BIRLA GROUP HOLDINGS PVT. LTD,MUMBAI V. DCIT-CC-4(2), , MUMBAI

MA 164/MUM/2024

AI Insights

The case involves Birla Group Holdings Pvt. Ltd., the appellant, seeking a recall/rectification of an earlier Tribunal order concerning the disallowance of net interest expenses under Rule 8D(2)(i) for the assessment year 2018-19. The Tribunal had previously restored the matter back to the Assessing Officer, interpreting the disallowance to be restricted to the total expenses claimed by the assessee. The appellant argued that the Tribunal had not considered the disallowance in respect of net interest while calculating the disallowance under Rule 8D(2)(i). However, the Tribunal found that there was no mistake in their earlier order and dismissed the application.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 31975 (ITAT-MUMBAI)
• Duration Of Justice: 3 month(s) 1 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 16-10-2024
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 23-08-2024
• Assessment Year: 2018-2019
• Appeal Filed On: 15-07-2024
• Laws Referred To: Income-tax Act, Income-tax Rules, 1962
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ASHOK KUMAR AMBASTHA
• Assessee Lawyers: ANUJ KISNADWALA; AW
• Keywords: Rule 8D
• Section: 14A

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “B” MUMBAI BEFORE SHRI OM PRAKASH KANT (ACCOUNTANT MEMBER) AND SHRI RAHUL CHAUDHARY (JUDICIAL MEMBER) MA No. 164/MUM/2024 (Arising out of ITA No. 2693/MUM/2023) Assessment Year: 2018-19 Birla Group Holdings Pvt. Ltd., 1st floor Industry House, 159 Churchgate Reclamation, Churchgate, Mumbai-400020. Vs. Dy. CIT, CC-4(2), Central Range-4, Room No. 1921, 19th floor, Air India Building Nariman Point, Mumbai-400021. PAN NO. AAACR 2250 C Appellant Respondent Assessee by : Mr. Anuj Kisnadwala, Adv. a/w Mr. Sunil Hirawat, CA Revenue by : Mr. Ashok Kumar Ambastha, DR Date of Hearing : 23/08/2024 Date of pronouncement : 16/10/2024 ORDER PER OM PRAKASH KANT, AM By way of this Miscellaneous Application, the assessee is seeking recall/rectification of the order of the Tribunal dated 26.03.2024 passed in ITA No. 2693/Mum/2023 for assessment year 2018-19, on the ground that while deciding the issue of disallowance under section 14A of the Act, the Tribunal had not considered the net interest expenses disallowed under rule 8D(2)(i) of the Income-tax Rules, 1962. 2. We have heard rival submission of the parties and perused the relevant material on record. Appellate Tribunal (ITAT) held that the interpretation of the assessee of restricting the disallowance expenses in the nature of administrative cost the clear language of proviso to Rule 8D(2)(ii) of th Rules, 1962, which restrict the disallowance under Rule 8D(2)(i) and 8D(2)(ii) up to the total expenditure claimed by the assessee. Accordingly, the ITAT has restored the matter back to the file of the Assessing Officer. 3. Before us, the Ld. the Tribunal has not considered the disallowance in respect of net interest while working out disallowance under Rule 8D(2)(i) of the Rules. In our opinion, there is no mistake in the order of the Tribunal as the Tribunal has merely interpreted the proviso to Rule 8D(2)(i) and 8D(2)(ii) to the extent of restricting the disallowance to the total expenses claimed and matter has the Assessing Officer. Accordingly, we assessee made in the Miscellaneous Application. net interest expenses disallowed under rule 8D(2)(i) tax Rules, 1962. We have heard rival submission of the parties and perused the relevant material on record. In the impugned order, the I Appellate Tribunal (ITAT) held that the interpretation of the assessee of restricting the disallowance only to the extent of expenses in the nature of administrative cost is not emanating from clear language of proviso to Rule 8D(2)(ii) of th which restrict the disallowance under Rule 8D(2)(i) and 8D(2)(ii) up to the total expenditure claimed by the assessee. Accordingly, the ITAT has restored the matter back to the file of the Before us, the Ld. counsel for the assessee has submitted that the Tribunal has not considered the disallowance in respect of net interest while working out disallowance under Rule 8D(2)(i) of the Rules. In our opinion, there is no mistake in the order of the e Tribunal has merely interpreted the proviso to Rule 8D(2)(i) and 8D(2)(ii) to the extent of restricting the disallowance to the total expenses claimed and matter has been restored back to ficer. Accordingly, we dismiss the plea of the essee made in the Miscellaneous Application. Birla Group Holdings Pvt. Ltd. 2 MA No. 164/M/2024 net interest expenses disallowed under rule 8D(2)(i) We have heard rival submission of the parties and perused the In the impugned order, the Income-tax Appellate Tribunal (ITAT) held that the interpretation of the only to the extent of is not emanating from clear language of proviso to Rule 8D(2)(ii) of the Income-tax which restrict the disallowance under Rule 8D(2)(i) and 8D(2)(ii) up to the total expenditure claimed by the assessee. Accordingly, the ITAT has restored the matter back to the file of the counsel for the assessee has submitted that the Tribunal has not considered the disallowance in respect of net interest while working out disallowance under Rule 8D(2)(i) of the Rules. In our opinion, there is no mistake in the order of the e Tribunal has merely interpreted the proviso to Rule 8D(2)(i) and 8D(2)(ii) to the extent of restricting the disallowance to restored back to the plea of the 4. In the result, the Miscellaneous Application of the assessee is dismissed. Order pronounced in the open Court on Sd/ (RAHUL CHAUDHARY JUDICIAL MEMBER Mumbai; Dated: 16/10/2024 Rahul Sharma, Sr. P.S. Copy of the Order forwarded to 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. //True Copy// In the result, the Miscellaneous Application of the assessee is ronounced in the open Court on 16 Sd/- Sd/ (RAHUL CHAUDHARY) (OM PRAKASH KANT JUDICIAL MEMBER ACCOUNTANT MEMBER Copy of the Order forwarded to : BY ORDER, (Assistant Registrar) ITAT, Mumbai Birla Group Holdings Pvt. Ltd. 3 MA No. 164/M/2024 In the result, the Miscellaneous Application of the assessee is 16/10/2024. Sd/- OM PRAKASH KANT) ACCOUNTANT MEMBER BY ORDER, (Assistant Registrar) ITAT, Mumbai "