Sarabhai Holdings Pvt. Ltd., Ahmedabad V. The Dy.CIT, Circle-8, Ahmedabad

ITA 2327/AHD/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 8306 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 9 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-05-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 06-08-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR JAYANT JHAVERI
• Assessee Lawyers: M K PATEL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH (BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER) ITA. NO: 2327/AHD/2015 (ASSESSMENT YEAR: 2011-12) SARABHAI HOLDINGS PVT. LTD. OPP. JANSATTA PRESS, MIRZAPUR ROAD, MIRZAPUR, AHMEDABAD V/S THE D.C.I.T. CIRCLE-8, AHMEDABAD (APPELLANT) (RESPONDENT) PAN: AAECS 6919B APPELLANT BY : SHRI M.K. PATEL, AR RESPONDENT BY : DR. JAYANT JHAVERI, SR. D.R. ( )/ ORDER DATE OF HEARING : 09 -05-201 8 DATE OF PRONOUNCEMENT : 21-05-2018 PER MAHAVIR PRASAD, JUDICIAL MEMBER 1. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD. CIT(A)-9, AHMEDABAD DATED 28.05.2015 PERTAINING TO A.Y. 2011- 12 AND FOLLOWING GROUNDS HAVE BEEN TAKEN:. ITA NO. 2327 /AHD/2015 . A.Y. 2011-12 2 1. THAT ON FACTS AND IN LAW THE LEARNED COMMISSION ER OF INCOME TAX (APPEALS) HAS GRIEVOUSLY ERRED IN PARTIALLY CONFIRMING THE DISALL OWANCE MADE U/S.14A OF THE ACT. 2. THAT ON FACTS AND IN LAW THE LEARNED COMMISSION ER OF INCOME TAX (APPEALS) HAS GRIEVOUSLY ERRED IN CONFIRMING THE ADDITION OF RS.1 ,02,723/- U/S.40(A)(IA) OF THE ACT. 2. FACTS OF THE CASE ARE THAT ON PERUSAL OF THE DETAIL S SUBMITTED DURING THE COURSE OF ASSESSMENT PROCEEDINGS, IT IS SEEN THAT THE ASSE SSEE HAS EARNED DIVIDEND INCOME TO THE TUNE OFRS. 10,29,734/- WHICH IS EXEMP T FROM TAX U/S. 10(34) AND 10(35) OF THE ACT. THE INVESTMENT MADE BY THE ASSES SEE WAS AT RS.27,13,68,000/- AS ON 01/04/2010 AND THE INVESTME NT AT THE CLOSE OF THE YEAR AS ON 31/03/2011 WAS AT RS.23,48,44,000/-. THE TOTA L VALUE OF LOANS AT THE BEGINNING OF THE YEAR AS WELL AS AT THE CLOSE OF TH E YEAR REMAINS THE SAME AT RS.14,58,000/-. SUBSTANTIAL FUND IS INVESTED INTO T HE DIVIDEND YIELDING SCRIPTS. THEREAFTER A SHOW CAUSE NOTICE WAS ISSUED TO THE AS SESSEE AND REPLIED WAS SUBMITTED BY THE ASSESSEE BUT LD. A.O. WAS NOT CONV INCED WITH THE REPLY FILED BY THE ASSESSEE AND MADE ADDITION OF RS. 12,65,530/ -. 3. ON PERUSAL OF RECORD OF THE ASSESSEE IT WAS FOUND T HAT THE ASSESSEE HAS PAID RENT AND SERVICE CHARGES OF RS. 1,02,723/- TO BAKUB HAI AMBALAL (REALTY) PVT. LTD. BUT ASSESSEE HAS NOT DEDUCTED TDS ON THE SAID PAYMENT OF RS. 1,02,723/-. THEREAFTER A SHOW CAUSE NOTICE WAS ISSUED TO THE AS SESSEE BUT LD. A.O. WAS NOT CONVINCED WITH THE REPLY FILED BY THE ASSESSEE HAS MADE ADDITION OF RS. 1,02,723/-. 4. AGAINST THE ABOVE SAID ADDITIONS, APPELLANT PREFERR ED FIRST STATUTORY APPEAL BEFORE THE LD. CIT(A). ITA NO. 2327 /AHD/2015 . A.Y. 2011-12 3 5. NOW APPELLANT IS BEFORE US. 6. WE HAVE HEARD BOTH THE PARTIES AND GONE THROUGH THE RELEVANT RECORD. LD. A.R. CITED AN ORDER OF CO-ORDINATE BENCH IN ASSESSEES O WN CASE IN ITA NO. 2741/AHD/2013 FOR ASSESSMENT YEAR 2010-11 ON IDENTI CAL ISSUES, ITAT BENCH SET ASIDE THE ORDER OF LD. CIT(A) AND REMANDED BACK THE MATTER TO THE FILE OF THE A.O. THUS, FOLLOWING THE CO-ORDINATE BENCH DECI SION, WE ALSO REMAND THIS MATTER BACK TO THE FILE OF THE A.O. TO DECIDE A MAT TER AFRESH IN ACCORDANCE WITH LAW IN THE LIGHT OF DECISION IN THE CASE OF ANSAL L AND MARK TOWNSHIP (P) LTD. (SUPRA). ASSESSEE IS ALSO DIRECTED TO CO-OPERATE WI TH THE LD. A.O. FOR SPEEDY DISPOSAL OF THE APPEAL. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN OPEN COURT ON 21 - 05- 2018 SD/- SD/- (WASEEM AHMED) (MAHAVIR PRASAD) ACCOUNTANT MEMBER TRUE COPY JUDICIAL MEMBER AHMEDABAD: DATED 21/05/2018 RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AHME DABAD