THOMAS COOK INDIA LTD, MUMBAI V. DCIT 1(3)(2), MUMBAI

CO 104/MUM/2018

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 0700 (ITAT-MUMBAI)
• Duration Of Justice: 7 month(s) 6 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 27-11-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2008-2009
• Appeal Filed On: 20-04-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: D G
• Keywords: Earning of tax free income; Tax effect
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH, MUMBAI BEFORE SHRI SHAMIM YAHYA, AM AND SHRI RAM LAL NEGI , JM CO NO. 104/ MUM/ 2018 (ARISING OUT OF ITA NO. 253/MUM/2017) (ASSESSMENT YEAR: 2008 - 09) THOMAS COOK (INDIA) LIMITED A WING, 11 TH FLOOR, N. M. JOSHI MARG, LOWER PAREL, MUMBAI - 400 013 VS. DY. CIT - 1(3)(2), AAYKAR BHAVAN, ROOM NO. 540, 5 TH FLOOR, M. K. ROAD, MUMBAI - 400 020 PAN/GIR NO. AAACT 4050 C ( APPELLANT ) : ( RESPONDENT ) APPELLANT BY : SHRI PERCY PARDIWALA RESPONDENT BY : SHRI D. G. PANSARI DATE OF HEARING : 27.11.2018 DATE OF PRONOUNCEMENT : 27.11 .2018 O R D E R PER SHAMIM YAHYA, A. M.: THIS CROSS OBJECTION HAD BEEN FILED BY THE ASSESSEE IN CONNECTION WITH I NCOME T AX A PPEAL NO.253/MUM/2017 FOR THE ASSESSMENT YEAR (A.Y. FOR SHORT) 2008 - 09. 2. T HE GROUNDS RAISED BY THE ASSESSEE IN THE CROSS OBJECTION READ AS UNDER : 1. THE APPELLANT SUBMITS THAT DISALLOWANCE UNDER SECTION 14A O F THE ACT SHOULD BE RESTRICTED TO RS. 1,09,922/ - 2 . THE APPELLANT FURTHER SUBMITS THAT DISALLOWANCE UNDER SECTION 14A OF THE ACT IS NOT WARRANTED AS THE APPELLANT HAS MADE THE INVESTMENT OUT OF ITS OWN FUNDS AND IT HAS NOT INCURRED ANY DIRECT EXPENDITURE TOWARDS EARNING OF EXEMPT INCOME. 3. WITHOUT PREJUDICE TO THE ABOVE, THE APPELLANT SUBMITS THAT THE DISALLOWANCE UNDER SECTION 14A SHOULD BE RESTRICTED TO THE AMOUNT OF EXEMPT INCOME EARNED BY THE APPELLANT. 3. A T THE OUTSET , THE LEARNED COUNSEL OF THE ASSESSEE IS STATED THAT THE I NCOME T AX A PPEAL NO.253/MUM/ 2017 BY THE R EVENUE HAS BE EN HEARD BY THE TRIBUNAL ON ACCOUNT OF LOW TAX EFFECT. THE LEARNED COUNSEL OF THE ASSESSEE SUBMITTED THAT SINCE THE I NCOME T AX 2 CO NO.104/MUM/2018 A PPEAL OF THE R EVENUE IN THIS CASE HAS BEEN HEARD TO BE LIABLE TO BE DISMISSED ON ACC OUNT OF LOW TAX EFFECT, THIS CROSS OBJECTION BY THE ASSESSEE SHALL BECOME INFRUCTUOUS . 4. THE LD. DEPARTMENTAL REPRESENTATIVE (LD. DR FOR SHORT) FAIRLY AGREED TO THIS PROPOSITION . 5. UP ON CAREFUL CONSIDERATION WE NOTE THAT SINCE THE I NCOME T AX A PPEAL BY THE R EVENUE IN CONNECTION WITH WHICH THIS CROSS OBJECTION HAS BEEN FILED HAS BEEN H EARD BY THE TRIBUNAL AS HAVING L OW TAX EFFECT LIABLE TO BE DISMISSED AS PER THE LATEST CBDT C IRCULAR ON THE ISSUE, WE FIND CONSIDERABLE COGENCY IN THE SUBMISSION OF THE LEAR NED COUNSEL OF THE ASSESSEE THAT THIS CROSS OBJECTION BY THE ASSESSEE HAS BECOME INFRUCTUOUS. ACCORDINGLY , THIS CROSS OBJECTION BY THE ASSESSEE IS DISMISSED AS INFRUCTUOUS . 6. IN THE RESULT, THIS CROSS OBJECTION FILED BY THE ASSESSEE STANDS DISMISSED AS INFRUCTUOUS . ORDER PRONOUNCED IN THE OPEN COURT ON 2 7 . 1 1 . 2 0 1 8 S D / - S D / - ( RAM LAL NEGI ) (SHAMIM YAHYA) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED : 2 7 . 1 1 . 2 0 1 8 ROSHANI , SR. PS COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT - CONCERNED 5. DR, ITAT, MUMBAI 6. GUARD FILE BY ORDER, (DY./ASSTT. REGISTRAR) ITAT, MUMBAI