DCIT, Central Circle - XX, Kolkata, Kolkata V. M/s. Varanasi Commercial Ltd., Kolkata

ITA 1539/KOL/2011

• Counselvise Citation: 153923514 RSA 2011
• Duration Of Justice: 3 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-03-2012
• Appeal Filed By: Department
• Bench Allotted: C
• Assessment Year: 2007-2008
• Appeal Filed On: 11-11-2011
• Court: TRIBUNAL
• Department Lawyers: D ROY
• Assessee Lawyers: A K TULSIYAN
• Section: 14A

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL, BEN CH C, KOLKATA () BEFORE , ,, , , SHRI MAHAVIR SINGH, JUDICIAL MEMBER. /AND . .. . ! ! ! !. .. . , '# SHRI C.D.RAO, ACCOUNTANT MEMBER $ $ $ $ / ITA NO .1539 /KOL/2011 %& '(/ ASSESSMENT YEAR : 2007-08 (*+ / APPELLANT ) D.C.I.T., CENTRAL CIRCLE-XX, KOLKATA -%- -VS- (-.*+/ RESPONDENT ) M/S. VARANASI COMMERCIAL LTD., KOLKATA. (PAN:AAACV 8692 G) *+ / 0 '/ FOR THE APPELLANT: SHRI D.ROY -.*+ / 0 '/ FOR THE RESPONDENT: SHRI A.K.TULSIYAN 1%2 / !# /DATE OF HEARING : 07.03.2012. 3' / !# /DATE OF PRONOUNCEMENT : 07.03.2012. '4 / ORDER ( (( ( . .. . ! ! ! !. .. . ) )) ), , , , '# PER SHRI C.D.RAO, AM THE ABOVE APPEAL FILED BY THE REVENUE IS AGAINST OR DER DATED 16.08.2011 OF LD. CIT(A)-CENTRAL-III, KOLKATA PERTAINING TO A.YR. 20 07-08. 2. THE SOLE ISSUE RAISED IN THIS APPEAL OF THE REV ENUE IS RELATING TO DISALLOWANCE U/S 14A OF THE IT ACT READ WITH RULE 8D OF IT RUL ES . 3. AFTER HEARING THE RIVAL SUBMISSIONS AND ON CARE FUL PERUSAL OF MATERIALS AVAILABLE ON RECORD KEEPING IN VIEW OF THE FACT THA T SINCE THE ASSESSMENT YEAR INVOLVED IN THIS APPEAL IS RELATING TO A.YR. 2007-08 AS PER THE DECISION OF THE HONBLE BOMBAY 2 HIGH COURT IN THE CASE OF GODREJ AND BOYCE MFG. PVT . LTD. (SUPRA) RELIED UPON BY THE LD. COUNSEL FOR THE ASSESSEE, RULE 8D IS NOT APPLIC ABLE IN THE ASSESSMENT YEAR UNDER CONSIDERATION. THIS TRIBUNAL HAS BEEN TAKING A CONS ISTENT VIEW OF SUSTAINING THE DISALLOWANCE U/S 14A AT 1% OF THE DIVIDEND INCOME. ACCORDINGLY WE DIRECT THE AO TO DISALLOW 1% OF THE DIVIDEND INCOME AS EXPENDITURE R ELEVANT TO EARNING OF DIVIDEND INCOME. WE ORDER ACCORDINGLY. 3. IN THE RESULT THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 07.03.2012. SD/- SD/- , ,, , MAHAVIR SINGH, JUDICIAL MEMBER . .. . ! ! ! !. .. . , , , , '# '# '# '# , C.D.RAO, ACCOUNTANT MEMBER. ( (( (!# !# !# !#) )) ) DATE: 07.03.2012. R.G.(P.S.) '4 / -5 6'5'7- COPY OF THE ORDER FORWARDED TO: 1. M/S.VARANASI COMMERCIAL LTD., P-46A, RADHABAZAR LAN E, KOLKATA-700001. 2 D.C.I.T., CENTRAL CIRCLE-XX, KOLKATA. 3. THE C.I.T. 4. CIT(A)-CENTRAL-III, KOLKATA. 5. THE CIT(DR), KOLKATA BENCHES, KOLKATA .5 -/ TRUE COPY, '4%1/ BY ORDER, DEPUTY /ASST. REGISTRAR , ITAT, KOLKATA BENCHES