Shriram Chits Tamilnadu Pvt. Limited, CHENNAI V. ACIT, CHENNAI

ITA 1688/CHNY/2012

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 68850 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 2 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2013
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 27-11-2013
• Assessment Year: 2009-2010
• Appeal Filed On: 03-09-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ANIRUDH RAI IRS
• Assessee Lawyers: R SIVARAMAN
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI BEFORE DR. O.K.NARAYANAN, VICE-PRESIDENTAND SHRI VIKAS AWASTHY, JUDICIAL MEMBER ITA NO. 1688(MDS)/2012 ASSESSMENT YEAR : 2009-10 M/S SHRIRAM CHITS TAMILNADU PVT. LIMITED, 149, GREAMS ROAD, CHENNAI - 600 006. PAN : AABCS 0167 N V. THE ASSISTANT COMMISSIONER OF INCOME TAX, COMPANY CIRCLE VI(2), CHENNAI - 600 034. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI R. SIVA RAMAN, ADVOCATE RESPONDENT BY : SHRI ANIRUDHRAI , IRS, CIT DATE OF HEARING : 27 TH NOVEMBER, 2013 DATE OF PRONOUNCEMENT : 27 TH NOVEMBER, 2013 O R D E R PER DR.O.K.NARAYANAN, VICE-PRESIDENT THIS APPEAL IS FILED BY THE ASSESSEE. THE RELEVA NT ASSESSMENT YEAR IS 2009-10. THE APPEAL IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) V AT CHENNAI, DATED 21.6.2012 AND ARISES OUT OF THE ASSESSMENT CO MPLETED UNDER SECTION 143(3) OF THE INCOME-TAX ACT, 1961. 2 I.T.A. NO. 1688/MDS/12 2. THE FIRST ISSUE RAISED BY THE ASSESSEE IS THAT T HE FOREMANS DIVIDEND IS NOT TAXABLE ON THE GROUND OF MUTUALITY. THIS ISSUE WAS CONSIDERED BY THE ITAT, CHENNAI BENCH, IN ASSESSEE' S OWN CASE, FOR ASSESSMENT YEAR 2008-09 IN I.T.A. NO. 1181/MDS/ 2011, THROUGH ITS ORDER DATED 30 TH MARCH, 2012. FOLLOWING ITS EARLIER ORDERS, THE TRIBUNAL HAS HELD THAT THE FOREMANS DIVIDEND IS LI ABLE FOR TAXATION. IN THE LIGHT OF CONSISTENT VIEW TAKEN BY VARIOUS JU DGMENTS OF THE TRIBUNAL, WE HOLD THAT THE LOWER AUTHORITIES ARE JU STIFIED IN TREATING THE FOREMANS DIVIDEND AS INCOME TAXABLE IN THE HAN DS OF THE ASSESSEE. THIS ISSUE IS DECIDED AGAINST THE ASSESS EE. 3. THE SECOND ISSUE RAISED BY THE ASSESSEE IS THAT THE COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN CONFI RMING THE DISALLOWANCE MADE BY THE ASSESSING OFFICER TO THE E XTENT OF ` 7,47,266/- BY APPLYING RULE 8D OF INCOME-TAX RULES, 1962 R/W SECTION 14A. THIS ISSUE WAS ALSO CONSIDERED BY THE TRIBUNAL IN THE ABOVE MENTIONED ORDER AND HELD AGAINST THE ASSESSEE . ACCORDINGLY, THIS ISSUE IS ALSO DECIDED AGAINST THE ASSESSEE. 4. THUS, THE GROUNDS RAISED BY THE ASSESSEE IN THE PRESENT APPEAL ARE REJECTED IN THE LIGHT OF THE ORDERS PASS ED BY THE TRIBUNAL IN ASSESSEE'S OWN CASE, FOR EARLIER ASSESSMENT YEAR S. 3 I.T.A. NO. 1688/MDS/12 5. IN RESULT, THIS APPEAL FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON WEDNESDAY, THE 27 TH OF NOVEMBER, 2013 AT CHENNAI. SD/- SD/- (VIKAS AWASTHY) (DR. O.K. NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI, DATED, THE 27 TH NOVEMBER, 2013. KRI. COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT, CHENN AI-III, CHENNAI 4. CIT(A)-V, CHENNAI-34 5. DR 6. GF.