FORTUNE EQUITY BROKERS (I) LTD, MUMBAI V. DCIT RG 4(1), MUMBAI

ITA 157/MUM/2013

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 2218 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 11 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-12-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 20-01-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 04-01-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PAWAN KU MAR BEERLA
• Keywords: Opportunity of being heard
• Section: 14A

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL F BENCH, MUMBAI BEFORE SHRI N.K . BILLAIYA, ACCOUNTANT MEMBER AND SHRI PAWAN SINGH, JUDICIAL MEMBER / I .T.A. NO . 157/MUM/2013 ( / ASSESSMENT YEAR : 2009 - 10 M/S. INTIME EQUITIES LTD., (FORMERLY KNOWN AS M/S. FORTUNE EQUITY BROKERS (I) LTD., 2002, NAMAN MIDTOWN, A WING, SENAPATI BAPAT MARG, ELEPHINSTONE ROAD (W), MUMBAI - 400 013 / VS. THE DCIT, RANGE - 4(1), MUMBAI ./ ./ PAN/GIR NO. : AAACG 2063L ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY: SHRI ANUJ KISNADWALA / RESPONDENT BY: SHRI PAWAN KUMAR BEERLA / DATE OF HEARING : 0 8 . 1 2 .2015 / DATE OF PRONOUNCEMENT : 0 8 .12 .2015 / O R D E R PER N.K. BILLAIYA, AM: WITH T HIS APPEAL THE ASSESSEE HAS CHALLENGED THE CORRECTNESS OF THE ORDER OF THE LD. CIT(A) - 8 , MUMBAI D ATED 2 .1 1 .2012 PERTAINING TO ASSESSMENT YEAR 200 9 - 1 0. 2. THE GRIEVANCE OF THE ASSESSEE RELATES TO THE DISALLOWANCE OF RS. 45,10,958/ - U/S. 14A OF THE ACT. ITA. NO. 157/M/2013 2 3. IN CONTINUATION TO THIS GRIEVANCE, THE ASSESSEE HAS MOVED AN APPLICATION FOR THE ADMISSION OF ADDITIONAL GROUND CLAIMING THAT THE AO ERRED AND THE LD. CIT(A) FURTHER ERRED IN NOT ACCEPTING THE REVISED COMPUTATION OF INCOME FILED BY THE ASSESSEE. THE ASSE SSEE IS IN THE BUSINESS OF SHARE AND STOCK BROKING. THE RETURN WAS SELECTED FOR SCRUTINY ASSESSMENT . 4. DURING THE COURSE OF THE SCRUTINY ASSESSMENT PROCEEDINGS, THE ASSESSEE FILED A REVISED COMPUTATION OF INCOME DETERMINING TOTAL INCOME AT RS. 16,21,7 80/ - . IN THIS REVISED COMPUTATION OF INCOME, THE ASSESSEE HAS REVISED THE DISALLOWANCE U/S. 14A R.W. RULE 8D TO RS. 1,70,054/ - AS AGAINST RS. 45,10,958/ - DISALLOWED IN THE ORIGINAL COMPUTATION OF INCOME. THIS CLAIM OF THE ASSESSEE WAS DENIED BY AO WHO D REW SUPPORT FROM THE DECISION OF THE HONBLE SUPREME COURT IN THE CASE OF GOETZE (INDIA) LTD VS CIT 284 ITR 323 (SC). 5. THE ASSESSEE CARRIED THE MATTER BEFORE THE LD. CIT(A) BUT WITHOUT ANY SUCCESS. 6. BEFORE US, THE LD. COUNSEL FOR THE ASSESSEE VEHEME NTLY SUBMITTED THAT THE DECISION OF THE HONBLE SUPREME COURT DOES NOT FETTER THE POWERS OF THE APPELLATE AUTHORITY TO CONSIDER A VALID REVISED COMPUTATION OF INCOME. 7. WE HAVE GIVEN A THOUGHTFUL CONSIDERATION TO THE CONTENTION OF THE LD. COUNSEL QUA TH E ADDITIONAL GROUND QUA THE DECISION OF THE HONBLE SUPREME COURT (SUPRA). IT IS INDEED TRUE THAT THE DECISION OF THE HONBLE SUPREME COURT DOES NOT FETTER THE POWERS OF THE APPELLATE AUTHORITIES. OUR VIEW IS ALSO FORTIFIED BY THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS PRUTHVI BROKERS AND SHAREHOLDERS PVT. LTD., 349 ITR 336. RESPECTFULLY ITA. NO. 157/M/2013 3 FOLLOWING THE RATIO LAID DOWN BY THE HONBLE JURISDICTIONAL HIGH COURT (SUPRA), WE RESTORE THIS ISSUE TO THE FILE OF THE AO. THE AO IS DIRECTED TO DECIDE THE ISSUE AFRESH IN THE LIGHT OF THE REVISED COMPUTATION OF INCOME FILED BY THE ASSESSEE. NEEDLESS TO MENTION, THE AO SHALL GIVE REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESS EE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON 8 TH DECEMBER , 2015 SD/ - SD/ - ( PAWAN SINGH ) (N.K. BILLAIYA) /JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; DATED : 8 TH DECEMBER , 2015 . . ./ RJ , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . / BY ORDER, //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI