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Income Tax Appellate Tribunal - Mumbai

Navi Mumbai Sez Pvt. Ltd, Mumbai vs Acit (Osd) Rg -7, Mumbai on 8 May, 2017

आयकर अपीलीय अधिकरण " बी" न्यायपीठ मुंबई में। IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH "B", MUMBAI BEFORE SHRI C.N. PRASAD, JUDICIAL MEMBER AND SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER ITA NO.4940/MUM/2014, (A.Y : 2006-07) M/s Navi Mumbai SEZ Private Ltd. Vs. ACIT (OSD) 1st Floor, Jai Centre, Range-7 34 P.D.Mello Road Aayakar Bhavan Opp. Red Gate Ground Floor Masjid, Mumbai - 400 009 Mumbai - 400 020 PAN : AAACN0042N ITA NO.5129/MUM/2014 (A.Y : 2006-07) DCIT -7(1) Vs. M/s Navi Mumbai SEZ Room No.622 Private Ltd.

Aayakar Bhavan                                        1st Floor, Jai Centre,
M.K.Road, Church Gate                                 34 P.D.Mello Road
Mumbai - 400 020                                      Opp. Red Gate
                                                      Masjid, Mumbai - 400 009
                                                      PAN : AAACN0042N

(अपीलार्थी / Appellant)                               (प्रत्यर्थी / Respondent)

निर्ाा रिती की ओर से /Assessee by : Shri Jeevanlal Lavidiya िाजस्व की ओर से /Revenue by : Shri Ramesh Jain सुिवाई की तािीख / Date of Hearing : 8.5.2017 घोषणा की तािीख / Date of Pronouncement : 8.5.2017 आदे श / O R D E R PER C.N.PRASAD (JM) These appeals are filed by the Assessee and Revenue against the order of the Ld. CIT (Appeals)-13, Mumbai dated 16.5.2014 for the assessment year 2006-07 arising out of the order passed u/s 143(3) r.w.s 263 of the Act.

ITA Nos. 4940 & 5129/Mum/2014 (A.Y.2006-07) M/s Navi Mumbai SEZ Private Ltd.

2. At the outset, the Ld. Counsel for the Assessee submits that the issues in both these appeals arise out of the consequential assessment order passed u/s 143(3) giving effect to the order of the Ld. CIT passed u/s 263 of the Act. The Ld. Counsel for the Assessee submits that the appeal filed by the Assessee against the order passed by the Ld. CIT u/s 263 has been allowed by the Tribunal in ITA No.4425/Mum/2011 dated 9.3.2017. The Ld. Counsel for the Assessee inviting our attention to para 9 of the Tribunal's order submits that the order passed by the Ld. CIT u/s 263 has been quashed and therefore consequential assessments made u/s 143(3) r.w.s 263 will not survive. He submits that the present appeals filed by the Assessee and the Revenue becomes infructuous in view of the Tribunal's order quashing the 263 proceedings.

3. We have perused the order of the Coordinate Bench in ITA No.4425/Mum/2011 dated 9.3.2017. In para 9 of the order, the Tribunal quashed the revision order passed u/s 263 of the Act observing as under :

"9. We find from the above facts that the CIT has given directions merely to verity the expenses claim u/s 57(iii) of the Act in the computation of income by the assessee and the same have been explained earlier also. We also find that issue of taxing of interest earned on deposits under the head income from other source and granting of deduction for interest paid on borrowed funds utilized to earn such interest on deposits had been duly considered by the AO while completing assessment u/s 143(3) of the Act. We find that the AO had examined this issue and the facts of the case during assessment proceedings and as such the CIT has no power to direct the AO to reexamine the same by passing a revision order u/s 263 of the Act merely because CTT(A) holds a different view from the view taken by the AO. Hence, we quash the revision proceedings passed u/s 263 of the Act and allow the appeal of the assessee."

ITA Nos. 4940 & 5129/Mum/2014 (A.Y.2006-07) M/s Navi Mumbai SEZ Private Ltd.

Since the order passed u/s 263 by the Ld.CIT has been quashed, the consequential assessment order passed by the Assessing Officer u/s 143(3) r.w.s 263 will not survive. Consequently the present appeals arising out of the consequential assessment order passed u/s143(3) r.w.s.263 will not survive. Hence both the appeals are dismissed as infructuous.

7. In the result, appeals of the Assessee and Revenue are dismissed.

Order pronounced in the open court on the 8th day of May 2017.

       Sd/-                                                      Sd/-
(RAMIT KOCHAR)                                             (C.N.PRASAD)
ले खा सदस्य /                                              न्याधयक सदस्य /
ACCOUNTANT MEMBER                                          JUDICIAL MEMBER

मुुंबई / Mumbai; नििाुं क / Dated 8.5.2017 LR, SPS 4 ITA Nos. 4940 & 5129/Mum/2014 (A.Y.2006-07) M/s Navi Mumbai SEZ Private Ltd.

आदे श की प्रधिधलधप अग्रे धिि / Copy of the Order forwarded to :

1. अपीलार्थी / The Appellant

2. प्रत्यर्थी / The Respondent.

3. आयकि आयुक्त(अपील) / The CIT(A), Mumbai.

4. आयकि आयुक्त / CIT

5. नवभागीय प्रनतनिनर्, आयकि अपीलीय अनर्किण, मुुं बई / DR, ITAT, Mumbai

6. गार्ा फाईल / Guard file.

सत्यानपत प्रनत //True Copy// आदे शानसार/ BY ORDER, सहायक पुं जीकार (Asstt. Registrar) आयकर अपीलीय अधिकरण,मुुं बई / ITAT, Mum