PIVOTAL SECURITIES P. LTD, MUMBAI V. ADDL CIT 2(20, MUMBAI

ITA 1304/MUM/2009

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 9048 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 10 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-01-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 22-12-2010
• Assessment Year: 2005-2006
• Appeal Filed On: 26-02-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D SONGATE
• Keywords: Earning of tax free income
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL 'C' BENCH, MUMBAI BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER ITA NO. 1304/MUM/2009 (ASSESSMENT YEAR: 2005-06) M/S. PIVOTAL SECURITIES PVT. LTD. ADDL. CIT 2(2) 14TH FLOOR, MAKER CHAMBER IV AAYAKAR BHAVAN, M.K. R OAD NARIMAN POINT, MUMBAI 400021 VS. MUMBAI 400020 PAN - AAACP 3754 F APPELLANT RESPONDENT APPELLANT BY: SHRI HIRO RAI RESPONDENT BY: SHRI D. SONGATE O R D E R PER B. RAMAKOTAIAH, A.M. THIS APPEAL BY THE ASSESSEE IS AGAINST THE ORDER OF THE CIT(A)-II, MUMBAI DATED 13.02.2009. THERE ARE CROSS APPEALS FO R THIS ASSESSMENT YEAR BY THE ASSESSEE AND THE REVENUE AND BOTH THE COUNSE LS AGREED THAT THE ISSUES ARE INDEPENDENT AND THE APPEAL OF THE ASSESS EE CAN BE DECIDED AS THE ONLY ISSUE INVOLVED IS DISALLOWANCE UNDER SECTION 1 4A. 2. THE A.O. NOTICING THAT ASSESSEE CLAIMED DIVIDEND I NCOME OF ` 15,70,114/- AS EXEMPT DISALLOWED ` 5,17,271/- HOLDING THE EXPENSES ARE ATTRIBUTABLE TO EXEMPT INCOME. THE MATTER WAS CARRI ED TO THE CIT(A) AND THE CIT(A), IN THE COURSE OF APPELLATE PROCEEDINGS, ENH ANCED THE DISALLOWANCE TO ` 11,39,691/- INVOKING RULE 8D. 3. SINCE THE PROVISIONS OF RULE 8D ARE NOT APPLICABLE FOR THE ASSESSMENT YEAR UNDER CONSIDERATION AS HAS BEEN CONSIDERED AND DECIDED BY THE HON'BLE BOMBAY HIGH COURT IN THE CASE OF GODREJ & BOYCE MFG . CO. LTD. VS. DCIT 328 ITR 81 AND AS THE A.O. HAS TO CONSIDER THE DISA LLOWANCE AT A REASONABLE AMOUNT, THE MATTER IS TO BE RESTORED TO THE FILE OF THE A.O. TO CONSIDER THE SAME. IN VIEW OF THIS, THE ISSUE OF DISALLOWANCE U/ 14A IS RESTORED TO THE FILE OF THE A.O. TO EXAMINE THE FACTS KEEPING IN MIND TH E PRINCIPLES OF LAW AS ITA NO. 1304/MUM/2009 M/S. PIVOTAL SECURITIES PVT. LTD. 2 ESTABLISHED BY THE JUDICIAL FORUMS AND RE-DETERMINE THE REASONABLE AMOUNT AS DISALLOWANCE. 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FO R STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 5 TH JANUARY 2011. SD/- SD/- (D. MANMOHAN) (B. RAMAKOTAIAH) VICE PRESIDENT ACCOUNTANT MEMBER MUMBAI, DATED: 5 TH JANUARY 2011 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) II, MUMBAI 4. THE CIT II, MUMBAI CITY 5. THE DR, C BENCH, ITAT, MUMBAI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI N.P.