Income Tax Appellate Tribunal - Mumbai
Dcit 6(2)(1), Mumbai vs Deloite Corporate Finance Services ... on 14 March, 2018
ITA No.4422/Mum/2016 & CO No. 46/M/18 Deloitte Corporate Finance Services India Pvt. Ltd.
Assessment Year 2010-11 आयकर अपीलीय अधिकरण "जी" न्यायपीठ मुंबई में। IN THE INCOME TAX APPELLATE TRIBUNAL "G" BENCH, MUMBAI श्री सी. नागेंद्र प्रसाद, न्यायिक सदस्य एवुं श्री मनोज कुमार अग्रवाल, लेखा सदस्य के समक्ष । BEFORE SHRI C.N. PRASAD, JM AND SHRI MANOJ KUMAR AGGARWAL, AM आिकर अपील सं./I.T.A. No. 4422/Mum/2016 (धििाारण वर्ा / Assessment Year: 2010-11) Deputy Commissioner of Income Tax Deloitte Corporate Finance Services Circle-6(2)(1) India Private Limited Room No. 563, Aaykar Bhawan बिाम/ Essar House, 11 M.K.Road Vs. K.K.Marg,Mahalaxmi Mumbai-400 020 Mumbai - 400 034 स्थािी ले खा सं ./जीआइआर सं ./PAN/GIR No. AACCD-4805-B (अपीलाथी /Appellant) : (प्रत्यथी / Respondent) & CO. No. 46/Mum/2018 (Arising out of ITA No. 4422/M/16) (धििाारण वर्ा / Assessment Year: 2010-11) Deloitte Corporate Finance Deputy Commissioner of Income Tax Services India Private Limited Circle-6(2)(1) Indiabulls Finance Centre Room No. 563, Aaykar Bhawan th nd बिाम/ M.K.Road Tower-3, 27 -32 Floor Senapati Bapat Marg Vs. Mumbai-400 020 Elphinstone Road Mumbai - 400 013 स्थािी ले खा सं ./जीआइआर सं ./PAN/GIR No. AACCD-4805-B (अपीलाथी /Appellant) : (प्रत्यथी / Respondent) Assessee by : Ketan Ved, Ld. AR.
Revenue by : V.Vidhyadhar, Ld. DR
सुनवाई की तारीख /
: 14/03/2018
Date of Hearing
घोषणा की तारीख /
: 14/03/2018
Date of Pronouncement
2
ITA No.4422/Mum/2016 & CO No. 46/M/18
Deloitte Corporate Finance Services India Pvt. Ltd.
Assessment Year 2010-11 आदे श / O R D E R Per Bench
1. The captioned appeal by revenue for Assessment Year [AY] 2010- 11 contest the order of Ld. Commissioner of Income-Tax (Appeals)- 2 [CIT(A)], Mumbai Appeal No.CIT(A)-2/IT-25/2013-14 dated 14/03/2016. The assessment for impugned AY was framed by Ld. Deputy Commissioner of Income Tax-1(1) on 06/03/2013 u/s 143(3) of the Income Tax Act, 1961. The assessee has filed cross objections against the same. The effective grounds raised in revenue's appeal reads as under:-
I. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in observing that the AO has not established that the method of accounting followed by the assessee was with an intention to defer the tax liabilities and there is no loss to revenue as the tax rate is the same in both assessment years without considering the fact that the assessee is following mercantile system of accounting as such, the revenue has to be recognized as and when the work is finished as per the terms of the contract.
2.1 Facts leading to the same are that the assessee being resident corporate assessee engaged in providing corporate finance services was assessed for impugned AY at loss of Rs.10.81 crores after certain adjustment of professional income for Rs.1.01 crores as against returned loss of Rs.9.79 crores e-filed by the assessee on 30/10/2010. The aforesaid adjustment of professional income is the sole subject matter of this appeal.
2.2 Upon perusal of details filed by the assessee during assessment proceedings, the Ld. AO opined that the professional fees bills raised by the assessee in the month of April, 2010 amounting to Rs.1.05 crores 3 ITA No.4422/Mum/2016 & CO No. 46/M/18 Deloitte Corporate Finance Services India Pvt. Ltd.
Assessment Year 2010-11 pertained to services rendered by the assessee in financial year 2009-10 and therefore, the same were required to be taxed in the impugned AY only. Since the assessee had already offered income of Rs.2.06 crores pertaining to bills raised in April, 2009 in the impugned AY, Ld. AO netted the same to Rs.1.01 crores and enhanced the returned loss to that extent.
3. Aggrieved, the assessee contested the same with success before Ld. CIT(A) vide impugned order dated 14/03/2016 where Ld. CIT(A) relying on the orders for AYs 2008-09 & 2009-10 allowed the stand of the assessee. Aggrieved, the revenue is in further appeal before us.
4. The Ld. Authorized Counsel for Assessee [AR], at the outset, drew our attention to the order of this Tribunal in assessee's own case for AY 2009-10 and submitted that the issue stood covered in assessee's favor by the cited judgment and therefore, the factual matrix being the identical, the same should be followed. The Ld. DR fairly conceded the same.
5. Upon perusal of order of this Tribunal in ITA No. 4135- 36/Mum/2015 order dated 15/03/2017 for AY 2009-10, as placed on record, we find that the matter has been settled in assessee's favour by the Tribunal by making following observations:-
6.1. It is noted that the Assessing Officer made addition of Rs.2,06,73,054/- representing various invoices raised by the assessee on his clients in the month of April 2009. These receipts were accounted for in the relevant previous years of A.Y.2010-11, meaning thereby the income has already accounted for in the subsequent assessment year. The claim of the assessee is that the Revenue is recognized only at a stage where there is certainty of realization of income. It is noted that there is no undue benefit derived by the assessee in accounting for certain invoices in subsequent year. Our view finds support from the decision from Hon'ble Apex Court in CIT vs. Excel Industries Ltd., The tax rate in both the years is same, thus, we find no infirmity in the conclusion of the learned CIT(A).
4 ITA No.4422/Mum/2016 & CO No. 46/M/18Deloitte Corporate Finance Services India Pvt. Ltd.
Assessment Year 2010-11 Finally, both the appeals of the Revenue are dismissed.
Since the facts are identical, respectfully following the same, the appeal of the revenue stands dismissed. To make it more clear, the said adjustment of Rs.1.01 crores made by Ld. AO by enhancing the returned loss is not warranted and therefore, the total loss of the assessee stands determined at Rs.(-)9,79,91,325/-.
6. Resultantly, the revenue's appeal stands dismissed which makes assessee's cross objections infructuous and hence dismissed.
Order pronounced in the open court on 14th March, 2018.
Sd/- Sd/-
(C.N.Prasad) (Manoj Kumar Aggarwal)
न्यायिक सदस्य / Judicial Member लेखा सदस्य / Accountant Member
मुंबई Mumbai; यदनां क Dated :14. 03.2018 Sr.PS:-
आदे श की प्रधिधलधप अग्रेधर्ि/Copy of the Order forwarded to :
1. अपीलाथी / The Appellant
2. प्रत्यथी / The Respondent
3. आिकर आिुक्त(अपील) / The CIT(A)
4. आिकर आिुक्त / CIT - concerned
5. यवभागीि प्रयतयनयि, आिकर अपीलीि अयिकरण, मुंबई / DR, ITAT, Mumbai
6. गार्ड फाईल / Guard File आदे शािसार/ BY ORDER, उप/सहायक पुंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अधिकरण, मुंबई / ITAT, Mumbai