KONECRANES PRIVATE LIMITED, MUMBAI v. DEPUTY COMMISSIONER OF INCOME TAX 15(3)(1), MUMBAI

ITA 7245/MUM/2017 | 2013-2014
Pronouncement Date: 16-03-2021 | Result: Dismissed

Appeal Details

RSA Number 724519914 RSA 2017
Assessee PAN AAACW0328C
Bench Mumbai
Appeal Number ITA 7245/MUM/2017
Duration Of Justice 3 year(s) 2 month(s) 25 day(s)
Appellant KONECRANES PRIVATE LIMITED, MUMBAI
Respondent DEPUTY COMMISSIONER OF INCOME TAX 15(3)(1), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 16-03-2021
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted K
Tribunal Order Date 16-03-2021
Last Hearing Date 17-01-2019
First Hearing Date 17-01-2019
Assessment Year 2013-2014
Appeal Filed On 21-12-2017
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL (VIRTUAL COURT) K BENCH MUMBAI BEFORE SHRI C.N. PRASAD HON'BLE JUDICIAL MEMBER AND SHRI M. BALAGANESH HON'BLE ACCOUNTANT MEMBER ITA NO . 7245 /MUM/20 17 (A.Y : 2013 - 14) M /S. KONECRANES PRIVATE LIMITED A KER SOLUTIONS BUILDING 3 RD FLOOR S URVEY NO - 75/2/3 BANER ROAD PUNE MAHARASHTRA - 411045 PAN: AAACW0328C V. DCIT - 15 ( 3 )( 1) ROO M NO 473 AAYAKAR BHAVAN NEW MARINE LINES MUMBAI - 400 020 (APPELLANT) (RESPONDENT) ASSESSEE BY : S HRI KARAN M EHTA DEPARTMENT BY : SHRI SUNI L D ESHPANDE & S HRI SUSHIL KUMAR M ISHRA DATE OF HEARING : 16.03.2021 DATE OF PRONOUNCEMENT : 16.03.2021 O R D E R PER C.N. PRASAD (JM) 1. TH IS APPEAL IS FILED BY THE ASSESSEE AGAINST DIRE CTION OF DISPUTE R ESOLUTION P ANEL - 1 MUMBAI [HEREINAFTER IN SHORT DR P ] DATED 22.09.2017 FOR THE A.Y. 2013 - 14 . 2. AT THE T IME OF HEARING THE APPEAL VIRTUALLY LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT ASSESSEE OPTED FOR VIVAD SE VISHWAS SCHEME AND FILED DECLARATION AND UNDERTAKING IN FORM - 1 TO SETTLE THE LITIGATION AND FORM 3 IS AWAITED FROM THE REVENUE. FURTHER LD. COUNSEL FOR THE 2 ITA NO . 7245 /MUM/20 17 (A.Y : 2013 - 14) M /S. KONECRANES PRIVATE LIMITED ASSESSEE THROUGH E - MAIL FILED A LETTER DATED 15 TH M ARCH 2021 AND STATED THAT THE APPELLANT HAS FILED AN APPLICATION UNDER THE VIVAD SE VISHWAS SCHEME FOR THE APPEAL FOR A . Y 2013 - 14 (ITA NO. 7245/MUM/201 7). 3. ON A PERUSAL OF THE ABOVE LETTER FILED BY LD. COUNSEL FOR THE ASSESSEE IT IS NOTICED THAT ASSESSEE HAS ALREADY FILED APPLICATION UNDER VIVAD - SE - VISHWAS SCHEME AND FORM 3 IS AWAITED FROM THE REVENUE. IN VIEW OF THE SUBMISSION OF THE LD. COUNSEL FOR THE ASSESSEE SINCE ASSESSEE HAS OPTED TO SETTLE LITIGATION UNDER VIVAD SE VISHWAS SCHEME NO PURPOSE WOULD SER VE KEEPING THE APPEALS PENDING. 4. THE HON'BLE MADRAS HIGH COURT IN THE CASE OF M/S. NANNUSAMY MOHAN (HUF) V. ACIT IN T.C.A. NO. 372 OF 2020 DATED 16.10.2020 ON AN APPEAL BY TH E ASSESSEE U/S. 260A OF THE ACT HELD AS UNDER: - THIS APPEAL HAS BEEN FILED BY THE ASSESSEE UNDER SECTION 260 A OF THE INCOME TAX ACT 1961 ('THE ACT' FOR BREVITY) CHALLENGING THE ORDER DATED 03.12.2018 PASSED BY THE INCOME TAX APPELLATE TRIBUNAL CHENNAI 'A' BENCH ('THE TRIBUNAL' FOR BREVITY) IN I.T.A.NO.2576/CHNY/2017 FOR THE ASSESSMENT YEAR 2011 - 12. THE APPE AL IS ADMITTED ON THE FOLLOWING SUBSTANTIAL QUESTIONS OF LAW: 1. