Maharashtra Scooters Ltd., Pune V. DCIT, Pune

CO 8/PUN/2011

• Counselvise Citation: [2011] 122 COUNSELVISE.COM (IT) 6480 (ITAT-PUNE)
• Duration Of Justice: 3 month(s) 16 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 23-09-2011
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2004-2005
• Appeal Filed On: 07-06-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: HARSHAR SHARMA
• Assessee Lawyers: P S KARPE
• Keywords: Earning of tax free income
• Section: 14A

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A, PUNE BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER AND SHRI D.KARUNAKAR RAO, ACCOUNTANT MEMBER C.O. NOS.07 & 08/PN/2011 (ARISING OUT OF ITA NOS.71 & 72/PN/2010) ASSESSMENT YEARS: 2005-06 AND 2004-05 MAHARASHTRA SCOOTERS LTD., ... APPELLANT C/O. BAJAJ AUTO LTD., MUMBAI PUNE ROAD, AKURDI, PUNE PA NO.AABCM 1799 E VS. DY.CIT, CIRCLE-9 ... RESPONDENT PUNE APPELLANT BY: SHRI P.S.KARPE RESPONDENT BY: SHRI HARSHAR SHARMA DATE OF HEARING: 20- 9-2011 DATE OF PRONOUNCEMENT: 23 -9-2011 ORDER PER SHAILENDRA KUMAR YADAV, JM BOTH THE CROSS APPEALS ARISE OUT OF APPEALS FILED BY THE REVENUE IN ITA NO.71 & 72/PN/2010 FOR THE ASSESSMEN T YEARS 2005-06 AND 2004-05. 2. COMMON GROUNDS RAISED IN BOTH THE CROSS OBJECTIO N READ AS UNDER:- 1. IN THE FACTS AND CIRCUMSTANCES OF THE CASE, THE CIT(A) HAS ERRED LEGALLY AND FACTUALLY IN DISALLOWI NG AN AMOUNT OF RS.1,00,000 (RS. ONE LAKH ONLY) BEING ESTIMATED EXPENSES, AS ATTRIBUTABLE TO EARNING THE EXEMPT INCOME I.E. DIVIDEND INCOME AND INTEREST FRO M TAX FREE BONDS, AND TREATING THE SAME AS NOT ALLOWA BLE EXPENDITURE, IN COMPUTATION OF THE TOTAL INCOME. 2 THE CIT(A) OUGHT TO HAVE HELD THAT, TAX HAD BEEN PA ID ON THE DIVIDEND DISTRIBUTING COMPANIES UNDER SECTIO N 115(O) OF I.T.ACT, 1961 AND, THEREFORE, NO DISALLOW ANCE OUGHT TO HAVE BEEN UNDER SECTION 14A OF THE ACT IN RESPECT OF THE SAME. 2. IN THE FACTS AND CIRCUMSTANCES OF THE CASE, THE CIT(A) HAS ERRED LEGALLY AND FACTUALLY IN CONFIRMIN G INTEREST INCOME TO BE TAXED UNDER THE HEAD INCOM E FROM OTHER SOURCES. 2. AFTER HEARING BOTH THE SIDES AND HAVING PERUSED THE MATERIAL ON RECORD, WE FIND THAT THIS ISSUE HAD COM E UP FOR CONSIDERATION BEFORE THE TRIBUNAL IN ASSESSEES OWN CASE AGAINST THE APPEALS FILED BY THE REVENUE, WHEREIN, THE TRIBUNAL HAS UPHELD THE ORDER OF THE CIT(A) FOLLOWI NG THE DECISION OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2000-2001. IN VIEW OF THIS, THE CR OSS OBJECTIONS FILED BY THE ASSESSEE ARE RENDERED INFRU CTUOUS AND, ACCORDINGLY, SAME ARE DISMISSED. 3. IN THE RESULT, THE CROSS OBJECTIONS ARE DISMISSE D AS INFRUCTUOUS. DECISION PRONOUNCED ON 23 RD SEPTEMBER 2011. SD/- SD/- (D.KARUNAKAR RAO) (SHAILENDRA KUMAR YAD AV) ACCOUNTANT MEMBER JUDICIAL MEMBER PUNE DATED THE 23 RD SEPTEMBER 2011 PARIDA COPY OF THE ORDER IS FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) PUNE 4. THE CIT PUNE 5. THE D.R, ITAT PUNE BENCH, PUNE 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL 3