M/s. Goel Brothers, Pune V. Deputy Commissioner of Income-tax, Circle - 7, Pune

ITA 2241/PUN/2017

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 7461 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 4 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 26-09-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHRI
• Keywords: Earning of tax free income; Rule 8D
• Section: 14A; 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, PUNE BEFORE SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER AND SHRI S.S. VISWANETHRA RAVI, J UDICIAL MEMBER . / ITA NO . 2241 /PUN/201 7 / ASSESSMENT YEAR : 20 12 - 13 M/S. GOEL BROTHERS, 5, SAN MAHU COMPLEX, BUND GARDEN ROAD, OPP. POONA CLUB, PUNE 411001 PAN : AADFG7008F ....... / APPELLANT / V/S. DEPUTY COMMISSIONER OF INCOME TAX , CIRCLE 7, PUNE / RESPONDENT ASSESSEE BY : SHRI KRISHNA GUJARATHI REVENUE BY : SHRI PANKAJ GARG / DATE OF HEARING : 1 5 - 01 - 2020 / DATE OF PRONOUNCEMENT : 28 - 01 - 20 20 / ORDER PER S.S. VISWANETHRA RAVI, JM : TH IS APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 16 - 06 - 2017 PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS) - 5, PUNE [CIT(A)] FOR ASSESSMENT YEAR 2012 - 13. 2 ITA NO. 2241/PUN/2017, A.Y. 2012 - 13 2. GROUND NOS. 1 TO 3 RAISED BY THE ASSESSEE QUESTIONING THE ACTION OF CIT(A) IN CONFIRMING THE DISALLOW ANCE MADE U/S. 14A OF THE ACT R.W. RULE 8D(2)(III) OF THE RULES IN THE FACTS AND CIRCUMSTANCES OF THE CASE. 3. HEARD BOTH PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT THE ISSUE RAISED IN GROUND NOS. 1 TO 3 ARE COVERED BY THE ORDER OF THIS TRIBUNAL IN ASSESSEES OWN CASE FOR A.Y. 2010 - 11 VIDE ITS ORDER DATED 08 - 08 - 2018. ON PERUSAL OF THE SAID ORDER AT PARA NO. 4, THE TRIBUNAL HELD THAT THE DISALLOWANCE SHOULD BE RESTRICTED TO THE EXTENT OF EXPENDITURE DEBITED TO PROFIT AND LOSS ACC OUNT AND REMAND ED THE ISSUE THEREIN TO THE FILE OF AO FOR ITS FRESH VERIFICATION TO EXAMINE THE EXPENDITURE RELATABLE TO EARNING EXEMPT INCOME. FOLLOWING THE SAME, WE REMAND THE ISSUE RAISED IN GROUND NOS. 1 TO 3 TO THE FILE OF AO FOR ITS FRESH CONSIDERAT ION. THE ASSESSEE IS LIBERTY TO FILE ALL THE EVIDENCES BEFORE THE AO IN SUPPORT OF ITS CLAIM. THUS, GROUND NOS. 1 TO 3 RAISED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSE. 4. GROUND NO S. 4 AND 5 RAISED BY THE ASSESSEE CHALLENGING THE ACTION OF CIT(A) IN MAKING FURTHER ADDITIONAL DISALLOWANCE OF RS.67,922/ - UNDER RULE 8D(2)(I) WITHOUT PROVIDING REASONABLE OPPORTUNITY. BEFORE CIT(A), THE ASSESSEE SUBMITTED THAT IN THE FIRST PLACE NO EXPENDITURE INCURRED IN EARNING EXEMPT INCOME. THE CIT(A) OBSER VED IN HIS ORDER AT PARA 4.4.5, THAT THE ASSESSEE HIMSELF ADMITTED THAT THE SE ARE DIRECT EXPENSES TO EARN EXEMPT INCOME. IT IS CLEAR FROM THE SUBMISSION OF ASSESSEE BEFORE THE CIT(A) AT PAGE 12, THAT NO EXPENDITURE WAS INCURRED. THEREFORE, NO ENHANCEMENT IS CALLED FOR UNDER RULE 8D(2)(I) OF THE RULES. THUS, GROUND NOS. 4 AND 5 RAISED BY THE ASSESSEE ARE ALLOWED. 3 ITA NO. 2241/PUN/2017, A.Y. 2012 - 13 5. GROUND NO. 6 IS GENERAL IN NATURE, HENCE, REQUIRES NO ADJUDICATION. 6. IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICA L PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 28 TH JANUARY, 2020 . SD/ - SD/ - (ANIL CHATURVEDI) (S.S. VISWANETHRA RAVI) ACCOUNTANT MEMBER JUDICIAL MEMBE R / PUNE; / DATED : 28 TH JANUARY, 20 20 RK / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 5, PUNE 4. THE PR. COMMISSIONER OF INCOME TAX - 4, PUNE 5. , , , / DR, ITAT, B BENCH, PUNE. 6. / GUARD FILE. // // TRU E COPY // / BY ORDER, / PRIVATE SECRETARY, , / ITAT, PUNE