UDHAV HOLDINGS P.LTD, MUMBAI V. DCIT CIR 3(3), MUMBAI

ITA 2318/MUM/2012

• Counselvise Citation: 231819914 RSA 2012
• Duration Of Justice: 1 year(s) 4 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-08-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 14-08-2013
• Assessment Year: 2007-2008
• Appeal Filed On: 09-04-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: RAJESH CHAMARIA
• Keywords: Earning of tax free income
• Section: 14A

Judgement Text

, , , , , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES F, MUMBAI .. , ! ' # $$, % ', & BEFORE SHRI R.S.SYAL, AM AND SHRI SANJAY GARG, JM ITA NO.2318/MUM/2012 : ASST.YEAR 2007-2008 M/S.UDHAV HOLDINGS PRIVATE LIMITED 11-A MITTAL CHAMBERS, NARIMAN POINT MUMBAI 400 021. PAN : AAACU0808K. THE DY.COMMISSIONER OF INCOME-TAX CIRCLE 3(3) MUMBAI. ( '( / // / APPELLANT) * * * * / VS. ( +,'(/ RESPONDENT) '( - -- - . . . . / APPELLANT BY : SHRI RAJESH CHAMARIA +,'( - . - . - . - . / RESPONDENT BY : SHRI SANJEEV JAIN * - /! / / / / DATE OF HEARING : 14.08.2013 012 - /! / DATE OF PRONOUNCEMENT : 16.08.2013 ' 3 ' 3 ' 3 ' 3 / / / / O R D E R PER R.S.SYAL (AM) : THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDER PASSED BY THE COMMISSIONER OF INCOME-TAX (APPEALS) ON 24.10.2011, IN RELATION TO THE ASSESSMENT YEAR 2007-2008. 2. THE ONLY ISSUE RAISED IN THIS APPEAL THROUGH VAR IOUS GROUNDS IS AGAINST THE CONFIRMATION OF DISALLOWANCE U/S 14A RE AD WITH RULE 8D. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT THE A SSESSEE RECEIVED CERTAIN EXEMPT INCOME. THE ASSESSEE OFFERED ` 40,23,915 TOWARDS DISALLOWANCE U/S 14A. HOWEVER, THE ASSESSING OFFICE R MADE ADDITION OF ` 84,38,356 TOWARDS INTEREST EXPENDITURE RELATABLE TO THE ITA NO.2318/MUM/2012. M/S.UDHAV HOLDINGS PVT.LTD. 2 INVESTMENTS MADE IN SECURITIES GIVING EXEMPT INCOME . THE LEARNED CIT(A) UPHELD THE ASSESSMENT ORDER ON THIS ISSUE. 3. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED T HE RELEVANT MATERIAL ON RECORD. WE FIND THAT THE ASSESSMENT YEA R INVOLVED BEFORE US IS 2007-2008. THE HONBLE JURISDICTIONAL HIGH CO URT IN THE CASE OF GODREJ & BOYCE LTD. MFG. CO. V. DCIT [(2010) 328 IT R 81 (BOM)] HAS HELD THAT THE PROVISIONS OF RULE 8D CANNOT BE A PPLIED TO ANY ASSESSMENT YEAR PRIOR TO 2008-2009. SINCE THE ASSES SMENT YEAR UNDER CONSIDERATION IS PRIOR TO ASSESSMENT YEAR 2008-2009 , AS SUCH RULE 8D CANNOT BE INVOKED FOR THE PURPOSES OF COMPUTING DIS ALLOWANCE U/S 14A. WE, THEREFORE, VACATE THE ORDERS OF THE LOWER AUTHORITIES IN THIS REGARD. THE MATTER IS ACCORDINGLY SENT BACK TO THE AO FOR WORKING OUT THE DISALLOWANCE UNDER THIS PROVISION ON SOME `REAS ONABLE BASIS AS HAS BEEN HELD BY THE HONBLE HIGH COURT IN GODREJ & BOYCE LTD. MFG. CO. (SUPRA). 4. 4 /5 %* 4/ - 6 7- 89 : ; / - #/ <= > IN THE RESULT, THE APPEAL IS ALLOWED FOR STATISTICAL P URPOSES. ORDER PRONOUNCED ON THIS 16 TH DAY OF AUGUST, 2013. ' 3 - 012 ?'*5 1 - $ SD/- SD/- (SANJAY GARG) (R.S.SYAL) % ' % ' % ' % ' / JUDICIAL MEMBER ! ' ! ' ! ' ! ' / ACCOUNTANT MEMBER MUMBAI ; ?'* DATED : 16 TH AUGUST, 2013. DEVDAS* ITA NO.2318/MUM/2012. M/S.UDHAV HOLDINGS PVT.LTD. 3 ' 3 - +%/;@ A @2/ ' 3 - +%/;@ A @2/ ' 3 - +%/;@ A @2/ ' 3 - +%/;@ A @2// COPY OF THE ORDER FORWARDED TO : 1. '( / THE APPELLANT 2. +,'( / THE RESPONDENT. 3. B () / THE CIT, MUMBAI. 4. B / CIT(A) 7, MUMBAI. 5. @E$ +%/%* , , / DR, ITAT, MUMBAI 6. $F / GUARD FILE. ' 3* ' 3* ' 3* ' 3* / BY ORDER, ,@/ +%/ //TRUE COPY// 8 8 8 8/ // /< # < # < # < # ( DY./ASSTT. REGISTRAR) , , , , / ITAT, MUMBAI