M/s. MEW Electricals Ltd.(Formerly Mahesh Enamelled Wires Pvt.Ltd.), Baroda V. Deputy CIT Circle 2(1)(2), Baroda

ITA 2151/AHD/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 2902 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 5 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-03-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 28-09-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Earning of tax free income; Rule 8D; Set aside
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD BEFORE SHRI AMARJIT SINGH, ACCOUNTANT MEMBER & MS. MADHUMITA ROY, JUDICIAL MEMBER ITA NO.2151/AHD/2017 (ASSESSMENT YEAR : 2013-14) M/S. MEW ELECTRONICS LTD. (FORMERLY MAHESH ENAMELLED WIRES PVT. LTD.), 305/A, WINDSOR PLAZA, R.C. DUTT ROAD, BARODA-390 005. VS. DCIT, CIRCLE 2(1)(2), BARODA. [PAN NO. AABCM 4242 L] ( APPELLANT ) .. ( RESPONDENT ) APPELLANT BY : SHRI SUNIL TALATI, A.R. RESPONDENT BY : SHRI MUDIT NAGPAL, SR. D.R. DATE OF HEARING 08/02/2019 DATE OF PRONOUNCEMENT 04/03/2019 O R D E R PER MS. MADHUMITA ROY - JM: THE INSTANT APPEAL FILED BY THE ASSESSEE IS AGAINST THE ORDER DATED 20.06.2017 PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS)- 2, VADODARA ARISING OUT OF THE ASSESSMENT ORDER DATED 29.01.2016 PASSED BY THE DCI T, CIRCLE 2(1)(2), BARODA UNDER SECTION (U/S) 143 (3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED AS TO THE ACT) FOR THE ASSESSMENT YEAR 2013-14. 2. THE ASSESSEE IN THE INSTANT APPEAL HAS CHALLENGE D THE DISALLOWANCE OF RS.9,71,925/- MADE BY THE ASSESSING OFFICER BY INVO KING SECTION 14A OF THE ACT. 3. AT THE TIME OF HEARING OF THE MATTER, THE LEARNE D REPRESENTATIVE OF THE ASSESSEE SUBMITTED THAT THE ASSESSING OFFICER MADE A TOTAL D ISALLOWANCE OF RS.9,71,925/- UNDER RULE 8D R.W.S. 14A OF THE ACT WHICH WAS IN TURN CON FIRMED BY THE LEANED CIT(A) ON THE - 2 - ITA NO.2151/A/17 M/S. MEW ELECTRICAL LTD. VS. DCIT ASST.YEAR 2013-14 BASIS OF THE DISALLOWANCE MADE IN A.Y. 2012-13 BY T HE PREDECESSOR ON 19.11.2015 IN APPEAL NO. CAB(A)-2/363/14-15. IT WAS FURTHER BROUG HT TO NOTICE BY THE LEARNED AR THAT SUCH ORDER OF CONFIRMATION OF DISALLOWANCE FOR A.Y. 2012-13 WAS SET ASIDE BY THE LEARNED TRIBUNAL AND RESTORED TO THE FILE OF THE LE ARNED CIT(A) IN ITA NO.329/AHD/2016 FOR A.Y. 2012-13. NEEDLESS TO MENTI ON, SAME RELIEF HAS BEEN SOUGHT FOR ON BEHALF OF THE ASSESSEE BEFORE US. HOWEVER, T HE LEARNED DR RELIED UPON THE ORDER PASSED BY THE AUTHORITIES BELOW. 4. WE HAVE HEARD THE REPRESENTATIVE OF THE RESPECTI VE PARTIES, WE HAVE ALSO PERUSED THE RELEVANT MATERIALS AVAILABLE ON RECORD. THE ORD ER PASSED BY THE CO-ORDINATE BENCH IN ASSESSEES OWN APPEAL FOR A.Y. 2012-13 HAS ALSO BEE N CAREFULLY CONSIDERED BY US WHEREBY AND WHEREUNDER THE LEARNED CIT(A) WAS DIREC TED TO DENOVO ADJUDICATION OF THE MATTER; THE RELEVANT PORTION OF THE SAID JUDGMENT I S REPRODUCED HEREIN BELOW: 5. