DURGERSHI ARJAN MAROO, NAVI MUMBAI V. ITO 22(3)(1), MUMBAI

ITA 1086/MUM/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 2647 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 5 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-07-2016
• Appeal Filed By: Assessee
• Bench Allotted: D
• Next Hearing Date: 25-07-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 07-02-2013
• Court: TRIBUNAL
• Department Lawyers: B S BIST
• Keywords: Salary income
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, MUMBAI BEFORE SHRI B.R. BASKARAN (AM) & PAWAN SINGH (JM) I.T.A. NO. 1086 /MUM/ 20 1 3 (ASSESSMENT YEAR 200 7 - 0 8 ) SHRI DURGERSHI ARJAN MAROO G - 19, APMC MARKET II PHASE - II, SECTOR - 9 VASHI NAVI MUMBAI - 400 705. VS . ITO WARD 22(3)(1) TOWER NO. 6 3 RD FLOOR ROOM NO. 306 VASHI RAILWAY STATION NAVI MUMBAI - 400 703. ( APPELLANT ) ( RESPONDENT ) PAN NO . AHFPM8634C ASSESSEE BY NONE DEPARTMENT BY SHRI B.S. BIST DATE OF HEARING 25 . 7 . 201 6 DATE OF PRONOUNCEMENT 25 .7 . 201 6 O R D E R PER B.R. BASKARAN (AM) : - THE APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 21.12.2012 PASSED BY LEARNED CIT(A) - 19, MUMBAI AND IT RELATES TO A.Y. 2007 - 08. 2. THE ASSESSEE IS AGGRIEVED BY THE DECISION RENDERED BY LEARNED CIT(A) ON FOLLOWING ISSUES: - A) DISALLOWANCE OF INTEREST OF ` 3,42,000/ - B) DISALLOWANCE MADE U/S. 14A OF THE ACT C) REJECTION OF CLAIM OF SET OFF OF LOSS 3. NONE APPEARED ON BEHALF OF THE ASSESSEE , EVEN THOUGH THE NOTICE OF HEARING WAS SE N T BY REGI STERED POST ON MORE THAN ONE OCCASION. HENCE WE PROCEED TO DISPOSE OF THE APPEAL EX - PARTE, WITHOUT PRESENCE OF THE ASSESSEE. 4. WE HAVE HEARD LEARNED DEPARTMENTAL REPRESENTATIVE AND PERUSED THE RECORD. THE FIRST ISSUE RELATES TO DISALLOWANCE OF INTEREST EXPENDITURE OF ` SHRI DURGERSHI ARJAN MAROO 2 3,42,000/ - . WE N OTICED THAT THE ASSESSEE HAD AG R E ED FOR THIS ADDITION BEFORE THE AO AND THE SUBMISSION OF THE ASSESSEE IS EXTRACTED IN PAGE NO. 2 OF THE ASSESSMENT ORDER. ACCORDINGLY, WE ARE OF THE VIEW THAT LEARNED CIT(A) WAS JUSTIFIED IN CONFIRMING THIS ADDITION. 5. NEXT ISSUE RELATES TO DISALLOWANCE MADE U/S. 14A OF THE ACT. WE NOTICED THAT THE DISALLOWANCE HAS BEEN WORKED OUT AS PER RULE 8D OF THE I.T. RULES , WHICH IS NOT HELD TO BE APPLICABLE FOR A.Y. 2007 - 08 BY HON'BLE BOMBAY HIG H COURT IN THE CASE OF GODREJ & BOYCE MANUFACTURING CO. LTD. (328 ITR 81). ACCORDINGLY, WE RESTORE THIS ISSUE TO THE FILE OF THE ASSESSING OFFICER WITH THE DIRECTION TO WORK OUT THE DISALLOWANCE U/S. 14A OF THE ACT ON REASONABLE BASIS. 6. NEXT ISSUE RELA TES TO REJECTION OF CLAIM OF SET OFF OF LOSS FROM OTHER SOURCES AGAINST SALARY INCOME. WE NOTICED THAT THE ASSESSING OFFICER HAS NOT GIVEN ANY REASON FOR REJECTING CLAIM OF THE ASSESSEE AND HENCE WE ARE OF THE VIEW THAT THIS ISSUE ALSO REQUIRES FRESH EXAMI NATION AT THE END OF THE ASSESSING OFFICER. ACCORDINGLY, WE SET ASIDE THE ORDER PASSED BY THE ASSESSING OFFICER ON THIS ISSUE. 7. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PU R POSES. ORDER HAS BE EN PRONOUNCED IN THE COURT ON 25 .7.2016 SD/ - SD/ - (PAWAN SINGH) (B.R.BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED : 25 / 7 / 20 1 6 COPY OF THE ORDER FORWAR DED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT 5. DR, ITAT, MUMBAI SHRI DURGERSHI ARJAN MAROO 3 6. GUARD FILE. BY ORDER, //TRUE COPY// ( DY./ASSTT. REGISTRAR) ITAT, MUMBAI PS