Jay Shree Tea & Industries Ltd., Kolkata V. DCIT, Circle - 4, Kolkata, Kolkata

ITA 1539/KOL/2010

• Counselvise Citation: 153923514 RSA 2010
• Duration Of Justice: 11 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-07-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2005-2006
• Appeal Filed On: 05-08-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P S DUTTA
• Assessee Lawyers: B K CHATURVEDI

Judgement Text

, , , , , , ,, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : KOLKATA [ . . . . . . . . , ,, , , ,, , . . . . . .. . ! ! ! ! , ' ' ' ' ] [BEFORE HONBLE SHRI B. R. MITTAL, JM & HONBLE SHRI S.V. MEHROTRA, AM] #$ #$ #$ #$ / I.T.A NO. 1539/KOL/2010 %& '() %& '() %& '() %& '()/ // / ASSESSMENT YEAR : 2005-06 JAYSHREE TEA & INDUSTRIES LIMITED -VS.- DY. COMMISSIONER OF INCOME TAX KOLKATA [PAN : AAACJ 7788 D] CIRCLE-IV, KOLKATA. [ +, +, +, +, /APPELLANT ] ]] ] [ ./+, ./+, ./+, ./+,/ // / RESPONDENT ] ]] ] +, +, +, +, / FOR THE APPELLANT : SHRI B. K. CHATURVEDI ./+, ./+, ./+, ./+, / FOR THE RESPONDENT : SHRI P. S. DUTTA 0 / ORDER . . . . . .. . ! ! ! ! , ' ' ' ' PER S. V. MEHROTRA, A. M. THE ASSESSEE HAS FILED THIS APPEAL FOR ASSESSMENT YEAR 2005-06 AGAINST THE ORDER OF THE LD. CIT(A)-XIX, KOLKATA DATED 28.06.2010. 2. THE ASSESSEE, IN THE RELEVANT ASSESSMENT YEAR, W AS ENGAGED IN THE BUSINESS OF GROWING AND MANUFACTURING OF TEA, CHEMICALS, FERTILIZERS, TEA T RADING, WAREHOUSING, DEVELOPMENT OF REAL ESTATE, EDUCATIONAL ACTIVITIES AND CALL CENTRE. THE ASSESSI NG OFFICER NOTICED THAT ASSESSEE HAD CREDITED RS.4,93,67,788/- ON ACCOUNT OF DIVIDEND WHICH WAS T REATED AS EXEMPT U/S. 10(34) & 10(35) OF THE INCOME TAX ACT BUT NO EXPENDITURE HAD BEEN ATTRIBUT ED FOR EARNING THIS EXEMPTED INCOME. HE ESTIMATED 5% OF THE DIVIDEND INCOME TOWARDS ITS EAR NING AND MADE DISALLOWANCE OF RS.24,68,389/-. THE LD. CIT(A) DIRECTED THE ASSESSI NG OFFICER TO RECOMPUTE THE AMOUNT OF DISALLOWANCE AS PER PROVISIONS OF RULE 8D OF THE IN COME TAX RULES. 3. HAVING HEARD BOTH THE PARTIES, WE FIND THAT HON BLE MUMBAI HIGH COURT IN THE CASE OF GODREJ & BOYCE MFG. CO. LTD. VS. DCIT [2010] 328 IT R 81 (BOM.) HAS HELD THAT RULE 8D IS PROSPECTIVE AND IS APPLICABLE FROM ASSESSMENT YEAR 2008-09 ONLY. THIS BEING ASSESSMENT YEAR ITA NO. 1539/KOL/20 10 2 2005-06, RULE 8D WAS NOT APPLICABLE. WE, THEREFORE, RESTORE THE MATTER TO THE FILE OF LD. CIT(A) TO DECIDE THIS GROUND ON MERIT. IN THE RESULT, CROSS O BJECTION IS ALLOWED. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. 0 0 0 0 '1 '1 '1 '1 2 2 2 2 1% 3 4 1% 3 4 1% 3 4 1% 3 4 5' 5' 5' 5' ORDER PRONOUNCED IN THE COURT ON 13.07. 2011. SD/- SD/- [ . . . . . . . . , ,, , ] [ . . . . . .. . ! ! ! ! , ' ' ' ' ] [ B. R. MITTAL ] [ S.V. MEHROTRA ] JUDICIAL MEMBER ACCOUNTANT ME MBER ( (( (5' 5' 5' 5') )) ) DATED : 13.07.2011. 0 8 .9 :9(/ COPY OF THE ORDER FORWARDED TO: 1. +, /APPELLANT- JAYSHREE TEA & INDUSTRIES LIMITED, 10, CAMAC STREET, KOLKATA-700 017. 2 ./+, / RESPONDENT : DY. COMMISSIONER OF INCOME TAX, CIRC LE-IV, P-7, CHOWRINGHEE SQUAR E, KOLKATA-700 069. 3. 0%/ THE CIT, 4. 0% ()/ THE CIT(A), KOLKATA. 5. '3 .%/ DR, KOLKATA BENCHES, KOLKATA [/9 ./ TRUE COPY ] 0%1/ BY ORDER , #A /ASSTT REGISTRAR [KKC 'BC %DA E' /SR.PS]