IIGM Pvt. Ltd., New Delhi V. DCIT, New Delhi

ITA 2626/DEL/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 86879 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 10 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-03-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 02-03-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 02-05-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P DAM KANUNJNA
• Assessee Lawyers: RAJIV TANDON

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C NEW DELHI BEFORE SHRI S.V. MEHROTRA : ACCOUNTANT MEMBER AND SHRI KUL BHARAT : JUDICIAL MEMBER ITA NO. 2626/DEL/2013 A.Y. 2009-10 IIGM PVT. LTD., VS. DCIT CIRCLE 11(1), B-112, OKHLA INDUSTRIAL AREA, NEW DELHI. PHASE-1, NEW DELHI. PAN: AAACI 0110 N ( APPELLANT ) ( RESPONDENT ) APPELLANT BY : RAJIV TANDON CA RESPONDENT BY : SHRI P. DAM KANUNJNA SR. DR DATE OF HEARING : 02-03-2015 DATE OF ORDER : 04-03-2015. O R D E R PER S.V. MEHROTRA, A.M:- THIS APPEAL, PREFERRED BY THE ASSESSEE, IS DIRECTE D AGAINST THE ORDER DATED 12-2-2013, PASSED BY THE CIT(APPEALS)-XV, NE W DELHI IN APPEAL NO. 264/11-12/CIT(A)-XV, RELATING TO A.Y. 2009-10. 2. THE ASSESSEE COMPANY, IN THE RELEVANT ASSESSMENT YEAR, WAS A COMMISSION AGENT FOR INDUSTRIAL SEWING MACHINES FOR VARIOUS COMPANIES IN SINGAPORE AND JAPAN. IT ALSO SOLD INDUSTRIAL SEWING MACHINES, SPARE PARTS, MACHINE OIL ETC. THE AO NOTICED THAT ASSESSEE HAD S HOWN EXEMPT DIVIDEND INCOME OF RS. 14,97,754/- FROM INVESTMENT IN UNIT S OF MUTUAL FUNDS DURING THE YEAR. HE, THEREFORE, MADE A DISALLOWANCE U/S 14 A READ WITH RULE 8D AT 2 RS. 11,97,769/- AS AGAINST THE DISALLOWANCE OF RS. 52,047/- OFFERED BY THE ASSESSEE. 3. LD. CIT(A) PARTLY ALLOWED THE ASSESSEES APPEAL. 4. LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT WHIL E WORKING OUT DISALLOWANCE UNDER RULE 8D(2)(II), THE LD. CIT(A) H AS WRONGLY CONFIRMED THE FINDINGS OF AO IN TAKING THE VALUE OF TOTAL ASS ETS AT RS. 176,818,935.88, AS AGAINST RS. 43,27,92,434.30, AS PER BALANCE-SHE ET OF ASSESSEE, CONTAINED AT PAGE 21 OF THE PB (RS. 65,738,804.00 + 10,224,96 0.46 + 356,828,669.84), BEFORE REDUCING CURRENT LIABILITIES. AFTER HEARING BOTH THE PARTIES, WE RESTORE THIS MATTER TO THE FILE OF AO TO VERIFY THE ASSESSE ES CONTENTION ON RECORD AND MAKE THE NECESSARY RECTIFICATION IN THE COMPUTATION OF DISALLOWANCE U/S 14A. 5. IN THE RESULT, ASSESSEE'S APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON 04-03-2015. SD/- SD/- (KUL BHARAT ) ( S.V. MEHROTRA ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 04-03-2015. MP: C OPY TO : 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR