ACIT 12(3), MUMBAI V. ASHITA PAREKH, MUMBAI

ITA 2381/MUM/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 59704 (ITAT-MUMBAI)
• Duration Of Justice: 9 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-01-2012
• Appeal Filed By: Department
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 25-03-2011
• Court: TRIBUNAL
• Department Lawyers: PKB MENEN
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH A BEFORE SHRI D.MANMOHAN (VP) & SHRI PRAMOD KUMAR (AM ) I.T.A.NO. 2381/MUM/2011 (ASSESSMENT YEAR : 2006-07) DCIT-12(3) R.NO. 135, 1 ST FLOOR AAYAKAR BHAVAN M.K.ROAD MUMBAI-400 020. VS. ASHITA PAREKH 608, DALAMAL HOUSE NARIMAN POINT MUMBAI-400 021. APPLICANT RESPONDENT PAN/GIR NO. : AITPP7834J ASSESSEE BY : NONE DEPARTMENT BY : SHRI P.K.B. MENEN DATE OF HEARING : 17.1.2012 DATE OF PRONOUNCEMENT : 18.1.2012 ORDER PER D. MANMOHAN (VP) :- THIS IS AN APPEAL FILED AT THE INSTANCE OF THE RE VENUE AND IT PERTAINS TO A.Y. 2006-07. 2. THE ASSESSING OFFICER INVOKED PROVISIONS OF SECT ION 14A OF THE INCOME TAX ACT TO DISALLOW A PORTION OF THE EXPENDI TURE INCURRED, AS PER RULE 8D OF THE INCOME TAX RULES. ON AN APPEAL FILED BY THE ASSESSEE LEARNED CIT(A) OBSERVED THAT RULE 8D CANNOT BE APPL IED TO THE EARLIER ASSESSMENT YEARS SINCE IT IS PROSPECTIVE IN NATURE. HE FURTHER OBSERVED THAT HAVING REGARD TO THE CIRCUMSTANCES OF THE CASE , THE ASSESSING OFFICER CAN DISALLOW ONLY REASONABLE EXPENDITURE IN LINE WI TH THE VIEW TAKEN BY HON'BLE BOMBAY HIGH COURT IN THE CASE OF GODREJ & B OYCE VS. DCIT IN IT APPEAL NO. 626 OF 2010 AND ACCORDINGLY SET ASIDE TH E ISSUE TO THE FILE OF THE ASSESSING OFFICER. 3. AGGRIEVED, THE REVENUE IS IN APPEAL BEFORE US. A DMITTEDLY THE ISSUE STANDS COVERED BY THE DECISION OF HON'BLE BOMBAY HI GH COURT (SUPRA). UNDER THE CIRCUMSTANCES, LEARNED CIT(A) WAS JUSTIFI ED IN FOLLOWING THE DECISION OF HON'BLE BOMBAY HIGH COURT. WE THEREFORE DO NOT FIND ANY ASHITA PAREKH 2 INFIRMITY IN THE ORDER PASSED BY LEARNED CIT(A). A S DECLARED IN THE OPEN COURT, THE APPEAL FILED BY THE REVENUE IS DISMISSED . SD/- (PRAMOD KUMAR) ACCOUNTANT MEMBER SD/- (D.MANMOHAN) VICE-PRESIDENT DATED : 18 TH JANUARY, 2012. COPY TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A)-CONCERNED. 4. THE CIT, CONCERNED. 5. THE DR CONCERNED, MUMBAI 6. GUARD FILE BY ORDER TRUE COPY ASSTT. REGISTRAR, ITAT, MUMBAI PS