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE INCOME TAX APPELLATE TRIBUNAL WAS PERVERSE IN NOT CONSIDERING ALL THE GROUNDS RAISED IN CROSS OBJECTION VIZ. (1) CLAIM OF EXEMPTION I N RESPECT OF SALE OF AGRICULTURAL LAND (2) CLAIM OF DEDUCTION BY WAY OF COST INFLATION INDEX AND COST OF PLOT OF LAND PURCHASED IN COMPUTING DEDUCTION U/S.54F OF INCOME TAX ACT? 2. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE INCOME TAX APPELLAT E TRIBUNAL WAS RIGHT IN LAW IN 3 ITA NO . 7245 /MUM/20 17 (A.Y : 2013 - 14) M /S. KONECRANES PRIVATE LIMITED UPHOLDING THE DISALLOWANCE OF COST OF IMPROVEMENT IN PROVIDING MODERN KITCHEN IN THE FLATS PURCHASED? 2. WE HAVE HEARD MR.M.P.SENTHIL KUMAR LEARNED COUNSEL APPEARING FOR THE APPELLANT/ASSESSEE AND MR.T.R.SENTHIL KUMAR LEAR NED SENIOR STANDING COUNSEL AND M/S.K.G.USHA RANI LEARNED COUNSEL FOR THE RESPONDENT/REVENUE. 3. THE LEARNED COUNSEL FOR THE APPELLANT / ASSESSEE ON INSTRUCTIONS SUBMITTED THAT THE APPELLANT / ASSESSEE INTENDS TO AVAIL THE BENEFIT OF VIVAD SE VISHWAS SC HEME ('VVS SCHEME' FOR BREVITY) AND IN THIS REGARD THE ASSESSEE IS TAKING STEPS TO FILE THE APPLICATION / DECLARATION IN FORM NO.I. 4. IT MAY NOT BE NECESSARY FOR THIS COURT TO DECIDE THE SUBSTANTIAL QUESTIONS OF LAW FRAMED FOR CONSIDERATION ON ACCOUNT OF CERTAIN SUBSEQUENT DEVELOPMENTS. THE GOVERNMENT OF INDIA ENACTED THE DIRECT TAX VIVAD SE VISHWAS ACT 2020 (ACT 3 OF 2020) TO PROVIDE FOR RESOLUTION OF DISPUTED TAX AND FOR MATTERS CONNECTED THEREWITH OR INCIDENTAL THERETO. THE ACT OF THE PARLIAMENT RECEIVED THE ASSENT OF THE PRESIDENT ON 17TH MARCH 2020 AND PUBLISHED IN THE GAZETTE OF INDIA ON 17TH MARCH 2020. 5. IN TERMS OF THE SAID ACT THE ASSESSEE HAS BEEN GIVEN AN OPTION TO PUT AN END TO THE TAX DI SPUTES WHICH MAY BE PENDING AT DIFFERENT LEVELS EITHER BEFORE THE FIRST APPELLATE AUTHORITY OR BEFORE THE TRIBUNAL OR BEFORE THE HIGH COURT OR BEFORE THE HON'BLE SUPREME COURT OF INDIA. UNDER SECTION 2 (J) DISPUTED TAX HAS BEEN DEFINED. IN TERMS OF SECTION 3 WHERE A DECLARANT MEANS A PERSON WHO FILES A DECLARATION UNDER SECTION 4 ON OR BEFORE THE LAST DATE FILES A DECLARATION TO THE DESIGNATED AUTHORITY IN ACCORDANCE WITH THE PROVISIONS OF SECTION 4 IN RESPECT OF TAX ARREARS THEN NOTWITHSTANDING ANYTHING CONTAINED IN THE INCOME TAX ACT OR ANY OTHER LAW FOR THE TIME BEING IN FORCE THE AMOUNT PAYABLE BY THE DECLARANT SHALL BE DETERMINED IN TERMS OF SECTION 3 (A - C) THEREUNDER. 6. THE FIRST PRO VISO TO SECTION 3 STATES THAT IN CASE WHERE AN APPEAL OR WRIT PETITION OR SPECIAL LEAVE PETITION IS FILED BY THE INCOME TAX AUTHORITY ON ANY ISSUE BEFORE THE APPELLATE FORUM THE AMOUNT PAYABLE SHALL BE ONE - HALF OF THE AMOUNT IN THE TABLE STIPULATED IN SECTION 3 CALCULATED ON SUCH ISSUE IN SUCH A MANNER AS MAY BE PRESCRIBED. THE SECOND PROVISO DEALS WITH THE CASES WHERE THE MATTER IS BEFORE THE COMMI SSIONER (APPEALS) OR BEFORE THE DISPUTE RESOLUTION PANEL. THE THIRD PROVISO DEALS WITH CASES WHERE THE ISSUE IS PENDING BEFORE THE INCOME TAX APPELLATE TRIBUNAL. THE FILING OF THE DECLARATION IS AS PER SECTION 4 OF THE ACT AND THE PARTICULARS TO BE FURNISHED ARE ALSO MENTIONED IN THE SUB SECTIONS OF SECTION 4 . SECTION 5 OF THE ACT DEALS WITH THE TIME AND MANNER OF THE PAYMENT AND SECTION 6 DEALS WITH IMMUNITY FROM INITIATION OF PROCEEDINGS IN RESPECT OF OFFENCE AND IMPOSITION OF PENALTY IN CERTAIN 4 ITA NO . 