Amin Equipments Pvt.Ltd., Ahmedabad V. The Dy.CIT.,Circle-1, Ahmedabad

ITA 1929/AHD/2011

• Counselvise Citation: 192920514 RSA 2011
• Duration Of Justice: 3 year(s) 7 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-03-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 17-03-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 03-08-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M K SINGH SR DR
• Assessee Lawyers: S N DIVETIA
• Keywords: Opportunity of being heard
• Section: 14A

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT AND SHRI KUL BHARAT, JUDICIAL MEMBER ./ ././ ./ ITA NO. 1929/AHD/2011 / ASSESSMENT YEAR: 2007-08 AMIN EQUIPMENT PVT LTD, PLOT NO.222, MAKARBA, NR. SARKHEJ SANAND CROSS ROAD, S.G. HIGHWAY, AHMEDABAD PAN : AABCA 5995 J DCIT, CIRCLE-1, AHMEDABAD / // / (APPELLANT) / // / (RESPONDENT) ASSESSEE(S) BY : SHRI S. N. DIVETIA, AR REVENUE BY : SHRI M.K. SINGH, SR. DR. !' # $%&/ // / DATE OF HEARING : 17/03/2015 '( # $%& / // / DATE OF PRONOUNCEMENT: 19/03/2015 )* )* )* )*/ // / O R D E R PER G.D. AGRAWAL, VICE PRESIDENT: THIS IS AN APPEAL FILED BY THE ASSESSEE AND IS DIRE CTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME-TAX(APPEALS )-VI, AHMEDABAD DATED 16.05.2011 PERTAINING TO THE ASSESSMENT YEAR 2007-08. 2. THE ONLY GROUND RAISED IN THIS APPEAL BY THE ASS ESSEE IS AGAINST THE DISALLOWANCE U/S 14A AMOUNTING TO RS.3,70,063/-. 3. AT THE TIME OF HEARING BEFORE US, IT IS SUBMITTE D BY THE LD. COUNSEL THAT THE DISALLOWANCE HAS BEEN MADE BY THE ASSESSIN G OFFICER BY APPLYING THE PROVISIONS OF RULE 8D WHICH IS NOT APPLICABLE T O THE ASSESSMENT YEAR 2007-08. HE FURTHER SUBMITTED THAT NO BORROWED MON EY HAS BEEN UTILIZED FOR INVESTMENT IN THE SHARES/MUTUAL FUNDS. HE ALSO SUBMITTED THAT NO ITA NO.1929/AHD/2011 AMIN EQUIPMENT PVT LTD VS. DCIT FOR AY 2007-08 2 EXPENDITURE WAS INCURRED FOR EARNING OF DIVIDEND IN COME AND THEREFORE, DISALLOWANCE U/S 14A SHOULD NOT HAVE BEEN MADE. 4. THE LD. DR, ON THE OTHER HAND, FAIRLY ADMITTED T HAT RULE 8D WAS NOT APPLICABLE TO THE YEAR UNDER APPEAL, BECAUSE THE YE AR UNDER APPEAL IS ASSESSMENT YEAR 2007-08. HE, HOWEVER, STATED THAT W HETHER BORROWED MONEY WAS UTILIZED FOR INVESTMENT IN SHARES OR MUTU AL FUNDS WOULD REQUIRE VERIFICATION AT THE END OF THE ASSESSING OFFICER. H E ALSO STATED THAT SOME EXPENDITURE MUST HAVE BEEN INCURRED FOR EARNING OF DIVIDEND INCOME AND A PROPER ESTIMATE OF SUCH EXPENDITURE CAN BE MADE BY THE ASSESSING OFFICER ONLY AFTER EXAMINING ALL THE FACTS. HE, THEREFORE, REQUESTED FOR SETTING ASIDE OF THIS MATTER BACK TO THE FILE OF THE ASSESSING OF FICER. LD. COUNSEL FOR THE ASSESSEE, ON THE OTHER HAND, DID NOT HAVE ANY SERIO US OBJECTION FOR SETTING ASIDE THE MATTER BACK TO THE FILE OF THE ASSESSING OFFICER. 5. AFTER CONSIDERING THE ARGUMENTS OF BOTH THE SIDE S AND THE FACTS OF THE CASE, WE DEEM IT PROPER TO SET ASIDE THE DISALLOWAN CE U/S 14A AND RESTORE THE MATTER BACK TO THE FILE OF THE ASSESSING OFFICE R FOR ADJUDICATION IN ACCORDANCE WITH LAW, OF COURSE, WITHOUT APPLYING RU LE 8D. NEEDLESS TO MENTION THAT HE WILL ALLOW ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE WHILE GIVING EFFECT TO THIS ORDER. IN THE RESULT, ASSESSEES APPEAL IS DEEMED TO BE ALLOWED FOR STATISTICAL PURPOSES. 6. IN THE RESULT, ASSESSEES APPEAL IS DEEMED TO BE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 19 TH MARCH, 2015 AT AHMEDABAD. SD/- SD/- (KUL BHARAT) JUDICIAL MEMBER G.D. AGRAWAL VICE-PRESIDENT AHMEDABAD; DATED 19/03/2015 BIJU T., PS ITA NO.1929/AHD/2011 AMIN EQUIPMENT PVT LTD VS. DCIT FOR AY 2007-08 3 )* # $+ ,)+$ )* # $+ ,)+$ )* # $+ ,)+$ )* # $+ ,)+$/ COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. $ !- / CONCERNED CIT 4. !- ( ) / THE CIT(A) - VI , AHMEDABAD 5. +01 $ , , / DR, ITAT, AHMEDABAD 6. 13 4' / GUARD FILE . )*! )*! )*! )*! / BY ORDER, TRUE COPY 5 55 5/ // / 6 6 6 6 ( DY./ASSTT.REGISTRAR) , , , , / ITAT, AHMEDABAD