Appeal and cross objections filed by Deputy Commissioner of Income Tax and Mumbai Railway Vikas Nigam Limited have been dismissed by ITAT.

The Income Tax Appellate Tribunal (ITAT) Mumbai Bench has dismissed both the appeal filed by the Deputy Commissioner of Income Tax and the cross objections lodged by Mumbai Railway Vikas Nigam Limited. The case pertains to the assessment year 2015-16 and concerns the allowance of exemption under section 11 of the Income Tax Act. The core of the dispute revolved around whether the receipts from developing and implementing rail infrastructure projects exceeded the limits specified in the proviso to section 2(15) of the Act.

IN THE INCOME TAX APPELLATE TRIBUNAL
MUMBAI 'D' BENCH, MUMBAI

[Coram: Pramod Kumar (Vice President),
and Pavan Kumar Gadale (Judicial Member)]
ITA No. 2883/Mum/19

Assessment year: 2015-16
Deputy Commissioner of Income Tax
Exemptions 2(1), Mumbai ……………….………Appellant

Vs.

Mumbai Railway Vikas Nigam Limited ……………………Respondent
2nd floor, Churchgate Station Building
Churchgate, Mumbai 400 00 [PAN: AACCM1284B]

CO No 45/Mum/20
In ITA No. 2883/Mum/19
Assessment year: 2015-16

Mumbai Railway Vikas Nigam Limited ……………….…Cross objector
2nd floor, Churchgate Station Building
Churchgate, Mumbai 400 00 [PAN: AACCM1284B]
Vs.

Deputy Commissioner of Income Tax
Exemptions 2(1), Mumbai ……………………Respondent

Appearances by
Ashima Gupta for the appellant
Vipul Joshi for the respondent

Date of concluding the hearing : December 14, 2020
Date of pronouncement : January 05, 2021

ORDER

Per Pramod Kumar, VP:

1. By way of this appeal, the Assessing Officer has challenged correctness of the order dated 4th February 2019, passed by the learned CIT(A), in the matter of assessment under section 143(3) of the Income Tax Act, 1961, for the assessment year 2015-16.

2. Grievances raised by the appellant are as follows:

1. "Whether on the facts and circumstances of the case and in law, the Ld.CIT(A) is right in allowing the exemption u/s 11 of the IT. Act in view of proviso to section 2(15) of the I.T. Act, when the receipts from the business of developing, coordinating plants and implementing the rail infrastructure projects, etc. for Indian Railways, exceeded the limit provided in proviso to section 2(15), ignoring the detailed discussion made in assessment order in Para B & C of 6.3".

To know more in details find the attachment file