DCIT, CIR-6, KOLKATA, Kolkata V. M/s Birla Corporation Ltd., Kolkata

ITA 1819/KOL/2008

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 78323 (ITAT-KOLKATA)
• Duration Of Justice: 5 year(s) 7 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-04-2014
• Appeal Filed By: Department
• Bench Allotted: A
• Assessment Year: 2004-2005
• Appeal Filed On: 22-09-2008
• Court: TRIBUNAL
• Department Lawyers: RAVI JAIN
• Assessee Lawyers: SANJAY BHAUMIK
• Section: 143(3); 14A

Judgement Text

, A , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH: KOL KATA () BEFORE , /AND , ! ) [BEFORE SHRI MAHAVIR SINGH, JM & SHRI SHAMIM YAHYA, AM] ' / I.T.A NO.1817/KOL/2008 #$ %&/ ASSESSMENT YEAR: 2001-02 DEPUTY COMMISSIONER OF INCOME-TAX, VS. M/S. BIRLA CORPORATION LTD. CIRCLE-6, KOLKATA. (PAN: AABCB2075J) (() /APPELLANT ) (*+()/ RESPONDENT ) & C.O. NO. 124/KOL/2008 IN ' / I.T.A NO.1817/KOL/2008 #$ %&/ ASSESSMENT YEAR: 2001-02 M/S. BIRLA CORPORATION LTD. VS. DEPUTY COMMISSIO NER OF INCOME-TAX, CIRCLE-6, KOLKATA. (CROSS OBJECTOR) (RESPONDENT) & ' / I.T.A NO.1819/KOL/2008 #$ %&/ ASSESSMENT YEAR: 2004-05 DEPUTY COMMISSIONER OF INCOME-TAX, VS. M/S. BIRLA CORPORATION LTD. CIRCLE-6, KOLKATA. (PAN: AABCB2075J) (() /APPELLANT ) (*+()/ RESPONDENT ) & C.O. NO. 125/KOL/2008 IN ' / I.T.A NO.1819/KOL/2008 #$ %&/ ASSESSMENT YEAR: 2004-05 M/S. BIRLA CORPORATION LTD. VS. DEPUTY COMMISSIO NER OF INCOME-TAX, CIRCLE-6, KOLKATA. (CROSS OBJECTOR) (RESPONDENT) & ' / I.T.A NO.1820/KOL/2008 #$ %&/ ASSESSMENT YEAR: 2005-06 DEPUTY COMMISSIONER OF INCOME-TAX, VS. M/S. BIRLA CORPORATION LTD. CIRCLE-6, KOLKATA. (PAN: AABCB2075J) (() /APPELLANT ) (*+()/ RESPONDENT ) 2 ITA NOS. 1817,1819&1820/K/2008 & CO NOS. 124 TO 126/KOL/2008 M/S. BIRLA CORPORATION LTD.. AY 2001-02, 2004-05 & 2005-06 & C.O. NO. 126/KOL/2008 IN ' / I.T.A NO.1820/KOL/2008 #$ %&/ ASSESSMENT YEAR: 2005-06 M/S. BIRLA CORPORATION LTD. VS. DEPUTY COMMISSIO NER OF INCOME-TAX, CIRCLE-6, KOLKATA. (CROSS OBJECTOR) (RESPONDENT) DATE OF HEARING: 29.04.2014 DATE OF PRONOUNCEMENT: 29.04.2014 FOR THE REVENUE : SHRI RAVI JAIN, CIT, DR FOR THE ASSESSEE: SHRI SANJAY BHAUMIK, ADVOCATE / ORDER PER BENCH: APPEAL BY REVENUE BEING ITA NO. 1817/K/2008 IS ARIS ING OUT OF ORDER OF CIT(A)-VI, KOLKATA IN APPEAL NO. 193/CIT(A)-VI/07-08/C-6 DATED 25.06.2008 AND APPEAL BY REVENUE BEING ITA NOS. 1819 AND 1820/KOL/2008 ARE ARISING O UT OF COMMON ORDER OF CIT(A)-VI, KOLKATA IN APPEAL NOS. 191 & 292/CIT(A)-VI/07-08/C- 6 DATED 26.06.2008. ASSESSMENTS WERE FRAMED BY DCIT, CIRCLE-1, KOLKATA U/S. 143(3) OF TH E INCOME-TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) FOR ASSESSMENT YEARS 2001 -02 AND 2004-05 AND U/S. 143(3)/115JB OF THE ACT FOR AY 2005-06 VIDE HIS SEPARATE ORDERS DAT ED 26.03.2004, 28.12.2006 AND 19.12.2007 RESPECTIVELY. 