M/s Rishabha Trading Company, Wardha V. A.C.I.T. Wardha Circle,Wardha, Wardha

ITA 104/NAG/2010

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 9665 (ITAT-NAGPUR)
• Duration Of Justice: 2 year(s) 2 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-10-2012
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2004-2005
• Appeal Filed On: 06-08-2010
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: DR MILIND BHUSARI
• Assessee Lawyers: M A GOHEL
• Section: 14A; 147

Judgement Text

ITA NO. 104/NAG PUR/2010 M/S. RISHAB TRADING CO., WARDHA IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH , NAGPUR BEFORE: SHRI P.K. BANSAL , ACCOUNTANT MEMBER AND SHRI D.T. GARASIA , JUDICIAL MEMBER ITA NO. 104 / NAGPUR / 20 10 ASSESSMENT YEAR : 2004 - 05 M/S. RISHAB TRADING COMPANY WARDHA V S. ACIT, WARDHA CIRCLE WARDHA (APPELLANT) (RESPONDENT) PAN NO.AABFK 9307K APPELLANT BY: SHRI M.A. GOHEL, CA RESPONDENT BY: DR. MILIND BHUSARI, CIT(DR) DATE OF HEARING: 11.10.2012 DATE OF PRONOUNCEMENT: 16.10.2012 ORDER PER P.K. BANSAL, ACCOUNTANT MEMBE R: - THIS APPEAL HAS BEEN FILED AGAINST THE ORDER OF THE CIT(A) DATED 25.2.2010. THE ASSESSEE HAS TAKEN TWO ISSUES, ONE RELATING TO THE VALIDITY OF THE RE - OPENING OF THE ASSESSMENT U/S 147 AND THE OTHER, DISALLOWANCE U/S 14A OF THE INCOME - TAX ACT. 2. AT THE TIME OF HEARING, ISSUE RELATING TO THE VALIDITY OF THE RE - OPENING OF THE ASSESSMENT WAS NOT PRESSED. THEREFORE, GROUND RELATING TO THIS ISSUE STANDS DISMISSED AS NOT PRESSED. 3 . THE SECOND ISSUE RELATE TO THE DISALLOWANCE MADE BY THE ASSESSING OFF ICER U/S 14A OF THE INCOME - TAX ACT BY APPLYING RULE 8D OF THE INCOME TAX RULES, 1962. 4 . WE HEARD THE RIVAL SUBMISSIONS AND CAREFULLY CONSIDERED THE SAME ALONG WITH THE ORDER OF THE TAX AUTHORITIES AS WELL AS THE DECISION OF THE JURISDICTIONAL HIGH COUR T IN THE CASE OF GODREJ BOYCE MF G. LTD. VS. DCIT DATED 12.8.2010 . IN THIS CASE, WE NOTED THAT THE HON BLE HIGH COURT HAS HELD THAT RULE 8D IS NOT RETROSPECTIVE BUT IS PROSPECTIVE. THE RULE 8D HAS BEEN INSERTED W.E.F. 24.3.2008. THE ASSESSMENT YEAR ITA NO.104/NAGPUR/2010 M/S. RISHAB TRADING CO., WARDHA 2 INVOLVED IS 2004 - 05. SINCE THE RULE 8D IS NOT APPLICABLE, THEREFORE, IN OUR OPINION, CIT(A) WAS NOT CORRECT IN LAW IN CONFIRMING THE DISALLOWANCE U/S 14A READ WITH RULE 8D. WE ACCORDINGLY, SET ASIDE THE ORDER OF THE CIT(A), BY DELETING THE DISALLOWANC E ON RS.10,60,231/ - . 5 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. PRONOUNCED IN THE OPEN COURT ON 16.10 .20 1 2 SD/ - SD/ - ( D.T. GARASIA ) (P.K. BANSAL) JUDICIAL MEMBER ACCOUNTANT MEMBER VG/SPS NAGPUR DATED 16 TH O CTOBER , 20 1 2 COPY TO 1 M/S. RISHAB TRADING COMPANY, BACHHRAJ BHAWAN, WARDHA - 442 001. 2 ACIT, WARDHA CIRCLE, WARDHA 3 THE CIT (A) , NAGPUR 4 THE DR, ITAT, NAGPUR 5 GUARD FILE. BY ORDER SR. PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL NAGPUR