Jamnalal Sons Private Limited, Wardha V. ACIT Wardha Circle, Wardha

ITA 105/NAG/2010

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 9661 (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. 105&106 /NAGPUR/2010 JAMNALAL SONS PVT. LTD., 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. 10 5&106 / NAGPUR / 20 10 ASSESSMENT YEAR : 2004 - 05 & 2005 - 06 JAMNALAL SONS PVT. LTD . WARDHA VS. ACIT, WARDHA CIRCLE WARDHA (APPELLANT) (RESPONDENT) PAN NO. AAACJ 3176H 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, ACCOU NTANT MEMBER: - THESE APPEALS HAVE BEEN FILED AGAINST THE ORDER OF THE CIT(A) DATED 25.2.2010. THE ASSESSEE HAS TAKEN TWO ISSUES IN EACH APPEAL, ONE RELATING TO THE VALIDITY OF THE RE - OPENING OF THE ASSESSMENT U/S 147 AND THE OTHER DISALLOWANCE U/S 14A O F 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 IN BOTH THE APPEALS STANDS DISMISSED AS NOT PRESSED. 3 . THE SECOND ISSUE IN B OTH THE APPEALS RELATE TO THE DISALLOWANCE MADE BY THE ASSESSING OFFICER 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 JURISDICTI ONAL HIGH COURT IN THE CASE OF GODREJ BOYCE MFG. LTD. VS. DCIT DATED 12.8.2010 . IN THIS CASE, WE ITA NO.105&106/NAGPUR/2010 JAMNALAL SONS PVT. LTD., WARDHA 2 NOTED THAT THE HON BLE HIGH COURT HAS HELD THAT RULE 8D IS NOT RETROSPECTIVE BUT IS PROSPECTIVE. THE RUL E 8D HAS BEEN INSERTED W.E.F. 24.3.2008. THE ASSESSMENT YEAR S INVOLVED ARE 2004 - 05 & 2005 - 06. 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 8 D. WE ACCORDINGLY, SET ASIDE THE ORDER OF THE CIT(A) IN BOTH THE APPEALS, BY DELETING THE DISALLOWANCE ON RS.1,29,22,096/ - IN ITA 105/NAG/2010 & RS.1,56,91,025/ - IN ITA NO.106/NAG/2010. 5 . IN THE RESULT, THE APPEALS FILED BY THE ASSESSEE ARE PARTLY ALLO WED. 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 OCTOBER , 20 1 2 COPY TO 1 JAMNALAL SONS PRIVATE LTD., BACHHRAJ BHAWAN, WARDHA 2 ACIT, WARDHA CIRCLE, WARDHA 3 CIT - II, NAGPUR 4 THE CIT (A) , NAGPUR 5 THE DR, ITAT, NAGPUR 6 GUARD FILE. BY ORDER SR. PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL NAGPUR