The Commissioner of Income-tax-­5, Mumbai v. CGU Logistic Ltd
[Citation -2017-LL-0724-3]

Citation 2017-LL-0724-3
Appellant Name The Commissioner of Income-tax-­5, Mumbai
Respondent Name CGU Logistic Ltd.
Court HIGH COURT OF BOMBAY
Relevant Act Income-tax
Date of Order 24/07/2017
Assessment Year 2011-12
Judgment View Judgment
Keyword Tags revenue expenditure
Bot Summary: According to the learned counsel, the Assessee had not purchased the Ship. If the Assessee would have purchased the ship, then the Judgment of the Tribunal could have been appreciated. 812015 purpose of purchasing the ship, the Assessee is not entitled for the benefit. The Tribunal has accepted that the Assessee has utilized the loan for the purpose of purchase of ship. Contention of the learned counsel for the Revenue relying on the observations of the Commissioner in the Judgment is that the Assessee has not purchased the ship from the loan which has been advanced, does not appear to be proper. On perusing the agreement between the Assessee and the party advancing loan, the ship, as is subject matter of the said agreement, means 10500 deadweight tonne motor vessel bulk cargo transhipper known as Bulk Prosperity. In view of this, the finding of the Tribunal that the Assessee has acquired the ship from the loan advanced is not perverse and the same is based on documentary evidence.


IN HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDITION INCOME TAX APPEAL NO.81 OF 2015 Commissioner of Income Tax 5, Mumbai ... Appellant V/s. CGU Logistic Ltd. ... Respondent ..... Mr.N.C.Mohanty, Advocate for Appellant. Mr.Nishant Thakkar i/by Mind and Confreres, Advocate for Respondent. .... CORAM : S.V.GANGAPURWALA & A.M.BADAR JJ. DATED : 24th July 2017. P.C. 1 present Appeal pertains to Assessment Year 2011 12. 2 Mr.Mohanty, learned counsel for Appellant submits that Tribunal was not justified in holding that FEFG of Rs.7.53 crores is not taxable in this year under Section 43A of Act. According to learned counsel, Assessee had not purchased Ship. If Assessee would have purchased ship, then Judgment of Tribunal could have been appreciated. However, in absence of utilizing loan for Gaikwad RD 1/4 ::: Uploaded on - 25/07/2017 ::: Downloaded on - 26/07/2017 10:11:22 ::: (47)ITXANo.812015 purpose of purchasing ship, Assessee is not entitled for benefit. 3 learned counsel further submits that specific finding is arrived at by Commissioner to effect that no such ship has been purchased so as to utilize amount of loan and there is no addition to fixed assets schedule towards acquisition of new ship. 4 learned counsel further submits that amount of Rs.23.11 Lakhs had not arisen to Revenue account. Tribunal erred in holding that FEFG Of Rs.23.11 Lakhs is covered under Income offered under TTS under Chapter XX G of Act. 5 learned Senior Advocate for Respondent submits that Tribunal has rightly held that loan has been utilized for purpose of purchase of ship. Even Commissioner comes to conclusion that Assessee has acquired 'Vessel Bulk Prosperity'. same is subject matter of agreement for which loan was advanced to present Assessee. learned Senior Advocate further submits that as far as revenue expenditure of Rs.23.11 lakhs is concerned, it is covered by Judgment in Income Tax Appeal No.2394 of 2009 dated 13th January 2010. Gaikwad RD 2/4 ::: Uploaded on - 25/07/2017 ::: Downloaded on - 26/07/2017 10:11:22 ::: (47)ITXANo.812015 6 We have considered submissions and have gone through Orders passed. Tribunal has accepted that Assessee has utilized loan for purpose of purchase of ship. It is also not disputed by learned counsel for Revenue that if Assessee has utilized loan for purpose of purchase of ship, then benefit given by Tribunal cannot be disputed. However, contention of learned counsel for Revenue relying on observations of Commissioner (Appeals) in Judgment is that Assessee has not purchased ship from loan which has been advanced, does not appear to be proper. Commissioner in its Judgment has accepted that Assessee has acquired Vessel Bulk Prosperity. On perusing agreement between Assessee and party advancing loan, ship, as is subject matter of said agreement, means 10500 deadweight tonne motor vessel bulk cargo transhipper known as Bulk Prosperity . Commissioner accepts that Assessee has acquired Bulk Prosperity. In view of this, finding of Tribunal that Assessee has acquired ship from loan advanced is not perverse and same is based on documentary evidence. We do not find any perversity in same. Even finding of Tribunal holding that FEFG of Rs.23.11 lakhs cannot be separately taxed as FEFG as Assessee offered income under TTS is concerned, same is covered by Order of this Court in Income Tax Appeal No.2394 of 2009 dated 13 th January 2010. Gaikwad RD 3/4 ::: Uploaded on - 25/07/2017 ::: Downloaded on - 26/07/2017 10:11:22 ::: (47)ITXANo.812015 7 In light of above, no substantial question arises. Appeal, as such, is dismissed. No costs. ( A.M.BADAR J.) ( S.V.GANGAPURWALA J.) Gaikwad RD 4/4 ::: Uploaded on - 25/07/2017 ::: Downloaded on - 26/07/2017 10:11:22 ::: TheCommissionerofIncome-tax-5,Mumbai v. CGULogisticLtd
Report Error