COSMOS PRIME PROJECTS LTD, MUMBAI V. ACIT 6(2), MUMBAI

ITA 2353/MUM/2013

• Counselvise Citation: 235319914 RSA 2013
• Duration Of Justice: 1 year(s) 9 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-12-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 30-12-2014
• Assessment Year: 2009-2010
• Appeal Filed On: 25-03-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NEIL PHLIP
• Assessee Lawyers: SUBHODH RATNAPARKHI
• Keywords: Opportunity of being heard
• Section: 14A

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, MUMBAI BEFORE HONBLE S/SHRI H.L. KARWA, PRESIDENT AND B. R.BASKARAN (AM) . . , . . , ./ I.T.A. NO.2353/MUM/2013 ( / ASSESSMENT YEAR :2009-10) M/S COSMOS PRIME PROJECTS LTD, 3 RD FLOOR, CYNTHIANDRA, OFF GOKHALE ROAD, NORTH, DADAR(W), MUMBAI-400028 / VS. ASSTT. COMMISSIONER OF INCOME TAX, 6(2) AAYAKAR BHAVAN, MARINE LINES, M K ROAD, MUMBAI-400020 ( / APPELLANT) .. ( ! / RESPONDENT) ./ #$ ./ PAN/GIRNO.:AABCD6081E % / ASSESSEE BY : SHRI SUBHODH RATNAPARKHI ! & % /RESPONDENT BY : SHRI NEIL PHLIP. ' ( & ) * / DATE OF HEARING : 30.12.2014 +, & ) * /DATE OF PRONOUNCEMENT : 30.12.2014 / O R D E R PER B.R.BASKARAN, ACCOUNTANT MEMBER: THE ASSESSEE HAS FILED THIS APPEAL CHALLENGING THE ORDER DATED 19.12.2012 PASSED BY LD CIT(A)-12, MUMBAI AND IT RE LATES TO THE ASSESSMENT YEAR 2009-10. THE ASSESSEE IS AGGRIEVED BY THE DEC ISION OF LD CIT(A) IN PARTIALLY CONFIRMING THE DISALLOWANCE MADE BY THE A O U/S 14A OF THE ACT. 2. THE LD COUNSEL APPEARING FOR THE ASSESSEE SUBMIT TED THAT THE ASSESSEE HAD REVALUED ITS ASSETS AND ACCORDINGLY THE ENHANCE D VALUE WAS SHOWN IN THE ITA NO.2353/M/13 2 BALANCE SHEET. THE LD A.R SUBMITTED THAT AS PER TH E PROVISIONS OF RULE 8D(3), THE INCREASE ON ACCOUNT OF REVALUATION OF ASSETS HA S TO BE EXCLUDED WHILE COMPUTING THE DISALLOWANCE U/S 14A R.W. RULE 8D OF THE RULES. HE SUBMITTED THAT THE TAX AUTHORITIES HAVE IGNORED THE MANDATE O F THE PROVISIONS OF RULE 8D(3) OF THE I.T RULES. HE SUBMITTED THAT THE ASSESSEE H AD HELD 99.90% OF SHARES OF M/S DAYITA REALTIES PVT LTD AND ITS BOOK VALUE WAS ONLY RS.99,900/-, BUT ITS VALUE WAS REVISED AND ENHANCED TO RS.278.78 LAKHS. HE SU BMITTED THAT THE TAX AUTHORITIES HAVE CONSIDERED THE ENHANCED VALUE WITH OUT IGNORING THE AMOUNT INCREASED BY REVALUATION. ACCORDINGLY HE SUBMITTED THAT THE DISALLOWANCE U/S 14A OF THE ACT WORKED OUT BY THE TAX AUTHORITIES AR E WRONG. 3. WE HAVE HEARD LD D.R AND PERUSED THE RECORD. AD MITTEDLY, THE TAX AUTHORITIES HAVE NOT CONSIDERED THE PROVISIONS OF R ULE 8D(3) OF THE I.T RULES WHILE WORKING OUT THE DISALLOWANCE U/S 14A OF THE ACT. H ENCE, IN OUR VIEW, THIS MATTER REQUIRES FRESH EXAMINATION AT THE END OF THE ASSESS ING OFFICER. ACCORDINGLY, WE MODIFY THE ORDER OF LD CIT(A) AND RESTORE THIS ISSU E TO THE FILE OF THE AO WITH THE DIRECTION TO CONSIDER THE APPLICABILITY OF PROVISIO NS OF RULE 8D(3) AND ACCORDINGLY WORK OUT THE DISALLOWANCE TO BE MADE U/S 14A OF THE ACT. NEEDLESS TO MENTION, THE ASSESSEE SHOULD BE GIVEN PROPER OPPORTUNITY OF BEING HEARD. 4. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 30.12.2014. +, ' - ./ 0 1 30.12.2014 , & 2( 3 SD SD ( . . / H.L. KARWA) ( . . , / B.R. BASKARAN ) / PRESIDENT / ACCOUNTANT MEMBER . ' ( MUMBAI: 30.12.2014. . . ./ SRL , SR. PS ITA NO.2353/M/13 3 ! ' / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. ! / THE RESPONDENT. 3. ' 7) ( ) / THE CIT(A)- CONCERNED 4. ' 7) / CIT CONCERNED 5. 6. 89 2 ): , * : , . ' ( / DR, ITAT, MUMBAI CONCERNED 2 ; < ( / GUARD FILE. = ' / BY ORDER, TRUE COPY > # (ASSTT. REGISTRAR) * : , . ' ( /ITAT, MUMBAI