SANAT M DALAL SECURITIES P. LTD, MUMBAI V. DCIT CIR 4(2), MUMBAI

ITA 1255/MUM/2011

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 75808 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2014
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: H
• Next Hearing Date: 25-02-2014
• Assessment Year: 2006-2007
• Appeal Filed On: 10-02-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SU RENDRA KUMAR
• Keywords: Opportunity of being heard
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL H BENCH, MUMBAI . . , . . , BEFORE SHRI B R MITTAL, JM & SHRI B R BASKARAN , AM ./I.T.A. NO.1255/MUM/2011 ( ' ' ' ' ' '' ' / ASSESSMENT YEAR : 2006-07) SANAT M DALAL SECURITIES P LTD G-3 ORICON HOUSE 12 K DUBHASH MARG MUMBAI 400 003 / VS. THE DY COMMR OF INCOME TAX CIRCLE 4(2), MUMBAI ./PAN : AAFCS1400A ( % /APPELLANT ) ( &'% / RESPONDENT ) % ( / APPELLANT BY : NONE &'% ( / RESPONDENT BY : SHRI SURENDRA KUMAR, DR ( + /DATE OF HEARING : 25.02.2014 ( + / DATE OF PRONOUNCEMENT : 26 TH , FEB 2014 / O R D E R PER B R BASKARAN, AM : THE APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER DATED 10.2.2010 PASSED BY LD CIT(A) AND IT RELATES TO THE ASSESSMENT YEAR 2006-07. NONE APPEARED ON BEHALF OF THE ASSESSEE AND THEREFO RE, WE PROCEED TO DISPOSE OF THIS APPEAL EX-PARATE. 2 THE ONLY ISSUE URGED IN THIS APPEAL RELATES TO THE DISALLOWANCE OF RS. 8,36,668/- MADE BY THE AO BY INVOKING PROVISIO NS OF SEC. 14A R.W.R 8D OF THE I T RULES. SANAT M DALAL SECURITIES P LTD 2 3 IN THE GROUNDS OF APPEAL THE ASSESSEE HAS CONTEND ED THAT RULE 8D HAS BEEN INSERTED ONLY ON 24.3.2008 AND HENCE, THE SAME SHOULD NOT HAVE BEEN APPLIED FOR THE YEAR UNDER CONSIDERATION. 4 WE HAVE HEARD THE LD DR AND GONE THROUGH THE ORDE R PASSED BY THE LD CIT(A). WE NOTICE THAT THE LD CIT(A) HAS FOLLOWED THE DECISION RENDERED BY THE MUMBAI SPECIAL BENCH IN THE CASE OF DAGA CAPITAL M ANAGEMENT P LTD IN ITA NO. 857/MUM/2003 TO DECIDE THIS ISSUE AGAINST THE A SSESSEE. THE DECISION OF THE SPECIAL BENCH IN THE ABOVE CITED CASE HAS SINCE BEEN REVERSED BY THE HONBLE BOMBAY HIGH COURT IN THE CASE OF GODREJ BOY CE MFG P LTD VS DCIT REPORTED IN 328 ITR 81. THEREFORE, IN VIEW OF THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT REFERRED ABOVE, WE ARE OF THE VIEW THAT THE IMPUGNED ISSUE HAS TO BE DECIDED AFRESH BY THE LD CIT(A). ACCORDINGLY, WE SET ASIDE THE ORDER OF LD CIT(A) ON THIS ISSUE AND RESTORE THE SA ME TO HIS FILE FOR CONSIDERING THE SAME AFRESH IN ACCORDANCE WITH LAW AFTER AFFORD ING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. / '/ ( 1( 34 ( ORDER PRONOUNCED IN THE OPEN COURT ON 26 TH FEB 2014 . ( 26TH FEB 2014 ( SD/- SD/- ( B R MITTAL ) ( B R BASKARAN ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; ; DATED 26 TH , FEB 2014 .../ RAJ , SR. PS SANAT M DALAL SECURITIES P LTD 3 ( &> ?> ( &> ?> ( &> ?> ( &> ?>/ COPY OF THE ORDER FORWARDED TO : 1. % / THE APPELLANT 2. &'% / THE RESPONDENT. 3. @() / THE CIT(A)- 4. @ / CIT 5. > &, , / DR, ITAT, MUMBAI 6. ' / GUARD FILE. / BY ORDER, '> & //TRUE COPY// / // / ( DY./ASSTT. REGISTRAR) , , , , / ITAT, MUMBAI