Investmentor Securities Limited, Ahmedabad V. The ACIT, Circle-1(3), Ahmedabad

ITA 2141/AHD/2015

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 6244 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 5 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-01-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Appeal Filed On: 20-07-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: MARMIK SHAH
• Keywords: Earning of tax free income
• Section: 143(3); 14A; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH AHMEDABAD BEFORE, SHRI S. S. GODARA, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ITA NO. 2141/AHD/2015 (ASSESSMENT YEAR: 2012-13) INVESTMENTOR SECURITIES LTD., 38/B AJANTA COMMERCIAL CENTER, ASHRAM ROAD, AHMEDABAD - 380014 APPELLA NT VS. ACIT, CIRCLE- 1(3), PRATYAKSHKAR BHAVAN, PANJARAPOL, AHMEDABAD - 380014 RESPONDENT PAN: AAACI4334A /BY ASSESSEE : SHRI MARMIK SHAH, A.R. /BY REVENUE : SHRI PRASOON KABRA, SR. D.R /DATE OF HEARING : 04.01.2018 /DATE OF PRONOUNCEMENT : 08.01.2018 ORDER PER S. S. GODARA, JUDICIAL MEMBER THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2012-13, ARISES AGAINST THE CIT(A)-10, AHMEDABADS ORDER DATED 05.05.2015, IN C ASE NO. CIT(A)- 10/ACIT CIR1(3)/734/2014-15, UPHOLDING ASSESSING OF FICERS ACTION MAKING ITA NO. 2141/AHD/2015 (INVESTMENTOR SECURITIES LTD. VS. ACIT) A.Y. 2012-13 - 2 - SECTION 14A R.W. RULE 8D (2)(II) PROPORTIONATE INTE REST OF RS.2,41,462/- AND CLAUSE (III) ADMINISTRATIVE EXPENDITURE DISALLOWANC E @ .5% OF THE AVERAGE VALUE OF INVESTMENTS AMOUNTING TO RS.61,101/-; COMI NG TO RS.3,02,563/-, IN PROCEEDINGS U/S. 143(3) OF THE INCOME TAX ACT, 1961 , HEREINAFTER THE ACT. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. THERE IS NO DISPUTE THAT THE ASSESSEE HEREIN HAS EARNED EXEMPT INCOME AMOUNTING TO RS.83,613/- IN THE IMPUGNED ASSESSMENT YEAR. THIS MADE THE ASSESSING OFFICER TO INVOKE RULE 8D OF THE INCOME T AX RULES TO COMPUTE THE IMPUGNED DISALLOWANCE IN ASSESSMENT ORDER DATED 12. 02.2015. THE CIT(A) CONFIRMS THE SAME IN HIS LOWER APPELLATE ORDER MAIN LY ON THE GROUND THAT THE ASSESSEE HAD NOT BEEN ABLE TO DEMONSTRATE TO HAVE I NVESTED IN THE ABOVE TAX FREE INVESTMENTS FROM ITS INTEREST FREE FUNDS ONLY. THE SAME FACTUAL POSITION CONTINUES HEREIN AS WELL. LEARNED AUTHORIZED REPRE SENTATIVE STATES VERY FAIRLY THAT THE IMPUGNED DISALLOWANCE OUGHT NOT TO HAVE EXCEEDED THE ENTIRE EXEMPT INCOME AMOUNT (SUPRA) AS PER HONBLE DELHI H IGH COURTS JUDGMENT (2015) 372 ITR 694 (DEL) JOINT INVESTMENTS PVT. LTD . VS. CIT . MR. KABRA ON THE OTHER HAND STRONGLY SUPPORTS BOTH THE LOWER AUTHORITIES ACTION INVOKING THE IMPUGNED DISALLOWANCE. HE HOWEVER FAI LS TO REBUT THE ABOVE LEGAL PROPOSITION AS PER HONBLE DELHI HIGH COURTS RECENT DECISION. WE THEREFORE PARTLY ACCEPT ASSESSEES GRIEVANCE TO RES TRICT THE IMPUGNED DISALLOWANCE FROM RS.3,02,563/- TO THE EXTENT OF TH E ABOVE EXEMPT INCOME FIGURE OF RS.83,613/-. LEARNED COUNSEL REPRESENTIN G ASSESSEE SUBMITS THAT THE INSTANT CONCESSION OF CHALLENGING THE QUANTUM O F IMPUGNED DISALLOWANCE INSTEAD OF ITS CORRECTNESS ON MERITS BE NOT TAKEN A S PRECEDENT IN ANY PRECEDING OR SUCCEEDING ASSESSMENT YEAR. WE ACCEPT THE SAME TO MAKE IT ITA NO. 2141/AHD/2015 (INVESTMENTOR SECURITIES LTD. VS. ACIT) A.Y. 2012-13 - 3 - CLEAR THAT OUR INSTANT ORDER SHALL NOT BE TREATED A S A PRECEDENT AGAINST THE ASSESSEE. 3. THIS ASSESSEES APPEAL IS PARTLY ALLOWED. [PRONOUNCED IN THE OPEN COURT ON THIS THE 08 TH DAY OF JANUARY, 2018.] SD/- SD/- (AMARJIT SINGH) (S. S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEM BER AHMEDABAD: DATED 08/01/2018 TRUE COPY S.K.SINHA / COPY OF ORDER FORWARDED TO:- / REVENUE 2 / ASSESSEE ! / CONCERNED CIT 4 !- / CIT (A) ( )*+ ,--. . /0 / DR, ITAT, AHMEDABAD 1 +23 / GUARD FILE. BY ORDER / . // . /0