Kanta Kavar Dadha, CHENNAI V. ITO, CHENNAI

ITA 261/CHNY/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 95880 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-08-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 10-07-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 30-01-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P RADHAKRISHNAN
• Assessee Lawyers: D ANAND

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL S M C BENCH, CHENNAI ... , BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER ./ ITA NO.261/MDS/2015 ! '#! / ASSESSMENT YEAR : 2006-07 SMT. KANTA KAVAR DADHA, NO.250, LLOYDS ROAD, CHENNAI - 600 014. PAN : AAEPD 4542 Q V. THE INCOME TAX OFFICER, BUSINESS WARD VIII(3), CHENNAI - 600 034. (%&/ APPELLANT) ('(%&/ RESPONDENT) %& ) * / APPELLANT BY : SHRI D. ANAND, ADVOCATE '(%& ) * / RESPONDENT BY : SH. P. RADHAKRISHNAN, JCIT + ' ) ,- / DATE OF HEARING : 10.07.2015 ./# ) ,- / DATE OF PRONOUNCEMENT : 07.08.2015 / O R D E R THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-3, CHENNAI , DATED 10.10.2014 AND PERTAINS TO ASSESSMENT YEAR . 2. SHRI D. ANAND, THE LD. COUNSEL FOR THE ASSESSEE, SUBMITTED THAT THE ASSESSING OFFICER ESTIMATED THE EXPENDITUR E RELATABLE TO 2 I.T.A. NO.261/MDS/15 EARNING OF EXEMPTED INCOME BY APPLYING RULE 8D OF T HE INCOME-TAX RULES, 1962. ACCORDING TO THE LD. COUNSEL, THE ASS ESSMENT YEAR UNDER CONSIDERATION IS 2006-07 AND RULE 8D IS APPLI CABLE ONLY FROM ASSESSMENT YEAR 2008-09. THEREFORE, ACCORDING TO T HE LD. COUNSEL, THE EXPENDITURE INCURRED FOR EARNING EXEMPTED INCOM E CANNOT BE COMPUTED BY APPLYING RULE 8D. PLACING RELIANCE ON THE DECISION OF THIS TRIBUNAL IN I.T.A. NO.1138/MDS/2013 DATED 05.0 8.2013, THE LD. COUNSEL SUBMITTED THAT ON IDENTICAL CIRCUMSTANCES, 2% OF THE EXEMPTED INCOME WAS ESTIMATED AS EXPENDITURE INCURR ED FOR EARNING THE EXEMPTED INCOME. 3. I HAVE HEARD SH. P. RADHAKRISHNAN, THE LD. DEPAR TMENTAL REPRESENTATIVE ALSO. ADMITTEDLY, RULE 8D CAME INTO OPERATION FROM THE ASSESSMENT YEAR 2008-09. THEREFORE, IT IS NOT APPLICABLE FOR ASSESSMENT YEAR 2006-07 WHICH IS UNDER CONSIDERATIO N. HENCE, THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT RUL E 8D OF THE INCOME-TAX RULES, 1962 CANNOT BE PRESSED INTO SERVI CE FOR ESTIMATING THE EXPENDITURE FOR EARNING EXEMPTED INC OME. IN THOSE CIRCUMSTANCES, THIS TRIBUNAL IS OF THE CONSIDERED O PINION THAT ESTIMATING THE EXPENDITURE FOR EARNING EXEMPTION IN COME AT 2% OF THE EXEMPTED INCOME WOULD BE REASONABLE. ACCORDING LY, THE ORDERS OF THE LOWER AUTHORITIES ARE SET ASIDE AND THE ASSE SSING OFFICER IS 3 I.T.A. NO.261/MDS/15 DIRECTED TO ESTIMATE THE EXPENDITURE FOR EARNING EX EMPTED INCOME AT 2% OF THE SAME. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED ON 7 TH AUGUST, 2015 AT CHENNAI. SD/- ( ... ) (N.R.S. GANESAN) /JUDICIAL MEMBER /CHENNAI, 1 /DATED, THE 7 TH AUGUST, 2015. KRI. ) ',23 43#, /COPY TO: 1. %& /APPELLANT 2. '(%& /RESPONDENT 3. + 5, () /CIT(A)-III, CHENNAI-34 4. + 5, /CIT, CHENNAI-VIII, CHENNAI-34 5. 3'6 ', /DR 6. 7! 8 /GF.