7245 /MUM/20 17 (A.Y : 2013 - 14) M /S. KONECRANES PRIVATE LIMITED CASES. SECTION 9 OF THE ACT DEALS WITH CASES WHERE THE ACT 3 OF 2020 WILL NOT BE APPLICABLE. 7. AS OBSERVED THE ASSESSEE IS GIVEN LIBERTY TO RESTORE THIS APPEAL IN THE EVENT THE ULTIMATE DECISION TO BE TAKEN ON THE DECLARATION TO BE FILED BY THE ASSESS EE UNDER SECTION 4 OF THE SAID ACT IS NOT IN FAVOUR OF THE ASSESSEE. IF SUCH A PRAYER IS MADE THE REGISTRY SHALL ENTERTAIN THE PRAYER WITHOUT INSISTING UPON ANY APPLICATION TO BE FILED FOR CONDONATION O F DELAY IN RESTORATION OF THE APPEAL AND ON SUCH REQUEST MADE BY THE ASSESSEE BY FILING A MISCELLANEOUS PETITION FOR RESTORATION THE REGISTRY SHALL PLACE SUCH PETITION BEFORE THE DIVISION BENCH FOR ORDERS. 8. IN THE LIGHT OF THE ABOVE WE DIRECT THE APPEL LANT / ASSESSEE TO FILE THE FORM NO.I ON OR BEFORE 20.11.2020 AND THE COMPETENT AUTHORITY SHALL PROCESS THE APPLICATION / DECLARATION IN ACCORDANCE WITH THE ACT AND PASS APPROPRIATE ORDERS AS EXPEDITIOUSLY AS POSSIBLE PREFERABLY WITHIN A PERIOD OF SIX (6) WEEKS FROM THE DATE ON WHICH THE DECLARATION IS FILED IN THE PROPER FORM. 5. FOLLOWING THE ABOVE DECISION OF THE HON'BLE MADRAS HIGH COURT TH IS APPEAL IS DISPOSED OFF ACCORDINGLY WITH LIBERTY TO THE ASSESSEE TO FILE A MISCELLANEOUS APPLICATION IN THE EVENT OF EITHER THE ASSESSEE NOT OPTING FOR VIVAD SE VISHWAS SCHEME AS CONTEMPLATED BY IT BEFORE THE DUE DATE OF THE SCHEME IN OPERATION OR IN THE EVENT OF THE DEPARTMEN T NOT ACCEPTING THE APPLICATION MADE BY THE ASSESSEE UNDER THE SAID SCHEME THE APPEAL OF THE ASSESSEE SHALL BE RECALLED BY THE TRIBUNAL AND RESTORED FOR ADJUDICATION ON MERITS. IT IS FURTHER MADE CLEAR THAT IF THE ASSESSEE SEEKS TO RESTORE THE APPEAL I N THE EVENT OF ASSESSEES DECLARATION MADE UNDER VIVAAD SE VISHWAS SCHEME IS NOT ACCEPTED BY THE REVENUE THE REGISTRY SHALL NOT INSIST FOR FILING OF APPLICATION FOR CONDONATION OF DELAY IF THE MISCELLANEOUS APPLICATION FOR RECALLING THE ORDER IS FILED BE YOND TIME ON ACCOUNT OF DELAYED COMMUNICATION OF OUTCOME UNDER VIVAAD SE VISHWAS 5 ITA NO . 7245 /MUM/20 17 (A.Y : 2013 - 14) M /S. KONECRANES PRIVATE LIMITED SCHEME IN VIEW OF THE DECISION OF THE HON'BLE MADRAS HIGH COURT IN THE CASE OF M/S. NANNUSAMY MOHAN (HUF) V. ACIT IN T.C.A. NO. 372 OF 2020 DATED 16.10.2020. WITH THESE OBSER VATIONS TH IS APPEAL IS DISMISSED AS WITHDRAWN. 6. IN THE RESULT APPEAL OF THE ASSESSEE IS DISMISSED AS WITHDRAWN. ORDER PRONOUNCED IN THE VIRTUAL COURT ON 16 .03.2021 . SD/ - SD/ - ( M. BALAGANESH ) (C.N. PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI / DATED 16 / 0 3 / 2021 GIRIDHAR SR.PS COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A) MUMBAI. 4. CIT 5. DR ITAT MUMBAI 6. GUARD FILE. //TRUE COPY// BY ORDER (ASSTT. REGISTRAR) ITAT MUM