DCIT CEN CIR 1(1), MUMBAI V. TILAKNAGAR INDUSTRIES LTD, MUMBAI

ITA 2506/MUM/2015

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 0494 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 01-05-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAI PRATAP SINGH
• Assessee Lawyers: K SHIVARAM
• Keywords: Tax effect
• Section: 143(3); 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH A, MUMBAI BEFORE SHRI G.S.PANNU, ACCOUNTANT MEMBER AND SHRI RAVISH SOOD, JUDICIAL MEMBER ITA NO.2506/MUM/2015 (ASSESSMENT YEAR 2010-11) THE DCIT,CEN.CIR.1(1), R.NO.903, 9 TH FLOOR, AAYKAR BHAVAN,M.K.ROAD, MUMBAI 400 020 ...... A PPELLANT VS. M/S. TILAKNAGAR INDUSTRIES LTD., 3 RD FLOOR, INDL. ASSURANCE BLDG., J.D.TATA MARG, CHURCHGATE, MUMBAI 400 020 PAN:AAACT 6047R .... RESPO NDENT APPELLANT BY : SHRI AJAI PRATAP SI NGH RESPONDENT BY : SHRI K.SHIVARAM DATE OF HEARING : 31/05/2017 DATE OF PRONOUNCEMENT : 31/05/2017 ORDER THE CAPTIONED APPEAL FILED BY THE REVENUE PERTAI NING TO ASSESSMENT YEAR 2010-11 IS DIRECTED AGAINST AN ORDER PASSED BY CIT(A)-47, MUMBAI DATED 20/02/2015, WHICH IN TURN, ARISES OUT OF AN ORDER PASSED BY THE ASSESSING OFFICER UNDER SECTION 143(3) OF THE INCOME TAX A CT, 1961 (IN SHORT THE ACT) DATED 31/01/2013. 2. IN THIS APPEAL, REVENUE HAS RAISED THE FOLLOWING GROUND OF APPEAL:- 2 ITA NO.2506/MUM/2015 (ASSESSMENT YEAR 2010-11) I) 'WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) WAS JUSTIFIED IN DELETING THE DISALLOWAN CE OF RS.33,67,807/- UNDER SECTION 14A OF THE INCOME TAX ACT, 1961 IGNORING TH E FACT THAT WORKING OF DISALLOWANCE U/S.14A READ WITH RULE 8D IS MANDATORY FROM A. Y.2008-09 ONWARDS, AS HELD BY JURISDICTIONAL HIGH COURT IN GO DREJ & BOYCE MFG. CO. LIMITED. (328 ITR 81), FURTHER THE PURPOSE FOR WHIC H SHARES ARE HELD / PURCHASED COULD NOT IN ANY MANNER IMPACT OF APPLICA BILITY OF SECTION 14A, AS HELD BY HON'BLE BOMBAY ITAT IN THE CASE OF DCIT, CI RCLE 3(1), MUMBAI VS. DAMANI ESTATE & FINANCE PRIVATE LIMITED [41 TAXMANR I.COM 462 (MUM. TRIB.)]?' 3. AT THE TIME OF HEARING, THE LD. REPRESENTATIVE F OR THE ASSESSEE POINTED OUT THAT THE TAX EFFECT INVOLVED IN THIS APPEAL I S LESS THAN RS.10.00 LACS AS PRESCRIBED IN THE CBDT CIRCULAR NO.21/2015 DATE D 10/12/2015, WHICH HAS REVISED THE MONETARY LIMITS FOR FILING OF APPEALS B Y THE DEPARTMENT BEFORE THE TRIBUNAL RETROSPECTIVELY. THE LD. DEPARTMENTAL REPR ESENTATIVE HAS NOT DISPUTED THE AFORESAID FACT-SITUATION. 4. NOTABLY, IN THE INSTANT CASE, THE ASSESSING OFFI CER MADE A DISALLOWANCE UNDER SECTION 14A OF THE ACT OF RS.33,67,807/- AND THE CIT(A) HAS RESTRICTED IT TO RS.79,836/-, THEREBY SHOWING THAT THE AMOUNT DIS PUTED BY THE REVENUE IN APPEAL BEFORE US IS RS.32,87,971/-. THE TAX EFFECT ON THIS DISPUTED INCOME COMES TO RS.9,86,391/-, EXCLUDING THE SURCHARGE AND EDUCATION CESS OF RS.1,31,190/-. OUR CO-ORDINATE BENCH IN THE CASE O F DCIT VS. M/S. DOME BELL ELECTRONICS INDIA LTD., IN ITA NO.2480/MUM/2012 DAT ED 22/07/2016 HAS HELD THAT FOR THE PURPOSES OF CONSIDERING THE AMOUNT OF TAX EFFECT AS ENVISAGED IN CBDT CIRCULAR DATED 10/12/2015 (SUPRA), WHAT HAS TO BE CONSIDERED IS THE AMOUNT OF TAX EXCLUDING THE AMOUNT OF SURCHARGE AND EDUCATION CESS. THEREFORE, IN THIS VIEW OF THE MATTER, THE TAX EFF ECT IN DISPUTE IN THE CAPTIONED APPEAL IS STATED TO BE BELOW THE MONETARY LIMIT OF RS.10.00 LACS SPECIFIED IN THE 3 ITA NO.2506/MUM/2015 (ASSESSMENT YEAR 2010-11) CBDT CIRCULAR DATED 10/12/2015 (SUPRA), THE SAME IS DISMISSED AS NOT MAINTAINABLE. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF BOTH THE PARTIES AT THE CONCLUSION OF HEARING ON 31/05/2017. SD/- SD/- (RAVISH SOOD) (G.S.PANNU) JUDICIAL MEMBER ACCOCUNTANT MEMBER MUMBAI, DATED 31/05/2017 VM , SR. PS COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT , 2. THE RESPONDENT. 3. THE CIT(A)- 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI