VARUN SHIPPING CO. LTD.,MUMBAI vs. DCIT - 5(3), MUMBAI

PDF · subscribers
ITA 3040/MUM/2016Status: DisposedITAT Mumbai31 January 2023AY 2010-114 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal dismissed the assessee's appeal as not maintainable due to the company being under liquidation and the Official Liquidator's non-appearance. The Tribunal also dismissed the revenue's appeal, upholding the CIT(A)'s decision that no disallowance under Section 14A is permissible when income is offered on a presumptive basis under the tonnage tax scheme.

What were the facts?

The assessee company, M/s. Varun Global Ltd., successor to M/s. Varun Shipping Company Ltd., was under liquidation. The Official Liquidator did not appear to represent the assessee in the appeal proceedings. The revenue's appeal concerned disallowance of expenses under Section 14A.

What were the issues?

Whether the assessee's appeal is maintainable when the company is under liquidation and the Official Liquidator fails to appear. Whether disallowance under Section 14A is permissible for income offered under the tonnage tax scheme.

Which sections of the Income-tax Act were involved?

Section 14A,Section 115JB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘J‘ BENCH

Before: SHRI AMIT SHUKLA & SHRI M.BALAGANESH

For Respondent: Shri Manoj Kumar
Hearing: 12/01/2023Pronounced: 31/01/2023

आदेश / O R D E R PER M. BALAGANESH (A.M):

1.

These are cross appeals in 3205/Mum/2016 for A.Y.2010-11 arises out of the order by the ld. Commissioner of Income Tax (Appeals)-10, Mumbai in appeal No.CIT(A)- 10/DCIT-5(3)/165/2014-15 dated 29/01/2016 (ld. CIT(A) in short) against the order of assessment passed u/s.143(3) r.w.s. 144C(3) of the Income Tax Act, 1961 (hereinafter referred to as Act) dated 03/04/2014 by the ld. Dy. Commissioner of Income Tax, Circle-5(3), Mumbai (hereinafter referred to as ld. AO).

2.

None appeared on behalf of the assessee. On perusal of the earlier order sheet notings we find that on 17/11/2022 Shri Suresh Kumar, Sr. Assistant from office of Official Liquidator appeared before the Bench and informed that assessee company M/s. Varun Global Ltd. (M/s. Varun Shipping Company Ltd. is merged with M/s. Varun Global Ltd.) is under liquidation. We find that the revenue had filed Revised Form No. 36 duly impleading the Official Liquidator on record. Infact the revenue had also duly served the notice of hearing on the Official Liquidator through the ld. AO. But we find that the Official Liquidator had not impleaded himself to represent the assessee company in the appeal filed by the assessee by filing Revised Form No. 36. Since the company is under liquidation and Official Liquidator did not ensure the presence before this Bench at the time of hearing on 12/01/2023, we deem it fit to dismiss the appeal of the assessee as not maintainable in the present format. We find that no further evidences had been submitted by the Official Liquidator on behalf of the assessee company to controvert the findings given by the ld.

3205/Mum/2016 M/s. Varun Global Ltd. (Successor to M/s. Varun Shipping Company Ltd.

CIT(A). With regard to revenue’s appeal, it is clear that once an income is offered on presumptive basis under tonnage tax scheme, there cannot be any disallowance of expenses u/s 14A of the Act. In fact this issue has been decided in favour of the assessee by this tribunal in assessee’s own case for the A.Y. 2008-09 which has been taken note of by the ld. CIT(A) while granting relief to the assessee, both under normal provisions of the Act as well as in the computation of book profits u/s 115JB of the Act. In view of this, we do not deem it fit to interfere in the order passed by the ld. CIT(A). Accordingly, the appeal of the assessee is dismissed and appeal of the Revenue is dismissed.

3.

In the result, appeal of assessee is dismissed and appeal of the Revenue is dismissed.

Order pronounced on 31/01/2023 by way of proper mentioning in the notice board.

Sd/- Sd/- (AMIT SHUKLA) (M.BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai; Dated 31/01/2023 KARUNA, sr.ps

3205/Mum/2016 M/s. Varun Global Ltd. (Successor to M/s. Varun Shipping Company Ltd.

More judgments on Section 14A

All 15,875 judgments and leading authorities on Section 14A →

Recent GST High Court judgments

Search GST case law →