P.H. PATEL INDUSTRIAL MANUFACTURERS PVT. LTD., MUMBAI V. D.C.I.T. CIR-1(2), MUMBAI

ITA 2461/MUM/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 3729 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-04-2013
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2007-2008
• Appeal Filed On: 12-04-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ROOPAK KUMAR
• Assessee Lawyers: K K VED
• Section: 14A; 115JB

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES C MUMBAI . . , / BEFORE SHRI I.P. BANSAL, JUDICIAL MEMBER /AND . , SHRI D.KARUNAKAR RAO, ACCOUNTANT MEMBER . / ITA NO.2461/MUM/2012 ! ! ! ! / A.Y. 2007-08 P.H. PATEL INDUSTRIAL MANUFACTURERS PVT. LTD. CAMBATTA BUILDING, 4 TH FLOOR, J.TATA ROAD, CHURCHGATE, MUMBAI - 400 020. / VS. THE DY. COMM. OF INCOME TAX, CIRCLE 1(2), AAYKAR BHAVAN, MAHARSHI KARVE ROAD, MUMBAI - 400 020. ' ./ #$ ./ PAN/GIR NO. : AAACP 2900P ( '% / APPELLANT ) .. ( &''% / RESPONDENT ) '% ( / APPELLANT BY: SHRI K.K.VED &''% ) ( / RESPONDENT BY : SHRI ROOPAK KUMAR ) * / DATE OF HEARING : 25/04/2013 +,! ) * / DATE OF PRONOUNCEMENT : 25/04/2013 - / O R D E R PER I.P.BANSAL, J.M: THIS IS AN APPEAL FILED BY THE ASSESSEE. IT IS D IRECTED AGAINST THE ORDER PASSED BY LD. CIT(A)-2, MUMBAI DATED 9/01/2012 FOR ASSESSMENT YEAR 2007- 08. THE ONLY GRIEVANCE OF THE ASSESSEE IN THE PR ESENT APPEAL IS REGARDING DISALLOWANCE MADE UNDER THE PROVISIONS OF SECTION 14A R.W.R. 8D UNDER NORMAL PROVISIONS AS WELL AS IN THE COMPUTATION OF INCOME UNDER SECTION 115JB OF THE INCOME TAX ACT, 1961 (THE ACT). . / ITA NO.2461/MUM/2012 ! ! ! ! / A.Y. 2007-08 2 2. AT THE OUTSET IT WAS THE CASE OF LD. A.R THAT THIS ISSUE HAS TO BE SENT BACK TO THE FILE OF AO AS THE DISALLOWANCE UPHELD B Y LD. CIT(A) LEAD TO A CONCLUSION THAT THE SAME HAS BEEN UPHELD ON APPLICA TION OF RULE 8D. HE SUBMITTED THAT ACCORDING TO THE DECISION OF HONBLE BOMBAY HIGH COURT IN THE CASE OF GODREJ & BOYCE MFG. CO. VS. DCIT , 328 IT R 81(BOM), DISALLOWANCE CANNOT BE MADE WITH REFERENCE TO RULE 8D IN RESPECT OF ASSESSMENT YEARS PRIOR TO A.Y 2008-09. THUS HE PLEADED THAT THE MATTER SH OULD BE RESTORED BACK TO THE FILE OF AO WITH A DIRECTION TO RECALCULATE THE DISALLOWANCE AS PER AFOREMENTIONED DECISION OF HONBLE BOMBAY HIGH COU RT IN THE CASE OF GODREJ & BOYCE MFG. CO. VS. DCIT(SUPRA). 3. ON THE OTHER HAND, LD. DR RELIED UPON THE ORDER PASSED BY LD. CIT(A). 4. WE HAVE HEARD BOTH THE PARTIES AND THEIR CONTENT IONS HAVE CAREFULLY BEEN CONSIDERED. RULE 8D IS NOT APPLICABLE IN RESPECT O F A.Y 2007-08. THEREFORE, WHILE MAKING DISALLOWANCE U/S.14A, RULE 8D CANNOT B E APPLIED. HOWEVER, A REASONABLE DISALLOWANCE SHOULD BE MADE AS PER AFORE MENTIONED DECISION OF HONBLE BOMBAY HIGH COURT IN THE CASE OF GODREJ & BOYCE MFG. CO. VS. DCIT(SUPRA). 5. IN THIS VIEW OF THE SITUATION, WE CONSIDER IT APPROPRIATE TO ACCEPT THE REQUEST OF LD. AR FOR REMITTING BACK THIS MATTER TO THE FILE OF AO WITH A DIRECTION TO RE-COMPUTE THE DISALLOWANCE U/S. 14A WITHOUT REFERRING TO RULE- 8D IN ACCORDANCE WITH THE AFOREMENTIONED DECISION OF HONBLE BOMBAY HIGH COURT IN THE CASE OF GODREJ & BOYCE MFG. CO. VS. DC IT(SUPRA) UNDER THE NORMAL CALCULATION AS WELL AS CALCULATION OF INCOME UNDER SECTION 115 JB OF THE ACT. WE DIRECT ACCORDINGLY. . / ITA NO.2461/MUM/2012 ! ! ! ! / A.Y. 2007-08 3 5. IN THE RESULT, FOR STATISTICAL PURPOSES, THE APP EAL IS TREATED TO BE ALLOWED IN THE MANNER AFORESAID. ORDER PRONOUNCED IN THE OPEN COURT ON 25/04/2013 - ) +,! / 0 1 25 /04/2013 , ) 2 3 SD/- SD/ - ( . / D.KARUNAKAR RAO ) ( . . / I.P. BANSAL ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER MUMBAI; 0 DATED 25 /04/2013 - - - - ) )) ) &*45 &*45 &*45 &*45 65!* 65!* 65!* 65!* / COPY OF THE ORDER FORWARDED TO : 1. '% / THE APPELLANT 2. &''% / THE RESPONDENT. 3. 7 ( ) / THE CIT(A)- 4. 7 / CIT 5. 582 &* , , / DR, ITAT, MUMBAI 6. 2 9 / GUARD FILE. - - - - / BY ORDER, '5* &* //TRUE COPY// : :: : / ; ; ; ; # # # # (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI . . ./ VM , SR. PS