Pramod B Ranka, Pune V. Deputy Commissioner of Income-tax, Circle - 5, Pune

ITA 2712/PUN/2017

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 0486 (ITAT-PUNE)
• Duration Of Justice: 4 year(s) 6 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-06-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 19-11-2017
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Assessee Lawyers: KISORE B PHADKE
• Keywords: Proportionate interest; Rule 8D
• Section: 143(3); 14A; 13

Judgement Text

आयकर अपीऱीय अधिकरण “ए” न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, PUNE BEFORE SHRI S.S.GODARA, JM AND SHRI DR. DIPAK P. RIPOTE, AM आयकर अपीऱ सं. / ITA No.2712/PUN/2017 ननधधारण वषा / Assessment Year : 2013-14 Shri Pramod B. Ranka, 19A/3B C Wing, 2 nd Floor, K K Market, Bibwewadi, Pune- 411 037. PAN : AASPR4502N .......अपऩलधथी / Appellant बनधम / V/s. DCIT, Circle-5, Pune ......प्रत्यथी / Respondent Assessee by : Shri Kisore B Phadke Revenue by : Shri S. P. Walimbe सपनवधई की तधरऩख / Date of Hearing : 12.05.2022 घोषणध की तधरऩख / Date of Pronouncement : 08.06.2022 आदेश / ORDER PER S. S. GODARA, JM : 1. This assessee’s appeal for A.Y. 2013-14 is directed against the CIT(A) - 4, Pune’s order dated 04/07/2017 passed in case No. PN/CIT(A) -4/DCIT, Circle-5, Pune/143/2016-17/456 involving proceeding u/s. 143(3) of the Income Tax Act, 1961 ; in short “the Act”. Heard both the parties. Case file perused. 2 ITA No.2712/PUN/2017 Shri Pramod B. Ranka, 2. Coming to the assessee’s sole substantive grievance both the lower authorities erred in law and on facts in invoking section 14A r.w. Rule 8D disallowance of proportionate interest and administrative expenditure heads; totaling to Rs.19,51,288/-, learned counsel’s sole argument before us is that this tax-payer’s non bearing funds are much more than corresponding investments made for deriving exempt income. He quotes CIT Vs Reliance Utilities & Power Ltd. 313 ITR 340 that necessary presumption in such an instances is of investment of non interest bearing funds only. Mr.Phadke further sought to highlight the fact hon’ble apex court’s latest decision in (2021) 13 taxmann.com 178 (SC) South Indian Bank Vs. CIT has also reiterated the very legal position. 3. The Revenue placed strong reliance of both the lower authorities action making the impugned disallowance. 4. We have given our thoughtful consideration to the forgoing rival pleadings and find force in assessee’s stand in principle in view of the settled legal position as on date (supra) . The facts also remains that the Assessing Officer needs to compute the impugned proportionate interest disallowance afresh after carrying out the factual verification of assessee’s interest free as well as interest bearing funds viz-a-viz the investments made herein. Coupled with this there is no indication that the learned lower authorities 3 ITA No.2712/PUN/2017 Shri Pramod B. Ranka, have made administrative expenses disallowance going by the investments yielding exempt income only in light of ACIT Vs. Vineet Investments (P) Ltd 165 ITD 27 (Delhi) (SB) and (2013) 144 ITD 141(Kolkata) REI Agro Ltd. Vs. DCIT. We thus restore both these issues qua the impugned u/s. 14A rule 8D disallowance; back to the Assessing Officer in very terms. Ordered accordingly. 5. This assessee’s appeal is allowed for statistical purposes in above terms. Order pronounced in the Open Court on this 8 th day of June, 2022. Sd/- Sd/- (DR.DIPAK P.RIPOTE) (S.S. GODARA) लेखध सदस्य/ ACCOUNTANT MEMBER न्यधनयक सदस्य/JUDICIAL MEMBER पपणे / Pune; ददनधांक / Dated : 8 th June, 2022. Ashwini आदेश की प्रनतनलनप अग्रेनषत / Copy of the Order forwarded to : 1. अपऩलधथी / The Appellant. 2. प्रत्यथी / The Respondent. 3. The CIT(A)-4, Pune. 4. The Pr.CIT-3,Pune. 5. नवभधगऩय प्रनतनननध, आयकर अपऩलऩय अनधकरण, “ए” बेंच, पपणे / DR, ITAT, “A” Bench, Pune. 6. गधर्ा फ़धइल / Guard File. आदेशधनपसधर / BY ORDER, // True Copy // Senior Private Secretary आयकर अपऩलऩय अनधकरण, पपणे / ITAT, Pune. 4 ITA No.2712/PUN/2017 Shri Pramod B. Ranka, S.No. Details Date Initials 1 Draft dictated on 12.05.2022 2 Draft placed before author 31.05.2022 3 Draft proposed & placed before the Second Member 4 Draft discussed/approved by Second Member 5 Approved Draft comes to the Sr. PS/PS 6 Kept for pronouncement on 7 Date of uploading of Order 8 File sent to Bench Clerk 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R. 11 Date of Dispatch of order