CHANDULAL MONJI HURBADA, MUMBAI V. JCIT RG 13(2), MUMBAI

ITA 1533/MUM/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 0960 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-01-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2010-2011
• Appeal Filed On: 18-03-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: PURUSHOTTAM KUMAR LD
• Assessee Lawyers: MATHURIA LD
• Section: 143(3)

Judgement Text

ITA.NO.1533/MUM/2016 CHANDULAL MONJI HARBADA ASSESSMENT YEAR-2010-11 IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, MUMBAI , , BEFORE SHRI JOGINDER SINGH, JM AND SHRI MANOJ KUMAR AGGARWAL, AM ./I.T.A. NO.1533/MUM/2016 ( / ASSESSMENT YEAR: 2010-11) CHANDULAL MONJI HA RBADA (PROP. S.M.TRADING CO.) 332, VYAPAR BHAVAN P.DMELLO ROAD, MASJID BUNDER MUMBAI - 400 0 09 / VS. JOINT COMMISSIONER OF INCOME TAX RANGE 13(2) ROOM NO.477,4 TH FLOOR AAYKAR BHAVAN,M.K.ROAD MUMBAI - 400 020 ! ./ ./PAN/GIR NO. AAAPH-1528-C ( !# /APPELLANT ) : ( $%!# / RESPONDENT ) A SSESSEE BY : M.S.MATHURIA,LD. AR RE VENUE BY : PURUSHOTTAM KUMAR, LD. SR. DR / DATE OF HEARING : 05/12/2017 / DATE OF PRONOUNCEMENT : 10/01/2018 / O R D E R PER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. THE CAPTIONED APPEAL BY ASSESSEE FOR ASSESSMENT YEAR [AY] 2010-11 ASSAILS THE ORDER OF THE LD. COMMISSIONER O F INCOME-TAX (APPEALS)-28 [CIT(A)], MUMBAI, APPEAL NO. CIT(A)-28/JCIT-13(2)/IT- 11/2013-14 DATED 23/12/2015 QUA CONFIRMATION OF CERTAIN DISALLOWANCES ITA.NO.1533/MUM/2016 CHANDULAL MONJI HARBADA ASSESSMENT YEAR-2010-11 2 OUT OF WHICH LD. COUNSEL FOR ASSESSEE [AR] HAS CONT ESTED ONLY FOR DISALLOWANCE U/S 14A. THE ASSESSMENT FOR IMPUGNED A Y WAS FRAMED BY LD. JOINT COMMISSIONER OF INCOME TAX RANGE 13(2), M UMBAI [AO] U/S 143(3) OF THE INCOME TAX ACT ON 05/03/2013. 2.1 BRIEFLY STATED, THE ASSESSEE BEING RESIDENT INDIVIDUAL ENGAGED IN EXPORTS OF ONIONS UNDER PROPRIETORSHIP CONCERN NAMELY S.M.TRADING COMPANY WAS ASSESSED U/S 143(3) AT RS.159.96 LACS AFTER CE RTAIN DISALLOWANCES AS AGAINST RETURNED INCOME OF RS.150. 61 LACS FILED BY THE ASSESSEE ON 30/09/2010. THE SOLITARY ISSUE INVOLVED UNDER THE APPEAL IS DISALLOWANCE U/S 14A. 2.2 DURING ASSESSMENT PROCEEDINGS, IT WAS NOTED THA T THE ASSESSEE EARNED EXEMPT INTEREST INCOME FROM TAX FREE BONDS, DIVIDENDS ETC. AGGREGATING IN ALL TO RS.34.44 LACS, WHICH CALLED F OR DISALLOWANCE U/S 14A. SINCE THE ASSESSEE DID NOT MAKE ANY SUO-MOTO DISALLOWANCE, LD. AO, APPLYING RULE 8D COMPUTED THE SAME AT RS.8,26,0 13/- WHICH COMPRISED OF INTEREST DISALLOWANCE U/R 8D(2)(II) FO R RS.4,91,998/- & EXPENSE DISALLOWANCE U/R 8D(2)(III) FOR RS,3,34,015 /-. 3. AGGRIEVED, THE ASSESSEE CONTESTED THE SAME WITH PARTIAL SUCCESS BEFORE LD.CIT(A) VIDE IMPUGNED ORDER DATED 23/12/20 15 WHERE LD.CIT(A) DELETED INTEREST DISALLOWANCE BY NOTICING THAT THERE WAS NO INCREMENTAL INVESTMENT DURING THE IMPUGNED AY BUT C ONFIRMED EXPENSES DISALLOWANCE OF RS.3,34,015/-. AGGRIEVED, THE ASSES SEE IS IN FURTHER APPEAL BEFORE US. 4. THE LD. AR DREW ATTENTION TO THE FACT THAT NO MA JOR INVESTMENTS WERE MADE BY THE ASSESSEE DURING IMPUGNED AY AND TH EREFORE, THE ITA.NO.1533/MUM/2016 CHANDULAL MONJI HARBADA ASSESSMENT YEAR-2010-11 3 DISALLOWANCE WAS ON HIGHER SIDE. PER CONTRA, LD. DR CONTENDED THAT THE DISALLOWANCE HAS TO BE COMPUTED AS PER THE PRESCRIB ED FORMULA ONLY. 5. HEARD THE RIVAL CONTENTIONS AND PERUSED RELEVANT MATERIAL ON RECORD. UPON PERUSAL OF FACTUAL MATRIX, WE NOTE THA T IT IS ADMITTED FACT THAT THE ASSESSEE HAS NOT MADE ANY MAJOR INVESTMENT DURING IMPUGNED AY AND MAJORITY OF THE INVESTMENTS HAVE BEEN MADE I N EARLIER YEARS. THE ASSESSEE HAS CONTENDED THAT IT HAS NOT INCURRED ANY EXPENSES TOWARDS THE SAME BUT LD. AO HAS, WITHOUT REBUTTING THE SAME , STRAIGHTWAY COMPUTED THE SAID DISALLOWANCE. THEREFORE, ON THE F ACTS OF THE CASE, WE RESTRICT THE IMPUGNED DISALLOWANCE TO RS.50,000/- A ND DELETE THE BALANCE ADDITIONS. 6. RESULTANTLY, THE ASSESSEES APPEAL STANDS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 10 TH JANUARY,2018 SD/- SD/- (JOGINDER SINGH) (MANOJ KUMAR AGGAR WAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 10.01.2018 . SR.PS:- THIRUMALESH ! / COPY OF THE ORDER FORWARDED TO : 1. !# / THE APPELLANT 2. $%!# / THE RESPONDENT 3. - ( ) / THE CIT(A) 4. - / CIT CONCERNED 5. $'/ , / , / DR, ITAT, MUMBAI 6. 0 / GUARD FILE / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI