJECTED THEREIN IS THAT THE LEARNED CIT(APPEALS) HAS NOT ADJUDICATED UPON THE ISSUE RAISED IN GROUND NO.2 RELATING TO THE DISALLO WANCE OF RS.39 37 682/- MADE BY THE AO U/S 40A(2)(B) OUT OF DEPUTATION/SECONDMEN T CHARGES PAID TO REDIFFUSION DY & R PVT.LTD. 2. THE ASSESSEE IN THE PRESENT CASE IS A COMPANY WH ICH FILED ITS RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION ON 30-10-20 01 DECLARING A TOTAL INCOME OF RS.2 78 72 290/-. 3. IN THE ASSESSMENT ORIGINALLY COMPLETED U/S 143(3 ) VIDE AN ORDER DATED 30- 01-2004 THE TOTAL INCOME OF THE ASSESSEE WAS ASSES SED BY THE AO AT 2 RS.3 56 88 162/-. SUBSEQUENTLY THE SAID ASSESSMENT WAS REOPENED BY THE AO BY ISSUING NOTICE U/S 148 ON 28-03-2008 AFTER RECORDIN G THE REASONS AND AFTER OBTAINING THE REQUIRED APPROVAL FROM THE CONCERNED CIT. THEREAFTER REASSESSMENT U/S 143(3) READ WITH SECTION 147 WAS COMPLETED BY T HE AO VIDE AN ORDER DATED 31-12-2008 WHEREIN ADDITION OF RS.39 37 682/- WAS M ADE TO THE TOTAL INCOME OF THE ASSESSEE ON ACCOUNT OF DISALLOWANCE U/S 40A(2)( B) OUT OF DEPUTATION/SECONDMENT CHARGES PAID TO REDIFFUSION DY & R PVT.LTD. AGAINST THE SAID ORDER AN APPEAL WAS PREFERRED BY THE ASSESSEE BEFORE THE LEARNED CIT(APPEALS) CHALLENGING THE VALIDITY OF REASSESSME NT MADE BY THE AO U/S 143(3) READ WITH SECTION 147 AS WELL AS DISPUTING THE ADDI TION OF RS.39 37 682/- MADE THEREIN BY WAY OF DISALLOWANCE U/S 40A(2)(B). AFTE R CONSIDERING THE SUBMISSIONS MADE ON BEHALF OF THE ASSESSEE AND MATERIAL AVAILA BLE ON RECORD THE LEARNED CIT(APPEALS) FOUND MERIT ON THE STAND TAKEN BY THE ASSESSEE ON THE PRELIMINARY ISSUE CHALLENGING THE VALIDITY OF REASSESSMENT MADE BY THE AO U/S 143(3) READ WITH SECTION 147. ACCORDINGLY HE DECIDED THE SAID I SSUE IN FAVOUR OF THE ASSESSEE AND CANCELLED THE REASSESSMENT MADE BY THE AO. KEEP ING IN VIEW HIS DECISION ON THE PRELIMINARY ISSUE CANCELING THE REASSESSMENT MA DE BY THE AO THE LEARNED CIT(APPEALS) DID NOT ADJUDICATE UPON GROUND NO.2 RA ISED BY THE ASSESSEE DISPUTING THE ADDITION MADE U/S 40A(2)(B) ON MERIT HOLDING THAT THE SAME HAS BECOME INFRUCTUOUS. AGGRIEVED BY THE ORDER OF THE L EARNED CIT(APPEALS) THE ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE TRI BUNAL. 4. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D ALSO PERUSED THE RELEVANT MATERIAL ON RECORD. AS SUBMITTED BY THE LE ARNED COUNSEL FOR THE ASSESSEE THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AS A MAT TER OF ABUNDANT PRECAUTION TO TAKE CARE OF A SITUATION WHERE THE ACTION OF THE LE ARNED CIT(APPEALS) IN CANCELING THE REASSESSMENT MADE BY THE AO IS CHALLENGED BY TH E REVENUE. HE HAS SUBMITTED THAT IF THE REVENUE HAS NOT FILED ANY APPEAL BEFORE THE TRIBUNAL AGAINST THE IMPUGNED ORDER OF THE LEARNED CIT(APPEALS) CHALLENG ING THE SAID ACTION THIS APPEAL FILED BY THE ASSESSEE WOULD BECOME INFRUCTUO US AND THE SAME CAN BE 3 DISMISSED ACCORDINGLY. IN THIS REGARD THE LEARNED DR HAS FILED A LETTER STATING THEREIN THAT THE DEPARTMENT HAS NOT FILED ANY APPEA L AGAINST THE IMPUGNED ORDER OF THE LEARNED CIT(APPEALS) CHALLENGING THE ACTION OF THE LEARNED CIT(APPEALS) CANCELING THE REASSESSMENT AS INFORMED TO HIM BY TH E CONCERNED AO. CONSEQUENTLY THE ISSUE RAISED BY THE ASSESSEE IN T HIS APPEAL RELATING TO ITS ALTERNATIVE CLAIM HAS BECOME INFRUCTUOUS AND THE SA ID APPEAL IS LIABLE TO BE DISMISSED AS RIGHTLY SUBMITTED BY THE LEARNED COUNS EL FOR THE ASSESSEE. WE ORDER ACCORDINGLY. 5. IN THE RESULT THE APPEAL OF THE ASSESSEE IS DIS MISSED. ORDER PRONOUNCED ON THIS 15 TH DAY OF JULY 2011. SD/- SD/- (ASHA VIJAYRAGHAVAN)) (P.M. JAGTAP) JUDICIAL MEMBER. ACCOUNTANT MEMBER. MUMBAI DATED: 15 TH JULY 2011. WAKODE COPY FORWARDED T; : 1. APPELLANT. 2. RESPONDENT. 3. C.I.T. 4. CIT(APPEALS) 5. D.R. ITAT MUMBAI. 6. GUARD FILE. //TRUE COPY// BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES MUMBAI.