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Income Tax Appellate Tribunal, BENCH “F”, MUMBAI
Before: SHRI SHAMIM YAHYA & SHRI PAWAN SINGH
IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH “F”, MUMBAI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI PAWAN SINGH, JUDICIAL MEMBER (Assessment Year- 2011-12) (Assessment Year- 2012-13) ACIT Circle -15(1)(2) M/s C.U. Inspections (I) Pvt. Ltd. Room No. 483A, 4th Floor, 8, Summer Ville, 33rd- 14th Khar Vs. Aayakar Bhavan, M.K. Road, (West), Mumbai-400052 Mumbai-20. PAN:AAACH6794F (Appellant) (Respondent) Revenue by : Shri Saurabh Deshpande (DR) Assessee by : None Date of hearing : 12.03.2018 Date of Pronouncement : 12 .03.2018 Order Under Section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER: 1. These two appeal by Revenue under section 253 of Income Tax Act are directed against the common order of Ld. Commissioner of Income-Tax (Appeals)-24, Mumbai, [for short the ld. CIT(A)] dated 20.05.2016 for Assessment Years 2011-2012 & 2012-2013. The Revenue has raised identical grounds of appeal except variation of figures of additions on account of License Fees. The ld CIT(A) passed common order for both the years, thus, keeping in view the commonality of grounds of appeal, both the appeal was heard together and is decided by a common order. For appreciation of facts, we are referring the fact for Assessment Year 2011-
The Revenue has raised the following grounds of appeal:
1. “On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in deleting the disallowance of Rs. 5,35,38,282/- added as & 4971/Mum/2016 - M/s C.U. Inspections (I) Pvt. Ltd.
License Fees/Service charges which has accrued to the assessee, despite the clear finding by the Assessing Officer that the assessee was consistently following the mercantile system of accounting and that following this system income had accrued to the assessee”. 2. The appellant prays that the order of CIT(A) on the above ground be set aside and that of the Assessing Officer is restored.
Brief facts of the case are that the assessee-company is engaged in the business of technical testing & analysis services, filed its return of income for relevant Assessment Year on 24.11.2011 declaring total income at Rs. 6,96,78,985/-. The assessment was completed on 30.03.2015 under section 143(3) of the Act. The Assessing Officer assessed the total income of assessee at Rs. 12,85,77,250/-. The Assessing Officer besides the other addition and disallowances made the addition of Rs. 5,35,38,282/- on account of License Fees/Service charges billed but not accrued during the year. On appeal before the ld. CIT(A), the addition was deleted on the basis of decision of Tribunal for assessment years 2004-05, 2006-07,2008- 09&2009-10 in & 347/M2011, 3525& 4697/M/2012 and 4936/M/2012. Thus, aggrieved by the order of ld. CIT(A), the Revenue has filed the present appeal before us raising the grounds of appeal
as referred as above.
3. The case came up hearing on 12.03.2018. None appeared on behalf of assessee. Perusal of impugned order reveals that the ld. CIT(A) allowed the appeal of assessee on the basis of decision of Hon’ble jurisdictional High Court in assessee’s own for Assessment Year 2006-07 & 2008-09 decided vide ITA No. 1914/2013 and ITA No. 1641/2013 dated 04.08.2013. We ITA No. 4970 & 4971/Mum/2016 - M/s C.U. Inspections (I) Pvt. Ltd. have heard the Ld. Departmental Representative (DR) for the Revenue and further perused the order of authorities below with his help. Though, the ld. DR for the Revenue supported the order of Assessing Officer, however, on our specific queries raised regarding the further appeal against the order of Hon’ble jurisdictional High Court dated 04.08.2013 in ITA No. 1914/2013 and ITA No. 1641/2013, the ld. DR for the Revenue fairly conceded that the order of Hon’ble High Court has not been reversed so far.
4. We have considered the submission of ld. DR for the Revenue and find that similar disallowance was made by the AO in assessment for assessment year 2006-07 and 2008-09. However, on appeal the Tribunal the additions were deleted. On appeal before the ld. Hon’ble jurisdictional High Court, the order of Tribunal was sustained in ITA No. 1914 of 2013 and ITA No. 1641 of 2013 dated 04.08.2013. Considering the decision of Hon’ble jurisdictional High Court in assessee’s own case, on identical grounds, we do not find any merit in the grounds of appeal raised by Revenue. In the result, ground of appeal raised by Revenue is dismissed.
5. ITA No. 4971/Mum/2016 for AY 2012-13.
6. The Revenue has raised the identical ground of appeal as raised in appeal for Assessment Year 2011-12. Considering the fact that we have already dismissed the appeal of the Revenue for Assessment Year 2011-12 on the basis of decision of Hon’ble jurisdictional High Court in assessee’s own case assessment year 2006-07 and 2008-09 in ITA No. 1914 of 2013 and ITA No. 4970 & 4971/Mum/2016 - M/s C.U. Inspections (I) Pvt. Ltd. of 2013 dated 04.08.2013. Hence, the appeal for Assessment Year 2012-13 is also dismissed with similar observation.
In the result, both the appeal filed by Revenue is dismissed.
Order pronounced in the open court on 12th day of March 2018.