DCIT CEN CIR 10, MUMBAI v. KEYSTONE REALTORS P.LTD, MUMBAI

ITA 5628/MUM/2014 | 2007-2008
Pronouncement Date: 28-11-2017 | Result: Dismissed

Appeal Details

RSA Number 562819914 RSA 2014
Assessee PAN AAACK2499Q
Bench Mumbai
Appeal Number ITA 5628/MUM/2014
Duration Of Justice 3 year(s) 2 month(s) 23 day(s)
Appellant DCIT CEN CIR 10, MUMBAI
Respondent KEYSTONE REALTORS P.LTD, MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 28-11-2017
Appeal Filed By Department
Tags No record found
Order Result Dismissed
Bench Allotted A
Tribunal Order Date 28-11-2017
Assessment Year 2007-2008
Appeal Filed On 05-09-2014
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL BENCH A MUM BAI BEFORE SHRI G.S. PANNU ACCOUNTANT MEMBER AND SHRI PAWAN SINGH JUDICIAL MEMBER ITA NO.5628/MUM/2014 (ASSESSMENT YEAR- 2007-08) DCIT CENTRAL CIRCLE-10 ROOM NO. 802 8 TH FLOOR OLD CGO ANNEXE BLDG. M.K. ROAD MUMBAI-400020. VS. M/S. KEYSTONE REALTORS PVT. LTD. NATRAJ M.V. ROAD JUNCTION W.E. HIGHWAY ANDHERI (E) MUMBAI 400069. PAN: AAACK2499Q (APPELLANT) (RESPONDENT) REVENUE BY : SHRI R.P. MEENA (CIT -DR) ASSESSEE BY : SHRI NARESH KUMAR (DR) DATE OF HEARING : 28.11.2017 DATE OF PRONOUNCEMENT : 28.11.2017 ORDER UNDER SECTION 254(1) OF INCOME TAX ACT PER PAWAN SINGH JUDICIAL MEMBER : THIS APPEAL BY THE REVENUE UNDER SECTION 253 OF THE INCOME TAX ACT IS DIRECTED AGAINST THE ORDER OF LD. COMMISSIONER OF I NCOME TAX [LD. CIT(A)] (APPEALS)-37 MUMBAI DATED 25.06.2014 FOR ASSESSMEN T YEAR (AY) 2007-08. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APP EAL: (I) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF T HE CASE AND IN LAW THE LD. CIT(A) WAS RIGHT IN DELETING ADDITION OF RS. 2 37 68 669/- MADE U/S. 14A BY PLACING RELIANCE ON THE DECISION OF THE HON BLE ITAT MUMBAI SPECIAL BENCH IN THE CASE OF AL CARGO LOGISTICS LIM ITED (2010) 23 TAXMAN.COM 103 (MUM) (SB) WITHOUT APPRECIATING THE FACTS THAT THE REVENUE HAS NOT ACCEPTED THE SAID DECISION AND IT H AS FILED APPEAL AGAINST THE SAME BEFORE THE HONBLE BOMBAY HIGH COURT WHIC H IS STILL PENDING. 2. BRIEF FACTS OF THE CASE ARE THAT A SEARCH AND SE IZURE ACTION WAS CARRIED OUT IN CASE OF RUSTOMJEE-EVERSHINE GROUP ON 21.10.201 0. THE CASE OF ASSESSEE WAS 2 ITA NO.5628/M/2014 M/S. KEYSTONE REALTORS PVT. LT D. ALSO COVERED IN THE SEARCH ACTION. NOTICE UNDER SEC TION 153A DATED 27.09.2011 WAS ISSUED TO THE ASSESSEE. IN RESPONSE TO THE NOTI CE UNDER SECTION 153A THE ASSESSEE FILED RETURN OF INCOME DECLARING TOTAL INC OME OF RS. 1 519 44 849/-. THE ASSESSMENT WAS COMPLETED UNDER SECTION 143(3) R.W.S . 