JAGUR SERVICES P. LTD, MUMBAI V. ITO RG 10(2)(1), MUMBAI

ITA 239/MUM/2012

• Counselvise Citation: [2015] 120 COUNSELVISE.COM (IT) 9360 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-02-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: J
• Next Hearing Date: 20-10-2014
• Assessment Year: 2008-2009
• Appeal Filed On: 10-01-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: PREMANAND J
• Assessee Lawyers: NAYAN THAKKAR
• Keywords: Opportunity of being heard; Tax effect
• Section: 14A

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL J BENCH, MUMBAI , , . , BEFORE SHRI VIJAY PAL RAO , JM AND SHRI D. KARUNAKARA RAO, AM ./I.T.A. NO. 239/MUM/2012 ( / ASSESSMENT YEAR : 2008-09 ) JAGUAR SERVICES PVT. LTD. 302, B 3 RD FLOOR, VINAYAK SIDDHI C-79, D.K. SANDU MARG, CHEMBUR MUMBAI-400 071. / VS. INCOME TAX OFFICER R ANGE - 10(2)(1) AAYAKAR BHAVAN MUMBAI. ./ ./PAN/GIR NO. : AAACJ 1950 H ( /APPELLANT ) ( / RESPONDENT ) / APPELLANT BY : SHRI NAYAN THAKKAR ! / RESPONDENT BY : SHRI PREMANAND J. '#$ ! % / DATE OF HEARING : 0 4 / 02/2015 &'( ! % / DATE OF PRONOUNCEMENT : 04/02/2015 ) / O R D E R PER VIJAY PAL RAO, JM : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER DATED 07/09/2011 OF CIT(A) FOR THE ASSESSMENT YEAR 2008-09. THE ASSESS EE HAS RAISED THE FOLLOWING GROUNDS:- 1. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN CONFIRMING THE DISALLOWANCE MADE BY THE ASSESSING OFFICER ON A CCOUNT OF INTEREST EXPENDITURE OF 2 ITA NO.239/M/12 RS.15,28,767/- UNDER THE PROVISIONS OF SECTION 36(1 )(III) OF THE ACT. 2. WITHOUT PREJUDICE TO THE ABOVE GROUND, THE LEARN ED COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN CONFIRMING THE ACTION OF THE ASS ESSING OFFICER IN DISALLOWING THE ENTIRE INTEREST EXPENDITURE OF RS. 15,28,767/- 3. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN MAKING AN ENHANCEMENT OF INCOME ON ACCOUNT OF INTEREST EXP ENDITURE WITHOUT PROVIDING A REASONABLE OPPORTUNITY OF BEING HEARD TO THE APPELL ANT. 4. THE COMMISSIONER OF INCOME TAX (APPEALS) ERRED I N CONFIRMING THE DISALLOWANCE OF EXPENDITURE MADE UNDER SECTION 14A OF THE ACT AGGREGATING TO RS. 1,61,158/- TOWARDS THE EARNING OF DIVIDEND INCOME. 5. WITHOUT PREJUDICE TO THE APPELLANT'S CONTENTION THAT NO EXPENDITURE IS ALLOCABLE TO THE EARNING OF EXEMPT DIVIDEND INCOME AND IN ANY VIEW OF THE MATTER THE APPELLANT SUBMITS THAT THE DISALLOWANCE ESTIMATED A T RS.1,61,158/- IS ARBITRARILY AND GROSSLY EXCESSIVE AND THE SAME REQUIRES TO BE R EDUCED SUBSTANTIALLY. 2. AT THE TIME OF HEARING THE LD. AR OF THE ASSESSE E HAS FILED LETTER DATED 03/2/2015 WHEREBY THE ASSESSEE IS SEEKING TO WITHDRAW THE PRE SENT APPEAL DUE TO REASON THAT THE TAX EFFECT IS VERY LOW. THE LD. AR HAS PLEADED THA T THE APPEAL OF THE ASSESSEE MAY BE ALLOWED TO BE WITHDRAWN AND THE SAME MAY BE DISMISS ED. THE LD. DR HAS NO OBJECTION IF THE APPEAL OF THE ASSESSEE IS DISMISSED AS WITHD RAWN. ACCORDINGLY, THE APPEAL OF THE ASSESSEE IS DISMISSED AS WITHDRAWN. ORDER PRONOUNCED IN THE OPEN COURT ON 4 TH FEBRUARY, 2015. . ) ! &'( ' * +# , 4TH FEBRUARY, 2015 ' ! -$ SD/- SD/- (D. KARUNAKARA RAO) (VIJAY PAL RAO ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER '.$ MUMBAI; +# DATED /2015 . # . ./ JV, SR. PS 3 ITA NO.239/M/12 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. '/ ( ) / THE CIT(A)- 4. '/ / CIT 5. 0- %#1 , 1 , '.$ / DR, ITAT, MUMBAI 6. -2 3$ / GUARD FILE. ! ! ! ! / BY ORDER, % % //TRUE COPY// ' '' ' / !# !# !# !# $ $ $ $ (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI.