HYDROCABON RESOURCE DEVELOPMENT COMPANY P LTD, MUMBAI V. DCIT 8(2), MUMBAI

ITA 2602/MUM/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 0716 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-05-2017
• Appeal Filed By: Assessee
• Bench Allotted: H
• Next Hearing Date: 24-01-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 17-04-2014
• Court: TRIBUNAL
• Department Lawyers: POOJA SWAROOP
• Keywords: Earning of tax free income
• Section: 14A

Judgement Text

' IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH H , MUMBAI BEFORE SHRI C.N. PRASAD, JUDICIAL MEMBER AND SHRI RAMIT KOCHAR , ACCOUNTANT MEMBER ITA NO. 2 602 /MUM/201 4 , (A.Y : 20 10 - 11 ) M/S HYDROCARBON RESOURCE DEVELOPMENT COMPANY PVT. LTD 4123 - D, OBEROI GARDEN ESTATES OFF SAKI VIHAR ROAD CHANDIVALI, ANDHERI (EAST) MUMBAI 400 072 P AN : AAACH1026L VS. DCIT - 8(2) ROOM NO.209 AAYAKAR BHAVAN M.K.ROAD MUMBAI 400 072 ( / APPELLANT) ( / RESPONDENT) / APPELLANT BY : NONE / RE SPONDENT BY : MS.POOJA SWAROOP / DATE OF HEARING : 1 . 3 . 2017 / DATE OF PRONOUNCEMENT : 12 . 5 . 2017 / O R D E R P ER C.N.PRASAD (JM) THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD.CIT(APPEALS) - 17 , MUMBAI DATED 10 . 2 .201 4 FOR THE ASSESSMENT YEAR 2010 - 11. 2. THE ASSESSEE IN ITS APPEAL CHALLENGED THE ORDER OF THE LD.CIT(APPEALS) IN SUSTAINING THE DISALLOWANCE OF COMMISSION PAYABLE TO DIRECTORS U/S 40(A)(IA) AND DISALLOWANCE U/S 14A OF THE AC T. 2 ITA NO. 2 602 /MUM/201 4 (A.Y.20 10 - 11 ) M/S HYDROCARBON RESOURCE DEVELOPMENT COMPANY PVT.LTD. 3. INSPITE OF ISSUE OF NOTICE S TO THE ASSESSEE , NONE APPEARED ON BEHALF OF THE ASSESSEE NOR ANY ADJOURNMENT PETITION IS MOVED. TH US WE DISPOSE OFF THE APPEAL BY HEARING THE LD. DR . 4. THE LD. DR SUBMIT TED BEFORE US THAT THE ASSESSING OFFICER DISALLOWED COMMISSION TO DIRECTORS OF RS.16,57,988/ - FOR THE REASON THAT THE ASSESSEE THOUGH DEDUCTED TDS ON SUCH COMMISSION IT WAS REMITTED TO THE GOVERNMENT ACCOUNT BELATEDLY AND BEYOND THE DUE DATE F OR FILING OF RETURN U/S 139(1) OF THE ACT. THE LD. DR SUBMITS THAT THE LD. CIT (APPEALS) SUSTAINED DISALLOWANCE MADE BY THE ASSESSING OFFICER AGREEING WITH THE VIEW OF ASSESSING OFFICER THAT SINCE THE ASSESSEE DID NOT DEPOSIT THE TDS WITHIN THE DUE DATE FOR FILING OF RETURN U/S 139(1) OF THE ACT. HENCE, THE S AID AMOUNT NEEDS TO BE DISALLOWED. 5. ON PERUSAL OF THE ORDERS OF THE AUTHORITIES BELOW, WE FIND NO INFIRMITY IN DISALLOWING THE SAID COMMISSION . THE FINDINGS OF THE AUTHORITIES BELOW ARE NOT CONTROVERTED BY ASSESSEE . REGARDING DISALLOWANCE U/S 14A, THE LD. DR SUBMITS THAT THE ASSESSING OFFICER WHILE COMPLETING THE ASSESSMENT NOTICED THAT ASSESSEE EARNED SHARE OF PROFIT FROM SANGANPUR JV PROJECT AND CLAIMED AS EXEMPTION U/S 10 OF THE ACT AND NO EXPENSES ATTRIBUTABLE FOR EARNING EXEMPT INCOME WERE DISALLOW ED BY THE ASSESSEE AND THEREFORE THE ASSESSING OFFICER INVOKING RULE 8D R.W.S 14A MADE DISALLOWANCE. THE LD. DR SUBMITS THAT THE LD. CI T (APPEALS) SUSTAINED THE DISALLOWANCE. THE FINDINGS OF THE LOWER AUTHORITIES HAVE NOT BEEN CONTROVERTED BY THE ASSESSE E AND THEREFORE WE SUSTAIN THE ORDERS OF THE AUTHORITIES BELOW. 6 . IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISSED . 3 ITA NO. 2 602 /MUM/201 4 (A.Y.20 10 - 11 ) M/S HYDROCARBON RESOURCE DEVELOPMENT COMPANY PVT.LTD. ORDER PRONOUNCED IN THE OPEN COURT ON THE 12 TH DAY OF MAY 2017 . SD/ - SD/ - ( RAMIT KOCHAR ) ( C.N.PRASAD ) / / ACCOUNTANT MEMBER JUDICIAL MEMBER / MUMBAI; / DATED . 0 5 . 2017 LR, SPS / COPY OF THE ORDER FORWARDED TO : / BY ORDER, (ASSTT. REGISTRAR) , / ITAT, MUM 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A), MUMBAI. 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE. // TRUE COPY / /