ACIT CIR 21(1), MUMBAI V. NINA SUNIL DALAL, MUMBAI

ITA 169/MUM/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 3982 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 3 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-04-2016
• Appeal Filed By: Department
• Bench Allotted: B
• Next Hearing Date: 01-10-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 04-01-2013
• Court: TRIBUNAL
• Department Lawyers: U B JAKKE
• Assessee Lawyers: B V JHAVERI
• Keywords: Transactions in derivatives

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B , BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM & SHRI PAWAN SINGH , JM ./ ITA NO. 169 / MUM/20 1 3 ( / ASSESSMENT YEAR : 20 10 - 11 ) ACIT CIRCLE - 21(1), MUMBAI VS. SMT. NINA SUNIL DALAL, C/O D.S./ACHARYA & CO., CAS. 513 ARUN CHAMBERS, 5 TH FLOOR, TARDEO ROAD, MUMBAI - 400034 ./ ./ PAN/GIR NO. : A A BPD 0490 Q ( / APPELLANT ) .. ( / RESPONDENT ) AND ./ ITA NO.1846/MUM/2014 ( / ASSESSMENT YEAR : 2010 - 11 ) SMT. NINA SUNIL DALAL, C/O D.S./ACHARYA & CO., CAS. 513 ARUN CHAMBERS, 5 TH FLOOR, TARDEO ROAD, MUMBAI - 400034 VS. ACIT CIRCLE - 21(1), MUMBAI ./ ./ PAN/GIR NO. : A ABPD 0490 Q ( / APPELLANT ) .. ( / RESPONDENT ) /REVENUE BY : SHRI U.B.JAKKE /ASSESSEE BY : SHRI B.V.JHAVERI / DATE OF HEARING : 05 / 04 /201 6 / DATE OF PRONOUNCEMENT 13 / 04 /201 6 / O R D E R PER R.C.SHARMA (A.M) : ITA NO.169/MUM/2013(AY:2009 - 2010)( REVENUE S APPEAL) : THIS IS AN APPEAL FILED B Y THE REVENUE AGAINST THE ORDER OF CIT(A) - MUMBAI, FOR THE ASSESSMENT YEAR 2009 - 2010 , WHEREIN REVENUE IS ITA NO. 169/13 & 1846/14 2 AGGRIEVED FOR DELE TING DISALLOWANCE MADE U/S.14A BY EXCLUDING STOCK - IN - TRADE FROM THE VALUE OF SHARES HELD. 2. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PERUSED. FACTS IN BRIEF ARE THAT THE ASSESSEE IS ENGAGED IN BUSINESS OF TRADING IN SHARES AND F&O. WHILE COMPUTING DI SALLOWANCE U/S.14A WITH RULE 8D THE AO TOOK THE AVERAGE VALUE OF INVESTMENT WITHOUT EXCLUDING SHARES HELD AS STOCK - IN - TRADE. BY THE IMPUGNED ORDER CIT(A) DELETED THE ADDITION SO MADE AFTER GIVING DETAILED OBSERVATION AT PARA 3.3 OF HIS APPELLATE ORDER. 3. WE HAVE CONSIDERED RIVAL CONTENTIONS AND FOUND THAT ISSUE UNDER CONSIDERATION IS COVERED BY THE ORDER OF HONBLE BOMBAY HIGH COURT IN THE CASE OF M/S INDIA ADVANTAGE SECURITIES LTD., ITA NO.1131 OF 2013, DATED 13 - 4 - 2015, WHEREIN IT WAS HELD THAT SHARES HE LD AS STOCK - IN - TRADE IS TO BE EXCLUDED WHILE COMPUTING DISALLOWANCE U/S.14A READ WITH RULE 8D. SIMILAR VIEW HAS BEEN TAKEN BY THE COORDINATE BENCH IN THE CASE OF VIVEK MEHROTRA, ITA NO.915/MUM/2013, DATED 16 - 3 - 2016, M/S JMP SECURITIES PVT. LTD., ITA NO.56 88/MUM/2013, DATED 19 - 2 - 2016. RESPECTFULLY FOLLOWING THE ORDER OF THE JURISDICTIONAL HIGH COURT, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF CIT(A) FOR EXCLUDING SHARES HELD AS STOCK - IN - TRADE FOR COMPUTING DISALLOWANCE UNDER RULE 8D. ITA NO.1846/MUM/2014( AY:2010 - 11)(ASSESSEES APPEAL) : 4. IN THE APPEAL SO FILED BY THE ASSESSEE FOR THE ASSESSMENT YEAR 2010 - 2011 THE ASSESSEE IS AGGRIEVED FOR THE DISALLOWANCE COMPUTING U/S.14A READ WITH RULE 8D WITHOUT EXCLUDING SHARES HELD AS STOCK - IN - TRADE. AS DISCUSSED HER EINABOVE IN PARA 3 , FOLLOWING THE SAME ITA NO. 169/13 & 1846/14 3 REASONING, WE DO NOT FIND ANY MERIT IN THE ACTION OF LOWER AUTHORITIES FOR NOT EXCLUDING THE SHARES HELD AS STOCK IN TRADE IN VIEW OF THE DECISION OF THE JURISDICTIONAL HIGH COURT IN THE CASE OF M/S INDIA ADVANTAG E SECURITIES LTD. (SUPRA) . RESPECTFULLY FOLLOWING THE SAME, WE DIRECT THE AO TO EXCLUDE THE SHARES HELD AS STOCK - IN - TRADE WHILE COMPUTING DISALLOWANCE UNDER RULE 8D. WE DIRECT ACCORDINGLY. 5 . IN THE RESULT, APPEAL OF REVENUE IS DISMISSED, WHEREAS APPEAL O F ASSESSEE IS ALLOWED , IN TERMS INDICATED HEREINABOVE . O RDER PRONOUNCED IN THE OPEN COURT ON THIS 13 / 04 / 201 6 . SD/ - ( PAWAN SINGH ) SD/ - ( R.C.SHARMA ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; DATED 13 / 04 /201 6 . . /PKM , . / PS / COPY OF THE ORDER FORWARDED TO : / BY ORDER, / ( ASSTT. RE GISTRAR) , / ITAT, MUMBAI 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A), MUMBAI. 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE. //TRUE COPY//