153A ON 31.03.2013. THE ASSESSING OFFICER (AO) WHILE PASSING THE ASSESSMENT ORDER BESIDES OTHER ADDITION AND DISALLOWANCE DISALLOWED RS. 2 37 68 66 9/- UNDER SECTION 14A. ON APPEAL BEFORE THE LD. CIT(A) THE DISALLOWANCE UNDE R SECTION 14A WAS DELETED. THE LD. CIT(A) DELETED THE DISALLOWANCE UNDER SECTI ON 14A HOLDING THAT IS WAS NOT BASED ON INCRIMINATING MATERIAL FOUND DURING TH E COURSE OF SEARCH CONDUCTED ON 21.10.2010. THUS AGGRIEVED BY THE ORDER OF LD. CIT(A) THE REVENUE HAS FILED THE PRESENT APPEAL BEFORE US. 3. WE HAVE HEARD THE LD. DEPARTMENTAL REPRESENTATIV E (DR) FOR THE REVENUE AND LD. AUTHORIZED REPRESENTATIVE (AR) OF THE ASSES SEE AND PERUSED THE MATERIAL AVAILABLE ON RECORD. AT THE OUTSET OF HEARING THE LD. AR OF THE ASSESSEE ARGUED THAT THE GROUNDS OF APPEAL RAISED BY REVENUE IS COV ERED AGAINST THE REVENUE AND IN FAVOUR OF ASSESSEE BY THE DECISION OF SPECIAL BE NCH IN ALL CARGO LOGISTIC LTD (2010) 23 TAXMAN.COM 103(MUM)(SB) WHICH HAS BEEN AF FIRMED BY HONBLE BOMBAY HIGH COURT IN ITA NO.1969 OF 2013 DATED 21.0 4.2015 ALONG WITH CASE OF CONTINENTAL WAREHOUSING LTD. IN ITA NO. 523 OF 2013 AS THE DISALLOWANCE WAS NOT BASED ON INCRIMINATING MATERIAL SEIZED DURI NG THE SEARCH ACTION. THE LD. CIT(A) GRANTED THE RELIEF ON THE BASIS OF DECISION OF SPECIAL BENCH OF TRIBUNAL IN CASE OF ALL CARGO LOGISTICS LTD.(SUPRA). THE LD. CI T(A) AFTER HEARING THE 3 ITA NO.5628/M/2014 M/S. KEYSTONE REALTORS PVT. LT D. SUBMISSION OF LD. DR FOR THE REVENUE FAIRLY CONCEDE D THAT THE ADDITION/DISALLOWANCE MADE BY AO UNDER SECTION 40A WAS NOT BASED ON INCRIMINATING MATERIAL. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSION OF THE P ARTIES AND HAVE GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. WE HAVE NO TED THAT THE ASSESSMENT UNDER SECTION 143(3) WAS COMPLETED ON 30.11.2009. SEARCH ACTION IN CASE OF RUSTOMJEE-EVERSHINE GROUP WAS MADE ON 21.10.2010. THE CASE OF ASSESSEE WAS ALSO COVERED IN THE SAID SEARCH. THE AO WHILE M AKING THE DISALLOWANCE UNDER SECTION 14A NOWHERE RECORDED THAT DISALLOWAN CE UNDER SECTION 14A IS BASED ON INCRIMINATING MATERIAL FOUND DURING THE SE ARCH ACTION CARRIED ON 21.10.2010. THE LD. CIT(A) WHILE CONSIDERING THE CO NTENTION OF ASSESSEE RELIED UPON THE DECISION OF AL CARGO GLOBAL LOGISTICS LTD. (2010) 23 TAXMANN.COM 103 (MUM) (SB) DATED 06.07.2012 AND THE DECISION OF HON BLE DELHI HIGH COURT IN CASE OF CIT VS. ANIL KUMAR BHATIA (2012) (82 CCH 11 3) (DHC) AND DELETED THE DISALLOWANCE UNDER SECTION 14A OF THE ACT. CONSIDE RING THE FACT THAT NO ADDITION COULD BE MADE IN UNABATED ASSESSMENT IN ABSENCE OF INCRIMINATING MATERIAL WE DO NOT FIND ANY ILLEGALITY OR INFIRMITY IN THE ORDE R PASSED BY LD. CIT(A). 6. IN THE RESULT APPEAL FILED BY REVENUE IS DISMI SSED. . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 28 TH DAY OF NOVEMBER 2017. SD/- SD/- (G.S. PANNU) (PAWAN SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI; DATED 28 /11/2017 S.K.PS COPY OF THE ORDER FORWARDED TO : 4 ITA NO.5628/M/2014 M/S. KEYSTONE REALTORS PVT. LT D. BY ORDER (ASSTT.REGISTRAR) ITAT MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A) MUMBAI. 4. CIT 5. DR ITAT MUMBAI 6. GUARD FILE. //TRUE COPY/