Appeal Details
Counselvise Citation
289419914 RSA 2010
Assessee PAN
Bench
Appeal Number
Duration Of Justice
1 year(s) 1 month(s) 1 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
13-05-2011
Appeal Filed By
Assessee
Order Result
Partly Allowed
Bench Allotted
A
Assessment Year
2002-2003
Appeal Filed On
12-04-2010
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH A,MUMBAI BEFORE SHRI R.S. SYAL (AM) & SHRI R.S. PADVEKAR (JM ) I.T.A.NO.2894/MUM/2010 (A.Y. 2002-03) L.I.C. HOUSING FINANCE LTD., BOMBAY LIFE BLDG., 2 ND FLOOR, 45/47, VEER NARIMAN OAD, MUMBAI-400 001. PAN:AAACL1799C VS. DY.COMMR. OF INCOME-TAX-2(2), AAYKAR BHAVAN, M.K. ROAD, MUMBAI-400 020. APPELLANT RESPONDENT APPELLANT BY SHRI SUNIL BHANDARI. RESPONDENT BY SHRI R AJEEV AGARWAL. O R D E R PER R.S. SYAL, AM : THIS APPEAL FILED BY THE ASSESSEE ARISES OUT OF T HE ORDER PASSED BY THE CIT(A)-5, MUMBAI, ON 08-02-2010 IN RELATION TO THE ASSTT. YEAR 2002-03. 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST THE DISALLOWANCE U/S.14A OF THE ACT. BRIEFLY STATED, THE FACTS OF THE CASE A RE THAT THE ASSESSEE IS PROMOTED BY LIC OF INDIA AND IS ENGAGED MAINLY IN THE BUSINE SS OF PROVIDING LONG-TERM HOUSING FINANCE. THE ASSESSEE CLAIMED EXEMPTION IN RESPECT OF DIVIDEND AND INTEREST INCOME FROM TAX FREE BONDS U/S. 10(33) AND 10(15) OF THE ACT AMOUNTING TO RS.19,22,35,206/-. THE AO WORKED OUT THE AMOUNT OF INTEREST EXPENDITURE DISALLOWABLE AT RS.14,00,22,015/- BY INVOKING THE P ROVISIONS OF SEC. 14 OF THE ACT. ITA NO.2894/M/10 LIC HSG.FINANCE LTD.. 2 3. THE CIT(A) HELD THAT ALL DIRECT AND INDIRECT EXP ENSES HAVE TO BE DISALLOWED. ACCORDINGLY, HE DIRECTED THE AO TO WORK OUT THE SAM E ON THE BASIS OF FIGURES AVAILABLE IN THE BALANCE-SHEET AND PROFIT & LOSS AC COUNT AND THE AMOUNT SO WORKED OUT IN TERMS OF RULE 8D WOULD SUBSTITUTE THE AMOUNT DISALLOWED AS PER THE ASSESSMENT ORDER. THE ASSESSEE IS NOW IN APPEAL BEFORE US AGAINST THE DECISION OF THE CIT(A). 4. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PERU SING THE RELEVANT MATERIAL ON RECORD, WE FIND THAT THE ISSUE RAISED IN THIS AP PEAL IS NO MORE RES INTEGRA IN VIEW OF THE JUDGMENT OF THE HONBLE JURISDICTIONAL HIGH COURT IN GODREJ & BOYCE MFG. LTD. VS. DCIT (2010) 328 ITR 81 (BOM), IN WHI CH IT HAS BEEN HELD THAT DISALLOWANCE IS CALLED FOR U/S.14A IN SUCH CIRCUMST ANCES. HOWEVER, THE MANNER OF COMPUTATION OF SUCH DISALLOWANCE HAS BEEN RESTORED TO THE FILE OF AO FOR MAKING ON SOME REASONABLE BASIS. IT HAS FURTHER BEEN HELD IN THIS CASE THE PROVISIONS OF RULE 8D ARE NOT APPLICABLE AS THESE ARE PROSPECTIVE . RESPECTFULLY FOLLOWING THE PRECEDENT, WE SET ASIDE THE IMPUGNED ORDER AND DIRE CT THE AO TO COMPUTE DISALLOWANCE U/S.14A IN ACCORDANCE WITH THE RATIO L AID DOWN BY THE HONBLE JURISDICTIONAL HIGH COURT IN THE AFORENOTED CASE OF GODREJ & BOYCE LTD. (SUPRA). 5. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATIST ICAL PURPOSES. ORDER PRONOUNCED ON THE 13TH DAY OF MAY, 2011. SD/- SD/- (R.S. PADVEKAR) (R.S. SYAL) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI: 13TH MAY , 20110. NG: ITA NO.2894/M/10 LIC HSG.FINANCE LTD.. 3 COPY TO : 1.ASSESSEE. 2.DEPARTMENT. 3 CIT(A)-5,MUMBAI. 4 CIT,CITY-2,MUMBAI. 5.DR,A BENCH,MUMBAI. 6.MASTER FILE. (TRUE COPY) BY ORDER, ASST.REGISTRAR, ITAT, MUMBAI. ITA NO.2894/M/10 LIC HSG.FINANCE LTD.. 4 DETAILS DATE INITIALS DESIGN ATION 1. DRAFT DICTATED ON 09-05-11 SR.PS/ 2. DRAFT PLACED BEFORE AUTHOR 10-05-11 SR.PS/ 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS/ 6. KEPT FOR PRONOUNCEMENT ON SR.PS/ 7. FILE SENT TO THE BENCH CLERK SR.PS/ 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 9. DATE ON WHICH FILE GOES TO THE AR 10. DATE OF DISPATCH OF ORDER *
