Hindusthan Feeds Manufacturing Company, Satara V. Assistant Commissioner of Income-tax, Satara Circle , Satara

ITA 2085/PUN/2017

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 8683 (ITAT-PUNE)
• Duration Of Justice: 4 year(s) 9 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-06-2022
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 03-09-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Earning of tax free income; Proportionate interest; Rule 8D
• Section: 143(3); 14A

Judgement Text

आयकर अपीऱीय अधिकरण “ए” न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, PUNE BEFORE SHRI S.S.GODARA, JM AND SHRI DR. DIPAK P. RIPOTE, AM आयकर अपीऱ सं. / ITA No.2085/PUN/2017 ननधधारण वषा / Assessment Year : 2014-15 Hindustan Feeds Manufacturing Company, L-4, Additional MIDC, Satara – 415 004. PAN : AABFH6485P .......अपऩलधथी / Appellant बनधम / V/s. ACIT, Satara Circle, Satara ......प्रत्यथी / Respondent Assessee by : Shri D.G. Kurundwadkar Revenue by : Shri S. P. Walimbe सपनवधई की तधरऩख / Date of Hearing : 12.05.2022 घोषणध की तधरऩख / Date of Pronouncement : 10.06.2022 आदेश / ORDER PER S. S. GODARA, JM : 1. This assessee’s appeal for A.Y. 2014-15 is directed against the CIT(A)-4, Pune’s order dated 25/04/2017 passed in case No. PN/CIT(A)-4/264/2016- 17/291 involving proceeding u/s. 143(3) of the Income Tax Act, 1961 ; in short "the Act”. Heard both the parties. Case file perused. 2. The assessee’s sole substantive ground raised in instant appeal challenges correctness of both the lower authorities’ action making sec. 14A r. w. Rule 8D (2) (i to iii) direct, proportionate interest administrative expenses disallowance(s) of Rs.46,80,655/-, Rs.19,95,692/- and Rs.1,11,516/-; 2 ITA No.2085/PUN/2017 Hindustan Feeds Manufacturing Company, respectively totaling to Rs. 67,87,864/- made in the course of assessment dated 31.8.2016 are upheld to the extent of exempt income of Rs.10,04,932/- only in the CIT(A)’s order under challenge. 3. We have given our thoughtful consideration to rival pleadings and perused the case file. We first of all note this tribunal’s co-ordinate bench order dated 12.9.2019 in Revenue’s appeal ITA No.507/PUN/2017 for assessment year 2012-13 has already decided the issue in assessee’s favour that interest paid on partner’s capital account is not to be considered for the purpose of sec. 14A disallowance. This is coupled with the fact that the learned lower authorities have not computed the impugned disallowance of administrative expenditure after taking into consideration only the investments yielding exempt income or the actual amount; as the case may be as per ACIT V/s Vineet Investment Pvt. Ltd. (2017) 165 ITD 27 (Del.)(SB). Faced with this situation, we direct the learned Assessing Officer to frame his afresh computation as per law with a rider that in case impugned disallowance exceeds the one already in issue Rs.10,04,932/-, the same shall be restricted to the extent of exempt income only in light of Joint Investments Ltd V/s ACIT (2015) 374 ITR 94. Ordered accordingly. 4. This assessee’s appeal is partly allowed in above terms. Order pronounced in the Open Court on this 10 th day of June, 2022. Sd/- Sd/- (DR.DIPAK P.RIPOTE) (S.S. GODARA) लेखध सदस्य/ ACCOUNTANT MEMBER न्यधनयक सदस्य/JUDICIAL MEMBER पपणे / Pune; ददनधांक / Dated : 10 th June, 2022. 3 ITA No.2085/PUN/2017 Hindustan Feeds Manufacturing Company, Ashwini आदेश की प्रनतनलनप अग्रेनषत / Copy of the Order forwarded to : 1. अपऩलधथी / The Appellant. 2. प्रत्यथी / The Respondent. 3. The CIT(A)-4, Pune. 4. The Pr.CIT-3, Pune. 5. नवभधगऩय प्रनतनननध, आयकर अपऩलऩय अनधकरण, “ए” बेंच, पपणे / DR, ITAT, “A” Bench, Pune. 6. गधर्ा फ़धइल / Guard File. आदेशधनपसधर / BY ORDER, // True Copy // Senior Private Secretary आयकर अपऩलऩय अनधकरण, पपणे / ITAT, Pune. 4 ITA No.2085/PUN/2017 Hindustan Feeds Manufacturing Company, S.No. Details Date Initials 1 Draft dictated on 12.05.2022 2 Draft placed before author 01.06.2022 3 Draft proposed & placed before the Second Member 4 Draft discussed/approved by Second Member 5 Approved Draft comes to the Sr. PS/PS 6 Kept for pronouncement on 7 Date of uploading of Order 8 File sent to Bench Clerk 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R. 11 Date of Dispatch of order