STATIONERY POINT INDIA LTD, MUMBAI V. ACIT 9(3), MUMBAI

ITA 1550/MUM/2011

• Counselvise Citation: 155019914 RSA 2011
• Duration Of Justice: 3 year(s) 11 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-02-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: H
• Next Hearing Date: 08-01-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 23-02-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: JEETENDRA KUMAR
• Assessee Lawyers: HARESH SHAH
• Section: 143(3); 14A

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL H , BENCH MUMBAI , BEFORE : SHRI R.C.SHARMA, AM & SHRI VIVEK VARMA , JM ITA NO. 1550 / MUM/20 1 1 ( ASSESSMENT YEAR : 20 07 - 08 ) M/S STATIONERY POINT INDIA LTD., A - 7/60, SARAF CHOUDHARI NAGAR, THAKUR COMPLEX, KANDIVLI (E), MUMBAI - 400 101 VS. ACIT - 9(3), MUMBAI PAN/GIR NO. : A A FCS 313 7 G ( APPELLANT ) .. ( RESPONDENT ) /ASSESSEE BY : SHRI HARESH SHAH /REVENUE BY : SHRI JEETENDRA KUMAR DATE OF HEARING : 08 / 01 /201 5 DATE OF PRONOUNC EMENT : 20 /0 2 /2015 O R D E R PER R.C.SHARMA ( A .M.) : TH IS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) DATED 30 - 12 - 2010 , FOR THE ASSESSMENT YEAR 20 07 - 08 , IN THE MATTER OF ORDER PASSED U/S. 143(3) OF THE I.T.ACT , WHEREIN FOLLOWING GROUNDS HAVE BEEN TAKEN BY THE ASSESSEE : - (I) DISALLOWANCE RS. 5,65,690/ - VIS. 40(A)(IA) (1) THE LEARNED CIT(A) - 20, MUMBAI, [REFERRED AS 'CIT(A)] ERRED IN CONFIRMING DISALLOWANCE OF RS. 5,65,690 / - U/S. 40(A)(IA) HOLDING IT AS NOT PRESSED IN THE COURSE OF APPEAL. (2) THE LEARNED CIT(A) FAILED TO APPRECIATE THAT THAT THE ISSUE WAS CATEGORICALLY ADDRESSED IN THE WRITTEN SUBMISSIONS DATED - 9TH SEPT., 2010 BY POINTING OUT TO THE RELEVANT DOCUMENTS AND DETAILS GIVEN AT PAGES 290 TO 295 AND 326 TO 328 OF THE PAPER BOOK FILED IN THE APPELLATE PROCEEDINGS. ITA NO. 1550 /20 1 1 2 (3) ON THE FACTS & CIRCUMSTANCES YOUR APPELLANT PRAYS THAT THE ALLEGED ADDITION MAY BE DELETED. (II) DISALLOWANCE U/S. 14A R.W.R 8D RS.68,807/ - (1) THE LEARNED CIT(A) ERRED IN CONFIRMING THE DISALLOWANCE OF RS. 68,807/ - UNDER THE PROVISIONS OF SECTION 14A RWR 8D HOLDING IT AS NOT PRESSED IN THE COURSE OF APPEAL. (2) THE LEARNED CIT(A) FAILED TO APPRECIATE THAT THAT THE ISSUE WAS CATEGORICALLY ADDRESSED IN THE WRITTEN SUBMISS IONS DATED - 9TH SEPT., 2010 BY POINTING OUT TO THE RELEVANT DOCUMENTS AND DETAILS GIVEN AT PAGES 345 TO 354 OF THE PAPER BOOK FILED IN THE APPELLATE PROCEEDINGS. (3) ON THE FACTS AND CIRCUMSTANCES ALLEGED ADDITION U/S. 14A MAY BE DELETED. 2 . RIVAL C ONTENTIONS HAVE BEEN HEARD AND RECORD PERUSED. WE HAD ALSO GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW AND FOUND THAT ASSESSEES CONTENTION WITH REGARD TO RS. 5,65,690/ - U/S.40(A)(IA) WAS EXPLAINED THROUGH DOCUMENTS PLACED AT PAGE 290 TO 295 AND 326 T O 328 OF THE PAPER BOOK SUBMITTED BEFORE THE CIT(A). WE FOUND THAT THE CIT(A) HAS DECLINED ASSESSEES CLAIM MERELY BY MENTIONING THAT THE AR DID NOT PRESS THEM IN THE COURSE OF APPELLATE PROCEEDINGS. WE HAVE GONE THROUGH THE DOCUMENTS PLACED ON RECORD AND FOUND THAT THE MATTER DESERVES TO BE RESTORED TO THE FILE OF CIT(A) FOR DECIDING ON MERIT AFTER CONSIDERING THE DOCUMENTS MENTIONED HEREINABOVE, WHICH WAS PLACED BEFORE HIM DURING THE COURSE APPELLATE PROCEEDINGS. 3 . WITH REGARD TO DISALLOWANCE U/S.14A RE AD WITH RULE 8D AMOUNTING TO RS.68,807/ - , THE LD. AR DREW OUR ATTENTION TO THE BALANCE SHEET WHEREIN ASSESSEE WAS HAVING SHARE CAPITAL AND RESERVE AS WELL AS INTEREST FREE FUNDS MORE THAN THE AMOUNT ADVANCED FREE OF INTEREST. LD. AR RELIED ON THE DECISION OF HONBLE BOMBAY HIGH COURT IN THE CASE OF RELIANCE ITA NO. 1550 /20 1 1 3 UTILITIES, 313 ITR 240 , WHEREIN IT WAS HELD THAT IF THE ASSESSEE HAD SUFFICIENT INTEREST FREE FUNDS, THEN PRESUMPTION CAN BE MADE THAT INVESTMENT IN SHARES/SECURITIES WERE MADE OUT OF SUCH INTEREST FREE FUNDS. WE FOUND THAT THE CIT(A) HAS JUST DECLINED ASSESSEES CLAIM BY STATING THAT THIS GROUND WAS NOT PRESSED. IN THE INTEREST OF JUSTICE, WE RESTORE THIS GROUND BACK TO THE FILE OF CIT(A) FOR DECIDING AFRESH AFTER VERIFYING THE AVAILABILITY OF INTEREST F REE FUNDS WITH THE ASSESSEE TO COVER UP SUCH INVESTMENT. 4 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED IN PART FOR STATISTICAL PURPOSES . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 20 TH FEB. 201 5 . SD/ - SD/ - ( ) ( VIVEK VARMA ) ( ) ( R.C.SHARMA ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; DATED 20 / 0 2 /201 5 /PKM , PS COPY OF THE ORDER FORWARDED TO : / BY ORDER, ( ASSTT. REGISTRAR) / ITAT, MUMBAI 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / THE CIT(A), MUMBAI. 4. / CIT 5. / DR, ITAT, MUMBAI 6 . GUARD FILE. //TRUE COPY//