Bosch Chassis Systems India Ltd., Pune V. Deputy Commissioner of Income-tax,

ITA 1375/PUN/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 9052 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 5 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 27-03-2018
• Assessment Year: 2009-2010
• Appeal Filed On: 23-10-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 143(3); 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A , PUNE , , BEFORE MS. SUSHMA CHOWLA, JM AND SHRI ANIL CHATURVEDI, AM . / ITA NO. 1 375 /P U N/201 5 / ASSESSMENT YEAR : 20 09 - 10 BOSCH CHASIS SYSTEMS INDIA LTD., GAT NO.306, NANEKARWADI, CHAKAN, PUNE 410501 . / APPELLANT AAACK7312E VS. THE DY. COMMISSIONER OF INCOME TAX, CIRCLE 1(1), PUNE . / RESPONDENT / APPELLANT BY : S HRI NIKHIL PATHAK / RESPONDENT BY : SHRI AJAY MODI / DATE OF HEARING : 27 .0 3 . 201 8 / DATE OF PRONOUNCEMENT: 28 . 0 3 .201 8 / ORDER PER SUSHMA CHOWLA, J M : TH E APPEAL FILED BY THE ASSESSEE IS AGAINST THE ORDER OF CIT (A) - 13 , PUNE , DATED 21 . 0 8 .201 5 RELATING TO ASSESSMENT YEAR 20 09 - 10 AGAINST ORDER PASSED UNDER SECTION 143(3) OF THE INCOME - TAX ACT , 1961 (IN SHORT THE AC T) . 2 . THOUGH THE ASSESSEE HAS RAISED SEVERAL GROUNDS OF APPEAL BUT THE ISSUE RAISED IS AS PER GROUND OF APPEAL NO.1.1, WHICH READS AS UNDER: - 1.1 THE LEARNED CIT(A) ERRED IN CONFIRMING DISALLOWANCE OF RS.15,36,442/ - AS INCURRED IN RELATION TO EXEMPTED DIVIDEND INCOME U/S 14A BY APPLYING RULE 8D WHILE ASSESSING TOTAL INCOME AS PER REGULAR PROVISIONS OF THE INCOME TAX ACT, 1961. ITA NO. 1375 /P U N/20 1 5 BOSCH CHASIS SYSTEMS INDIA LTD. 2 3. THE BALANCE GROUNDS OF APPEAL ARE ARGUMENTATIVE IN NATURE. 4. THE ASSESSEE IS IN APPEAL AGAINST THE ORDERS OF AUTHORITIES B ELOW AGAINST DISALLOWANCE MADE UNDER SECTION 14A OF THE ACT READ WITH RULES 8D(III) OF INCOME TAX RULES, 1961 (IN SHORT THE RULES). 5. BRIEFLY, IN THE FACTS OF THE CASE, THE ASSESSEE WAS A PUBLIC LIMITED COMPANY AND WAS ENGAGED IN THE MANUFACTURE AND SA LE OF DIFFERENT ITEMS AT DIFFERENCE PLACES. DURING THE YEAR UNDER CONSIDERATION, THE ASSESSEE HAD RECEIVED DIVIDEND INCOME OF 2,43,47,017/ - , WHICH WAS CLAIMED AS EXEMPT UNDER SECTION 10(34) / 10(35) OF THE ACT. THE ASSESSING OFFICER INVOKED THE PROVISIONS OF SECTION 14A OF THE ACT AND AFTER ELABORATING ON THE ISSUE, APPLIED THE PROVISIONS OF RULE 8D(III) OF THE RULES. SINCE T HE ASSESSEE WAS NOT MAINTAINING SEPARATE DETAILS OF EXPENDITURE RELATING TO TAX FREE AND TAXABLE INCOME, THE ASSESSING OFFICER COMPUTED THE DISALLOWANCE UNDER RULE 8D(III) OF THE RULES AT 15,36,442/ - . 6. THE DISALLOWANCE MADE BY THE ASSESSING OFFICER WA S UPHELD BY THE CIT(A), SINCE THE DISALLOWANCE WAS WORKED OUT UNDER SPECIFIC PROVISIONS OF RULE 8D(III) OF THE RULES. 7. THE ASSESSEE IS IN APPEAL AGAINST THE ORDER OF CIT(A). 8. THE LEARNED AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE PLACED RELIANCE ON T HE SUBMISSIONS MADE BEFORE THE AUTHORITIES BELOW. ITA NO. 1375 /P U N/20 1 5 BOSCH CHASIS SYSTEMS INDIA LTD. 3 9. THE LEARNED DEPARTMENTAL REPRESENTATIVE FOR THE REVENUE ON THE OTHER HAND, PLACED RELIANCE ON THE ORDERS OF AUTHORITIES BELOW. 10. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. THE LIMIT ED ISSUE WHICH ARISES IS AGAINST DISALLOWANCE MADE UNDER SECTION 14A OF THE ACT. THE YEAR UNDER APPEAL IS ASSESSMENT YEAR 2009 - 10 WHEN THE PROVISIONS OF RULE 8D(III) OF THE RULES WERE ON STATUTE. DURING THE YEAR UNDER CONSIDERATION, THE ASSESSEE HAD EARN ED DIVIDEND INCOME AT 2,43,47,017/ - . THE ASSESSING OFFICER HAD APPLIED THE PROVISIONS OF RULE 8D(III) OF THE RULES TO WORK OUT THE DISALLOWANCE OF ADMINISTRATIVE EXPENSES INCURRED FOR EARNING THE DIVIDEND INCOME. THE CASE OF REVENUE IS THAT IN THE ABSENCE OF ANY SEPARATE DE TAILS BEING MAINTAINED FOR THE EXEMPT AND TAXABLE INCOME, DISALLOWANCE HAS TO BE WORKED OUT BY APPLYING THE PROVISIONS OF RULE 8D(III) OF THE RULES. WE FIND MERIT IN THE SAID STAND OF REVENUE AND UPHOLD THE SAME. IN VIEW OF SETTLED POSITION, WE UPHOLD TH E DISALLOWANCE MADE UNDER SECTION 14A OF THE ACT READ WITH RULE 8D(III) OF THE RULES AT 15,36,442/ - . THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE ARE THUS, DISMISSED. 11 . IN THE RESULT, THE APPEAL OF ASSESSEE IS DISMISSED. ORDER PRONOUNCED ON THIS 28 TH D AY OF MARCH , 201 8 . SD/ - SD/ - (ANIL CHATURVEDI ) (SUSHMA CHOWLA ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE ; DATED : 28 TH MARCH , 201 8 . GCVSR ITA NO. 1375 /P U N/20 1 5 BOSCH CHASIS SYSTEMS INDIA LTD. 4 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT ; 2. / THE RESPONDENT; 3. ( ) / THE CIT (A) - 13 , PUNE ; 4. THE PR.CIT - 1 / CIT (IT/TP) , PU NE ; 5. , , / DR A , ITAT, PUNE; 6. / GUARD FILE. / BY ORDER , // TRUE COPY // / SR. PRIVATE SECRETARY , / ITAT, PUNE