2. THESE MATTERS ARE SET ASIDE TO TRIBUNAL BY HONB LE HIGH COURT VIDE THEIR ORDER PASSED IN ITA NO.282 OF 2009 DATED 07.02.2014. THE DIRECT ION GIVEN BY HONBLE HIGH COURT READS AS UNDER: THE PRAYER FOR REMAND OF THE MATTER TO THE ASSESSI NG OFFICER IS NOT ALLOWED BECAUSE THE ASSESSING OFFICER HAS ALREADY APPLIED HIS MIND AND THEREAFTER, THE CIT(A) HAS ALSO HEARD OUT AN APPEAL AGAINST THAT ORDER. WE ARE AS SUCH I NCLINED TO REMAND THE MATTER TO THE LEARNED TRIBUNAL FOR DECISION IN THE LIGHT OF THE V IEWS EXPRESSED BY US ON THE AFORESAID QUESTIONS OF LAW. 3. HONBLE HIGH COURT HAS SET ASIDE FOR CONSIDERATION OF DISALLOWANCE BY INVOKING THE PROVISIONS OF SECTION 14A OF THE ACT. HOWEVER, HON BLE HIGH COURT HAS HELD THE APPLICABILITY OF RULE 8D IS PROSPECTIVE. AT THE OUTSET, LD. COU NSEL FOR THE ASSESSEE FAIRLY STATED THAT THE TRIBUNAL IS TAKING A CONSISTENT VIEW AS REGARDS THE DISALLOWANCE U/S. 14A OF THE ACT THAT 1% IS 3 ITA NOS. 1817,1819&1820/K/2008 & CO NOS. 124 TO 126/KOL/2008 M/S. BIRLA CORPORATION LTD.. AY 2001-02, 2004-05 & 2005-06 TO BE DISALLOWED OF THE EXEMPTED INCOME. THE TRIBU NAL KOLKATA BENCH HAS ALSO CONFIRMED THE SAME IN MANY CASES, ONE OF THE SAME IS IN THE CASE OF SELECT PRODUCTS PVT. LTD. VS. ITO, ITA NO. 294/KOL/2012 FOR AY 2006-07 VIDE ORDER DATED 31 .03.2014. HENCE, WE DIECT THE AO TO RECOMPUTE THE DISALLOWANCE BY RESTRICTING AT 1% OF THE EXEMPTED INCOME FOR AY 2001-02 ON RS.31,22,483/-, FOR AY 2004-05 ON RS.5,25,72,011/- AND FOR AY 2005-06 ON RS.2,03,33,551/-. THE ISSUE IS EXACTLY SAME IN THE CROSS OBJECTIONS O F ASSESSEE ALSO. WE DIRECT THE AO ACCORDINGLY. 4. IN THE RESULT, ALL THE APPEAL OF REVENUE AND CRO SS OBJECTIONS OF ASSESSEE ARE DISMISSED. 5. ORDER IS PRONOUNCED IN THE OPEN COURT. SD/- SD/- , ! , (SHAMIM YAHYA ) (MAHAVIR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 29 TH APRIL, 2014 ./ #01 2 JD.(SR.P.S.) 3 *4 5 4%6- COPY OF THE ORDER FORWARDED TO: 1 . () / APPELLANT DCIT, CIRCLE-6, KOLKATA 2 *+() / RESPONDENT M/S. BIRLA CORPORATION LTD., 9/1, R. N. MUKHERJEE ROAD, KOLKATA-700 001 3 . # ( )/ THE CIT(A), KOLKATA 4. 5. # / CIT KOLKATA 4:; *# / DR, KOLKATA BENCHES, KOLKATA +4 */ TRUE COPY, #