DCIT 1(1), MUMBAI v. GANESH BENZOPLAST LTD, MUMBAI

ITA 5784/MUM/2010 | 1998-1999
Pronouncement Date: 02-04-2014 | Result: Dismissed

Appeal Details

RSA Number 578419914 RSA 2010
Assessee PAN AAACG1259J
Bench Mumbai
Appeal Number ITA 5784/MUM/2010
Duration Of Justice 3 year(s) 8 month(s) 16 day(s)
Appellant DCIT 1(1), MUMBAI
Respondent GANESH BENZOPLAST LTD, MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 02-04-2014
Appeal Filed By Department
Order Result Dismissed
Bench Allotted G
Tribunal Order Date 02-04-2014
Date Of Final Hearing 08-05-2014
Next Hearing Date 08-05-2014
Assessment Year 1998-1999
Appeal Filed On 16-07-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL G B ENCH MUMBAI !'# $ % BEFORE SHRI VIJAY PAL RAO JM AND SHRI N.K. BIL LAIYA AM ./ I.T.A. NO.5784/MUM/2010 ( & & & & / ASSESSMENT YEAR :1998-99 THE DCIT 1(1) AAYAKAR BHAVAN MUMBAI-400 020 / VS. M/S. GANESH BENZOPLAST LTD. 1 ST FLOOR DENA BLDG. 53 M.K. ROAD MARINE LINES (E) MUMBAI-400 002 ' $ ./ ( ./ PAN/GIR NO. :AAACG 1259J ( ') / APPELLANT ) .. ( *+') / RESPONDENT ) ') / APPELLANT BY: SHRI KISHORE DHULE *+') - / RESPONDENT BY: SHRI M. SUBRAMANIAN - ./$ / DATE OF HEARING : 02.04.2014 01& - ./$ / DATE OF PRONOUNCEMENT : 02.04.2014 2 / O R D E R PER N.K. BILLAIYA AM: THIS IS AN APPEAL BY THE REVENUE AGAINST THE ORDER OF THE LD. CIT(A)-1 MUMBAI DT.23.3.2010 PERTAINING TO A.Y. 19 98-99. 2. THE SHORT GRIEVANCE OF THE REVENUE IS THAT THE L D. CIT(A) ERRED IN DELETING THE ADJUSTMENTS MADE BY THE AO IN COMPUTIN G THE BOOK PROFIT U/S. 115JA OF THE ACT OVERLOOKING THE FACT THAT THE SHARE ISSUE EXPENSES WERE CAPITAL IN NATURE AND NO REVISED RETURN WAS F ILED BY THE ASSESSEE FOR REVISED COMPUTATION OF PROFIT U/S. 115JA. ITA NO. 5784/MUM/2010 2 3. AT THE VERY OUTSET THE LD. COUNSEL FOR THE ASSE SSEE STATED THAT THE GRIEVANCE OF THE REVENUE IS SQUARELY COVERED IN FAV OUR OF THE ASSESSEE BY THE ORDER OF THE TRIBUNAL IN ASSESSEES OWN CASE FO R A.Y. 1999-2000 VIDE ITA NO. 6731/MUM/2010. 4. THE LD. DEPARTMENTAL REPRESENTATIVE FAIRLY CONCE DED TO THIS. 5. WE HAVE CAREFULLY PERUSED THE ORDERS OF THE LOWE R AUTHORITIES AND THE ORDER OF THE TRIBUNAL FOR A.Y. 1999-2000. WE F IND THAT AN IDENTICAL ISSUE WAS CONSIDERED BY THE TRIBUNAL IN ITA NO. 673 1/M/2010 AND AT PARA-8 OF ITS ORDER THE TRIBUNAL HELD AS UNDER: WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUS ED THE ORDERS OF THE LOWER AUTHORITIES. WE FIND THAT THE A SSESSEE COMPANY HAS INADVERTENTLY ADDED SHARE ISSUE EXPENSES WHILE CALCULATING INCOME U/S. 115JA. IT IS NOT IN DISPUTE THAT SHARE ISSUE EXPENSES ARE IN THE NATURE OF CRYSTALLIZED LOSSES INCIDENTAL TO ASSESSEES BUSINESS AND THE SAME ARE THEREFORE DEDUCTIBLE IN T HE COMPUTATION OF MINIMUM ALTERNATIVE TAX U/S. 115JA OF THE ACT. WE THEREFORE DO NOT FIND ANY REASON TO INTERFERE WITH THE FINDIN GS OF THE LD. CIT(A). FINDINGS OF THE LD. CIT(A) ARE CONFIRMED. 6. FACTS AND ISSUE BEING IDENTICAL RESPECTFULLY FO LLOWING THE DECISION OF THE CO ORDINATE BENCH WE DISMISS THE APPEAL OF THE REVENUE. 7. IN THE RESULT THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 2 ND APRIL 2014 . SD/- SD/- (VIJAY PAL RAO ) (N.K. BILLAIYA) /JUDICIAL MEMBER $ / ACCOUNTANT MEMBER MUMBAI; 3 DATED 02.04.2014 . . ./ RJ SR. PS ITA NO. 5784/MUM/2010 3 2 2 2 2 - -- - *. *. *. *. 4&. 4&. 4&. 4&. / COPY OF THE ORDER FORWARDED TO : 1. ') / THE APPELLANT 2. *+') / THE RESPONDENT. 3. 5 ( ) / THE CIT(A)- 4. 5 / CIT 5. 67 *. / DR ITAT MUMBAI 6. 78 9 / GUARD FILE. 2 2 2 2 / BY ORDER +. *. //TRUE COPY// : :: : / ; ; ; ; (DY./ASSTT. REGISTRAR) / ITAT MUMBAI