MIKI INDUSTRIES & COMPANIES P. LTD, MUMBAI V. DCIT CC 2(2), MUMBAI

ITA 2418/MUM/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 2535 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-07-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: F
• Next Hearing Date: 13-04-2017
• Assessment Year: 2007-2008
• Appeal Filed On: 28-04-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: C W ANGOLKAR
• Assessee Lawyers: DEEPAK SAWANT
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH J, MUMBAI BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER AN D SHRI SANJAY GARG, JUDICIAL MEMBER ITA NO.2418/M/2015 ASSESSMENT YEAR: 2011-12 M/S. C.R. DEVELOPMENTS PVT. LTD., 27 TEJPAL ROAD, AGARWAL MARKET, VILE PARLE (EAST), MUMBAI 400 057 PAN: AACC1658D VS. DY. COMMISSIONER OF INCOME TAX (OSD), RANGE-8(1), MUMBAI (APPELLANT) (RESPONDENT) PRESENT FOR: ASSESSEE BY : SHRI DEEPAK SAWANT, A.R. REVENUE BY : SHRI C.W. ANGOLKAR, D.R. DATE OF HEARING : 20.07.2016 DATE OF PRONOUNCEMENT : 20.07.2016 O R D E R PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSES SEE AGAINST THE ORDER DATED 09.02.2015 OF THE COMMISSIONER OF INCOME TAX (APPEALS) [HEREINAFTER REFERRED TO AS THE CIT(A)] RELEVANT TO ASSESSMENT Y EAR 2011-12. 2. TODAY, MR. DEEPAK SAWANT, OFFICE ASSISTANT WAS P RESENT ON BEHALF OF THE ASSESSEE AND SUBMITTED AN ADJOURNMENT APPLICATI ON. HOWEVER, CONSIDERING THE ISSUE INVOLVED AND THE FACTS OF THE CASE, WE AR E OF THE VIEW THAT THE CASE CAN BE DECIDED AFTER HEARING THE LD. D.R AND HENCE, WE PROCEED TO DECIDE THE APPEAL ON MERITS. 3. THE SOLE GROUND TAKEN BY THE ASSESSEE IN THIS AP PEAL IS AGAINST THE DISALLOWANCE OF RS.2,79,715/- UNDER SECTION 14A MAD E BY THE ASSESSING OFFICER (HEREINAFTER REFERRED TO AS THE AO) AS AGAI NST THE SUO-MOTO ITA NO.2418/M/2015 M/S. C.R. DEVELOPMENTS PVT. LTD. 2 DISALLOWANCE OF RS.2,05,701/- MADE BY THE ASSESSEE. FROM THE STATEMENTS OF FACTS ON THE FILE, IT REVEALS THAT THE GRIEVANCE OF THE ASSESSEE IS THAT WHILE CALCULATING DISALLOWANCE UNDER SECTION 14A READ WIT H RULE 8D, THE AO HAS ALSO INCLUDED THOSE INVESTMENTS, INCOME FROM WHICH IS TA XABLE UNDER THE ACT. ACCORDING TO THE ASSESSEE, THE FOLLOWING INVESTMENT S ARE REQUIRED TO BE EXCLUDED FOR THE PURPOSE OF COMPUTATION OF DISALLOW ANCE UNDER SECTION 14A READ WITH RULE 8D OF THE I.T. ACT. ITEM EXCLUDED FROM THE OPENING VALUE OF INVESTMENT S (A) OWNERSHIP PREMISES : RS. 5,06,546/- (B) 1000 BONDS OF RURAL ELECTRIFICATION CORPN. LTD. : R S.1,00,00,000/- TOTAL : RS.1,05,06,546 /- ITEM EXCLUDED FROM THE CLOSING VALUE OF INVESTME NTS (A) OWNERSHIP PREMISES : RS. 3,24,967/- (B) 1000 BONDS OF RURAL ELECTRIFICATION CORPN. LTD. : R S.1,00,00,000/- TOTAL : RS.1,03,24,967/- 4. THE LD. D.R. HAS ALSO FAIRLY AGREED THAT THE INV ESTMENTS INCOME RELATING TO WHICH IS TAXABLE ARE NOT TO BE CONSIDERED FOR TH E PURPOSE OF COMPUTATION OF EXPENDITURE UNDER SECTION 14A. IN VIEW OF THE ABOV E SUBMISSIONS, WE RESTORE THE MATTER TO THE FILE OF THE AO WITH A DIRECTION T O VERIFY THE FACTS AND THEN TO RE-COMPUTE THE DISALLOWANCE UNDER SECTION 14A BY EX CLUDING THE INVESTMENTS , IF ANY, INCOME FROM WHICH IS OTHERWISE TAXABLE. 5. WITH THE ABOVE DIRECTIONS, THE APPEAL OF THE ASS ESSEE IS HEREBY TREATED AS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 20.07.2016. SD/- SD/- (D. KARUNAKARA RAO) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 20.07.2016. * KISHORE, SR. P.S. ITA NO.2418/M/2015 M/S. C.R. DEVELOPMENTS PVT. LTD. 3 COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT (A) CONCERNED, MUMBAI THE DR CONCERNED BENCH //TRUE COPY// [ BY ORD ER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.