DCIT CIR 3(3), MUMBAI vs. WHITE PEARLS HOTELS & INVESTMENT P. LTD, MUMBAI

Order u/s.254(1)of the Income-tax Act,1961(Act) लेखा सद�य सद�य राजे�� राजे�� केकेकेके अनुसार अनुसार PER RAJENDRA, AM- लेखा लेखा लेखा सद�य सद�य राजे�� राजे�� अनुसार अनुसार Challenging the order dated 19.09.2014 of CIT(A)-7,Mumbai the Assessing Officer(AO)has filed the present appeal.Assessee-company,engaged in the business of hospitality,filed its return of income,declaring total income of Rs. 3.24Crores.The AO completed the assessment under section 143 (3) of the Act,on 10/12/2013,determining the income of the assessee at Rs.4.85 crores.

2.The effective ground of appeal is about deletion of disallowance made under section 14A of the Act.At the time of hearing before us,it was brought to our notice that in the earlier AY.s. identical issue was decided against the AO by the Tribunal.We find that while deciding the appeals for the AY.s.2009-10 and 2010-11(ITA.s.4313&4314/Mum/2014/dtd.23.11.2015),the Tribunal decided the issue as under: “2. The grievance of the revenue is common in both these appeals and relates to the disallowance made under section 14 A of the Act which has been deleted by the Ld. CIT (A). The revenue has heavily relied on the decision of the Tribunal Special Bench in the case of Cheminvest Ltd..121 ITD 318 as per ground No.2 of grounds of appeal.

3. This issue is now well settled by the Hon’ble High Court of Delhi which has reversed the decision of the Special Bench in the case of Cheminvest Ltd.. 378 ITR

33. The relevant portion and the decision of the Hon’ble High Court reads as under:

7519/M/14 White Pearls Hotels