TMI Blog2014 (12) TMI 107X X X X Extracts X X X X X X X X Extracts X X X X ..... f law arises for consideration - Decided against revenue. - Income Tax Appeal No.1221 of 2012, Income Tax Appeal No.1222 of 2012 - - - Dated:- 14-11-2014 - S. C. Dharmadhikari And A. A. Sayed,JJ. For the Petitioner : Mr. A. R. Malhotra Mr N A Kazi For the Respondents : Mr. Nishant Thakkar Mr. Jas Sanghavi ORDER P.C. The Revenue is in appeal in these two matters to challenge the order passed by the Income Tax Appellate Tribunal at Mumbai. The order passed by the Tribunal and which is challenged in these Appeals is dated 15-02-2012. That order dealt with two Appeals, one by the Revenue and another by the Assessee. 2. The Revenue is aggrieved by that part of the Tribunal's order where it held that the Commis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... siness of Mandhana Boremann. 4. The Tribunal noted this factual material and then concluded that the Coordinate Bench's decisions in the case of Shashikant G. Mandhana, HUF in ITA No.3908/Mum/2010 and then in the case of Savita N. Mandhana in ITA No.3900/Mum/2010, would enable them to conclude that the Assessing Officer could not have determined the consideration in terms of the non-compete clause and section 28(va) of the Income Tax Act, 1961 at ₹ 205/- nor could the Commissioner have brought it down to ₹ 41/-. The Tribunal's ultimate reasoning is to be found in para 12. The Tribunal essentially applied the reasoning in the Coordinate Bench decisions. 5. Mr.Malhotra, appearing on behalf of the Revenue, submits tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stain the exercise of the Assessing Officer and the Commissioner. The Tribunal also referred to the basic facts, inasmuch as, the business of Mandhana Exports Pvt.Ltd., which was managed by Mandhana family for number of years, was not thereafter managed in the same manner. In 1996, the Assessee-company entered into Joint Venture agreement with Bornemann and Bick GmbH, Germany, under which 50% of the Equity shares were allotted to this German company and the name of the company was changed to Mandhana Boremann Industries Pvt.Ltd.. This German company was acquired by a Dutch company by the name Paxar BV, that is how the shareholdings to the extent of that held by the German company came in the hands of this Dutch company. In the relevant prev ..... X X X X Extracts X X X X X X X X Extracts X X X X
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