R.B.K. SHARE BROKING LTD, MUMBAI V. ITO 4(2)(3), MUMBAI

ITA 2533/MUM/2009

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 4221 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-10-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 07-10-2010
• Assessment Year: 2006-2007
• Appeal Filed On: 20-04-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JI TENDRA YADAV
• Keywords: Retrospective amendment
• Section: 143(3)

Judgement Text

I .T.A NO.2533/MUM/2009 ASSESSMENT YEAR: 2006-07 1 IN THE INCOME TAX APPELLATE TRIBUNAL, D BENCH, MUMBAI. BEFORE SHRI PRAMOD KUMAR(ACCOUNTANT MEMBER) AND SMT. ASHA VIJAYARAGHAVAN (JUDICIAL MEMBER) I.T.A NO.2533/MUM/2009 ASSESSMENT YEAR: 2006-07 R.B.K. SHARE BROKING & LTD., .. APPELLANT 1A, ALLI CHAMBERS, 1 ST FLOOR, MEADOWS STREET, FORT, MUMBAI-400 023. PA NO.AAACR 5488 A VS THE I.T.O. 4(2)(3), .. RESPONDEN T 6 TH FLOOR, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI. APPELLANT BY: SHRI PRAKASH JOTWANI RESPONDENT BY : SHRI JITENDRA YADAV O R D E R PER PRAMOD KUMAR: 1. BY WAY OF THIS APPEAL, THE ASSESSEE HAS CALLED INTO QUESTION CORRECTNESS OF CIT(A)S ORDER DATED 31 ST MARCH, 2009, IN THE MATTER OF ASSESSMENT UNDER SE CTION 143(3) FOR ASSESSMENT YEAR 2006-07. 2. THE ONLY GRIEVANCE RAISED BY THE ASSESSEE IN THI S APPEAL IS THAT THE CIT (A) ERRED IN CONFIRMING THE DISALLOWANCE OF ` .4,46,614/- U/S.14A READ WITH RULE 8D. 3. AS FAR AS THIS ISSUE IS CONCERNED, WE FIND THAT THE AO HAS INVOKED RULE 8D FOLLOWING THE DECISION OF THE ITAT MUMBAI (SB) IN THE CASE OF DAGA CAPITAL MANAGEMENT PVT LTD., BUT AS PER THE RECENT JUDGMENT OF THE HONBLE BOMBAY HI GH COURT IN THE CASE OF GODREJ& BOYCE LIMITED VS. ACIT, (ITA NO.626 OF 2010) DATED 12.8.2 010, RULE 8D DOES NOT RETROSPECTIVE EFFECT AND, ACCORDINGLY, IT CANNOT BE INVOKED IN THE PRESENT CASE. I .T.A NO.2533/MUM/2009 ASSESSMENT YEAR: 2006-07 2 HOWEVER, THE MATTER NEEDS TO BE RESTORED BACK TO TH E FILE OF THE ASSESSING OFFICER FOR DETERMINING A REASONABLE DISALLOWANCE OF EXPENS ES INCURRED TO EARN THE TAX EXEMPTED INCOME. WE ORDER ACCORDINGLY. 4. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS T REATED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 20 TH OCTOBER, 2010 SD/- (ASHA VIJAYARAGHAVAN) (JUDICIAL MEMBER) SD/- (PRAMOD KUMAR) (ACCOUNTANT MEMBER) MUMBAI, DATED 20 TH OCTOBER , 2010 PARIDA COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. COMMISSIONER OF INCOME TAX (APPEALS)-IV, MUMBAI 4. COMMISSIONER OF INCOME TAX, -4, MUMBAI 5. DEPARTMENTAL REPRESENTATIVE, BENCH D, MUMBAI //TRUE COPY// BY ORDER ASSTT. REGISTRAR, ITAT, MUMBAI I .T.A NO.2533/MUM/2009 ASSESSMENT YEAR: 2006-07 3