The DCIT, Circle-4, Ahmedabad V. M/s. Gujarat State Investments Ltd., Ahmedabad

ITA 2779/AHD/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 8390 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 6 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-04-2018
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Appeal Filed On: 05-10-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH (BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER & SHRI S. S. GODARA, JUDICIAL MEMBER) ITA. NO: 2779/AHD/2015 (ASSESSMENT YEAR: 2012-13) THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE- 2(1)(1), AHMEDABAD V/S M/S. GUJARAT STATE INVESTMENT LTD., 6 TH FLOOR, H.K. HOUSE, ASHRAM ROAD, AHMEDABAD-380009 (APPELLANT) (RESPONDENT) PAN: AABCG 4649M APPELLANT BY : SHRI MUDIT NAGPAL, SR. D. R. RESPONDENT BY : SMT. ARTI SHAH ( )/ ORDER DATE OF HEARING : 13 -04-201 8 DATE OF PRONOUNCEMENT : 17 -04-2018 PER N.K. BILLAIYA, ACCOUNTANT MEMBER 1. THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE LD. CIT(A)-2, AHMEDABAD DATED 23.07.2015 PERTAINING TO A.Y. 2012- 13. ITA NO. 2779 -AHD-2015 . A.Y. 2012-1 3 2 2. THE ONLY GRIEVANCE OF THE REVENUE IS THAT THE LD. C IT(A) ERRED IN RESTRICTING THE DISALLOWANCE MADE U/S. 14A OF THE ACT TO RS. 5,89,9 95/- AGAINST RS. 54,09,667/-. 3. BRIEFLY STATED THE FACTS OF THE CASE ARE DURING THE COURSE OF THE SCRUTINY ASSESSMENT PROCEEDINGS, THE A.O. NOTICED THAT THE A SSESSEE HAS CLAIMED DIVIDEND INCOME AT RS. 76.07 CRORES AS EXEMPT FROM TAX. THE A.O. WAS OF THE FIRM BELIEF THAT DISALLOWANCE U/S. 14A R.W. RULE 8D IS IMPERATIVE AND ACCORDINGLY PROCEEDED TO COMPUTE THE DISALLOWANCE A T RS. 54.09 LACS. 4. ASSESSEE CARRIED THE MATTER BEFORE THE LD. CIT(A) B UT WITHOUT ANY SUCCESS. THE LD. CIT(A) DIRECTED THE A.O. TO REDUCE THE DISALLO WANCE BY THE SUO MOTO DISALLOWANCE MADE BY THE ASSESSEE IN ITS RETURN OF INCOME. 5. BEFORE US, THE LD. D.R. BROUGHT TO OUR NOTICE THAT IN THE EARLIER ASSESSMENT YEARS, THE TRIBUNAL HAS CONFIRMED THE DISALLOWANCES MADE U/S. 14A OF THE ACT. THE LD. COUNSEL FAIRLY CONCEDED TO THIS. 6. WE HAVE GIVEN A CAREFUL CONSIDERATION TO THE ORDERS OF THE AUTHORITIES BELOW. WE FIND FORCE IN THE CONTENTION OF THE LD. D.R. THE TRIBUNAL IN EARLIER ASSESSMENT YEARS IN ITA NOS. 276 TO 279/AHD/2014 & 2418/AHD/2014 IN A.YS. 2004-05, 2006-07, 2009-10, 2010-11 & 2011-12 HAS CONFIRMED THE DISALLOWANCES MADE U/S. 14A OF THE ACT. 7. RESPECTFULLY FOLLOWING THE FINDINGS OF THE CO-ORDIN ATE BENCH, THE DISALLOWANCES MADE BY THE A.O. ARE CONFIRMED. HOWEVER, THE SUO MO TO DISALLOWANCE MADE BY THE ASSESSEE SHOULD BE DEDUCTED WHILE GIVING TH E APPEAL EFFECT. ITA NO. 2779 -AHD-2015 . A.Y. 2012-1 3 3 8. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS A LLOWED. ORDER PRONOUNCED IN OPEN COURT ON 17 - 04- 20 18 SD/- SD/- (S. S. GODARA) (N. K. BILLAIYA) JUDICIAL MEMBER TRUE COPY ACCOUNTANT MEMBER AHMEDABAD: DATED 17 /04/2018 RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AHME DABAD