M/s J V Holdings Pvt Ltd , Bangalore V. The Assistant Commissioner of Income Tax (OSD) Ward-4(1)(1), Bangalore

ITA 2780/BANG/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 3537 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 1 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-11-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 04-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RENUGA J
• Assessee Lawyers: G SITHARAMAN
• Keywords: Rule 8D; Set aside
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SHRI B.R BASKARAN , ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER ITA NO.2780/BANG/2018 ASSESSMENT YEAR : 2014-15 J.V HOLDINGS PVT. LTD., 1 ST FLOOR, EMBASSY POINT, 150 INFANTRY ROAD, BENGALURU-560 001. PAN AABCJ 9763 F VS. THE ASST. COMMISSIONER OF INCOME-TAX, WARD-4(1)(1), BENGALURU. APPELLANT RESPONDENT APPELLANT BY : SHRI G SITHARAMAN, C.A RESPONDENT BY : SMT. RENUGA, J.C.I.T (DR) DATE OF HEARING : 27.11.2019 DATE OF PRONOUNCEMENT : 29.11.2019 O R D E R PER B.R BASKARAN, ACCOUNTANT MEMBER : THE APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINS T THE ORDER DATED 21/8/2018 PASSED BY LF CIT(A)-12, BENGALURU D ATED 21/8/2018 AND IT RELATES TO ASST. YEAR 2014-15. 2. THE ASSESSEE IS AGGRIEVED BY THE DECISION OF LD CIT(A) IN CONFIRMING THE DISALLOWANCE MADE BY THE AO U/S 14 A OF THE ACT. 3. WE HEARD THE PARTIES AND PERUSED THE RECORD. AT THE TIME OF HEARING THE LD AR PLACED HIS RELIANCE ON THE DECISI ON RENDERED BY SPECIAL BENCH OF ITAT IN THE CASE OF ACIT VS. VIRE ET INVESTMENT ITA NO.2780 /BANG/2018 PAGE 2 OF 4 PVT. LTD. (165 ITD 0027) AND SUBMITTED THAT FOR THE PURPOSE OF COMPUTING DISALLOWANCE U/S 14A R.W.R 8D(2)(III) OF THE ACT, THE INVESTMENTS WHICH HAS ACTUALLY YIELDED DIVIDEND INC OME SHOULD BE CONSIDERED. THE LD AR SUBMITTED THAT THE AO HAS CO NSIDERED ALL THE INVESTMENTS FOR COMPUTING THE DISALLOWANCE U/S RUL E 8D(2)(III) OF THE IT RULES. ACCORDINGLY HE PRAYED THAT THE AO M AY BE DIRECTED TO FOLLOW THE DECISION RENDERED BY THE SPECIAL BENCH IN THE CASE OF VIREET INVESTMENT PVT. LTD. (SUPRA) 4. WE HEARD LD DR AND PERUSED THE RECORD. WE FIND MERIT IN THE PRAYER OF THE ASSESSEE AS THE SAME IS SUPPORTED BY THE DECISION RENDERED BY THE SPECIAL BENCH OF ITAT IN THE CASE V IREET INVESTMENT PVT. LTD., (SUPRA). ACCORDINGLY WE SET ASIDE THE O RDER PASSED BY THE LD CIT(A) AND DIRECT THE AO TO COMPUTE THE DISALLOW ANCE UNDER RULE 8D(2)(III) BY FOLLOWING THE DECISION RENDERED BY S PECIAL BENCH REFERRED ABOVE. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE I S ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 29 TH NOVEMBER, 2019. SD/ - (BEENA PILLAI) JUDICIAL MEMBER SD/ - (B.R BASKARAN) ACCOUNTANT MEMBER BANGALORE, DATED, 29 TH NOVEMBER, 2019. / VMS / ITA NO.2780 /BANG/2018 PAGE 3 OF 4 COPY TO: 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASST. REGISTRAR, ITAT, BANGALORE. ITA NO.2780 /BANG/2018 PAGE 4 OF 4 1. DATE OF DICTATION 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER . 3. DATE ON WHICH THE APPROVED DRAFT COMES TO SR.P.S .. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER .. 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE S R. P.S. .. 6. DATE OF UPLOADING THE ORDER ON WEBSITE.. 7. IF NOT UPLOADED, FURNISH THE REASON FOR DOING SO .. 8. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK .. 9. DICTATION NOTE ENCLOSED DATE ON WHICH ORDER GOES FOR XEROX & ENDORSEMENT 10. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 11. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER . 12. THE DATE ON WHICH THE FILE GOES TO DISPATCH SEC TION FOR DISPATCH OF THE TRIBUNAL ORDER . 13. DATE OF DESPATCH OF ORDER. .. 14. DICTATION NOTE ENCLOSED