The Commissioner Of Income Tax - 12, Mumbai v. Jehangir H.c. Jehangir

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.2002 OF 2009 The Commissioner of Income Tax - 12, Mumbai..Appellant. VersusJehangir H.C. Jehangir..Respondent. Ms.Suchitra Kamble for the appellant.Mr.F.V. Irani with Mr.Prakash Shah i/by PDS Legal for the respondent. CORAM : J.P. Devadhar & Mrs.Mridula Bhatkar, JJ. P.C. : DATE : 17[th] January, 2011. 1.The question of law raised in this appeal is, whether the Tribunal was justified in allowing the deduction of the development and marketing fees of Rs.5,30,02,176/- paid by the asessee to Godrej Properties and Investment Limited (‘Godrej’ for short). As per the joint venture agreement dated 4-9-1998, the assessee was to pay 25% of the development and marketing fees received in respect of the project in question. As per the subsequent agreement dated 10-6-1999, the assessee was to pay the entire development and marketing fees received to Godrej in respect of the project in question. As per the second agreement, the assessee had paid the entire development and marketing fees amounting to Rs.5,30,02,176/- to Godrej and claimed deduction. The assessing officer allowed 25% of the fees as per the agreement dated 4-9-1998 and held that the agreement dated 10-6-1999 was a sham agreement. 2.The Tribunal on consideration of the materials on record has given a finding of fact in para-6 of its judgment to the effect that the second agreement is a valid agreement and that the entire amount paid by the assessee in respect of the project in question has been assessed in the hands of Godrej. Similarly, in respect of the other projects the amounts received by the assessee has been assessed in the hands of the assessee. 3.In our opinion, the decision of the Tribunal is based on finding of fact. No substantial question of law arises in this appeal. The appeal is accordingly dismissed with no order as to costs. (Mrs.Mridula Bhatkar, J.) (J.P. Devadhar, J.)