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISSI ONS. WE FIND THAT IDENTICAL ISSUE CAME UP BEFORE THE CO-ORDINATE BENCH IN ASSES SMENT YEAR 2011-12 IN ASSESSEE OWN CASE WHERE IN THE SIMILAR CIRCUMSTANCE S. THE ISSUE WAS SET ASIDE TO THE FILE OF THE LD. CIT(A) FOR DE NOVA ADJ UDICATION. 6. THE RELEVANT OPERATIVE PARA OF THE ORDER OF THE CO-ORDINATE BENCH RELEVANT TO ASSESSMENT YEAR 2011-12 IS REPRODUCED HEREUNDER: - WE HAVE HEARD BOTH THE SIDES AND PERUSED THE MATER IAL ON RECORD. WE OBSERVED THAT ID. CIT(A) HAS SUSTAINED THE DISALLOW ANCE MADE BY THE ASSESSING OFFICER U/S. 14A R.W. RULE 8D IN RESPECT OF EXPENDITURE INCURRED FOR EARNING EXEMPT INCOME BY REFERRING TO THE DECIS ION OF LD. C1T(A) ON THE IDENTICAL ISSUE IN THE CASE OF ASSESSEE FOR ASSESSM ENT YEAR 2008-09. WE HAVE CONSIDERED THE SUBMISSION OF THE ID. COUNSEL T HAT BECAUSE OF SMALLNESS OF THE AMOUNT OF DISALLOWANCE INVOLVED THE ASSESSEE HAS NOT CONTESTED THE DECISION OF THE LD. CIT(A) FOR ASSESSMENT YEAR 2008 -09. IN VIEW OF THE AFORESAID FACTS AND CIRCUMSTANCES WE OBSERVE THAT I N THE INTEREST OF JUSTICE, IT WILL BE APPROPRIATE TO RESTORE THIS CASE TO THE FILE OF LD. CIT(A) TO DECIDE IT ON MERIT WITHOUT REFERRING TO THE DECISION OF TH E LD. CIT(A) FOR THE ASSESSMENT YEAR 2008-09. ACCORDINGLY, THE ISSUE IS SET ASIDE TO THE ID. CIT(A) TO DECIDE AFRESH AFTER AFFORDING ADEQUATE OP PORTUNITIES TO THE ASSESSEE. - 3 - ITA NO.2151/A/17 M/S. MEW ELECTRICAL LTD. VS. DCIT ASST.YEAR 2013-14 7. IN CONSONANCE WITH THE VIEW TAKEN IN ASSESSMENT YEAR 2011-12 THE CAPTAINED ISSUE IN ASSESSMENT YEAR 2012-13 IS ALSO SET ASIDE TO THE FILE OF THE LD. CIT(A) WITH IDENTICAL DIRECTIONS APPLICABLE TO ASSESSMENT YEAR 2011-12. ACCORDINGLY, THE ISSUE IS SET ASIDE AND RE STORED TO THE FILE OF THE LD. CIT(A) FOR ADJUDICATION AFRESH AFTER AFFORDING PROPER OPPORTUNITY TO THE ASSESSEE TO THE REGARD. TAKING INTO CONSIDERATION OF THE ORDER PASSED BY TH E CO-ORDINATE BENCH ON THE IDENTICAL ISSUE WE SET ASIDE THE ISSUE TO THE FILE OF THE LEARNED CIT(A) WITH THE DIRECTION UPON HIM TO ADJUDICATE THE MATTER AFRESH UPON TAKIN G INTO CONSIDERATION THE EVIDENCE ALREADY PLACED BEFORE IT AND ALSO THE EVIDENCES WHI CH THE ASSESSEE MAY CHOOSE TO FILE AT THE TIME OF HEARING OF THE MATTER BEFORE THE FIRST APPELLATE AUTHORITY. 5. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. THIS ORDER PRONOUNCED IN OPEN COURT ON 04/03/2019 SD/- SD/- ( AMARJIT SINGH ) ( MS. MADHUMITA ROY ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 04/03/2019 PRITI YADAV, SR.PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. () / THE CIT(A)-2, VADODARA 5. , ! ' , #$%% / DR, ITAT, AHMEDABAD 6. &' () / GUARD FILE. / BY ORDER, //TRUE COPY// / ( DY./ASSTT.REGISTRAR) !, #$ / ITAT, AHMEDABAD