ACIT CIR. - 8(1), MUMBAI V. M/s. BIRLA SUNLIFE INSURANCE CO. LTD., MUMBAI

ITA 2421/MUM/2006

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 3416 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 8 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-12-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 13-05-2010
• Assessment Year: 2002-2003
• Appeal Filed On: 19-04-2006
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: HARIGOVIND SINGH

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH B MUMBAI BEFORE SHRI T.R.SOOD, ACCOUNTANT MEMBER & SHRI R.S.PADVEKAR, JUDICIAL MEMBER. I.T.A.NO.2253/MUM/2006 - A.Y 2001-02 BIRLA SUNLIFE INSURANCE CO. LTD., 6 TH FLOOR, VAMAN CENTRE, MAKHWANA RD., OFF. ANDHERI KURLA ROAD, MAROL NAKA, MUMBAI 400093 PAN: AABCB 4623 J VS. ASST. COMMISSIONER OF I.T., CIRCLE 8(1), MUMBAI. AND I.T.A.NO.2421/MUM/2006 - A.Y 2001-02 ASST. COMMISSIONER OF I.T., CIRCLE 8(1), MUMBAI BIRLA SUNLIFE INSURANCE CO. LTD., MUMBAI (APPELLANT) (RESPONDENT) ASSESSEE BY : MR. NIRAJ D. SHETH. REVENUE BY : MR. HARI GOVIND SINGH. O R D E R PER T.R.SOOD, AM: IN BOTH THESE APPEALS VARIOUS GROUNDS HAVE BEEN RA ISED, BUT THE ONLY DISPUTE IS REGARDING CONFIRMATION OF ADDITION ON ACCOUNT OF DISALLOWANCE OF INTEREST U/S.14A. 3. AFTER HEARING BOTH THE PARTIES, WE FIND THAT IDE NTICAL ISSUE CAME UP FOR CONSIDERATION BEFORE THE TRIBUNAL IN ASSESSE ES OWN CASE FOR LAY 2004-05 IN I.T.A.NO.602/MUM/2009 AND AFTER DETAILED DISCUSSION, THE ISSUE WAS DECIDED IN FAVOUR OF THE ASSESSEE VIDE PA RA-9 WHICH IS AS UNDER: 9. WE HAVE CAREFULLY CONSIDERED THE SUBMISSIONS OF THE RIVAL PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND M ERIT IN THE PLEA OF THE LD. COUNSEL FOR THE ASSESSEE THAT THE ASSESSING OFFICER AFTER EXAMINING THE RELEVANT DETAILS AS DISCUSSED IN PARA 5.16 AND 5.17 OF THE ASSESSMENT ORDER HAS 2 DISALLOWED THE EXPENSES OF RS.30,18,496/- FOR EARNI NG DIVIDEND INCOME, THEREFORE, THE PLEA TAKEN BY THE LD. DR THAT THE IS SUE MAY BE SET ASIDE TO THE FILE OF THE ASSESSING OFFICER IS DEVOID OF ANY MERI T. THIS BEING SO, AND KEEPING IN VIEW THAT THE TRIBUNAL IN ORIENTAL INSUR ANCE CO. LTD. VS. ACIT (2009) TIOL -172-ITAT-DEL AFTER DISCUSSING THE IDEN TICAL ISSUE AT LENGTH HAS HELD THAT SEC.44 PROVIDES FOR APPLICATION OF SP ECIAL PROVISIONS FOR COMPUTATION OF PROFITS AND GAINS OF INSURANCE BUSIN ESS IN ACCORDANCE WITH RULE 5 OF SCHEDULE I AND, THEREFORE, IT IS NOT PERM ISSIBLE TO THE ASSESSING OFFICER TO TRAVEL BEYOND SEC.44 AND SCHEDULE-I AND MAKE DISALLOWANCE BY APPLYING SEC.14A OF THE ACT. THE ABOVE ORDER HAS CO NSISTENTLY BEEN FOLLOWED BY THE TRIBUNAL IN THE ABOVE THREE CASES RELIED ON BY THE LD. COUNSEL FOR THE ASSESSEE. IN THE ABSENCE OF ANY DISTINGUISHING FEAT URE BROUGHT ON RECORD BY THE LD. DR WE RESPECTFULLY, FOLLOWING THE CONSISTEN T VIEW OF THE TRIBUNAL HOLD THAT IT IS NOT PERMISSIBLE TO THE ASSESSING OFFICER TO TRAVEL BEYOND SEC.44 AND SCHEDULE-I AND MAKE DISALLOWANCE BY APPLYING SEC.14 A OF THE ACT AND ACCORDINGLY THE DISALLOWANCE OF RS.30,18,496/- MADE BY THE ASSESSING OFFICER AND SUSTAINED BY THE LD. CIT(A) IS DELETED. THE GROUND TAKEN BY THE ASSESSEE IS THEREFORE, ALLOWED. FOLLOWING THE ABOVE DECISION, WE DECIDE THE ISSUE I N FAVOUR OF THE ASSESSEE. 4. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED WHER EAS REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 30 TH DAY OF DECEMBER, 2010. SD/- SD/- (R.S.PADVEKAR) (T.R.SOOD) VICE PRESIDENT ACCOUNTANT MEMBER MUMBAI: 30/12/2010. P/-* 3