M/s. Gujarat Urja Vikas Nigam Board., Baroda V. The Dy.CIT.,Circle-1(1), Baroda

ITA 2916/AHD/2012

• Counselvise Citation: 291620514 RSA 2012
• Duration Of Justice: 2 year(s) 5 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 29-06-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 31-12-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: DINESH SINGH SR D R
• Assessee Lawyers: M K PATEL
• Section: 14A; 115JB; 147; 148

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT AND SHRI KUL BHARAT, JUDICIAL MEMBER ./ ././ ./ ITA NO. 2916/AHD/2012 / ASSESSMENT YEAR: 2007-08 GUJARAT URJA VIKAS NIGAM LTD SARDAR PATEL VIDYUT BHAVAN, BARODA PAN : AACCG 2861 L V/S. DCIT, CIRCLE-1(1), BARODA / // / (APPELLANT) ! ! ! ! / // / (RESPONDENT) ASSESSEE(S) BY : SHRI M.K. PATEL, AR REVENUE BY : SHRI DINESH SINGH, SR. DR. '# $ %&'/ // / DATE OF HEARING : 29/06/2015 () $ %&' / // / DATE OF PRONOUNCEMENT: 30/06/2015 *+ *+ *+ *+/ // / O R D E R PER G.D. AGRAWAL, VICE PRESIDENT: THIS IS AN APPEAL FILED BY THE ASSESSEE AND IS DIRE CTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME-TAX (APPEAL S)-I, BARODA DATED 30.10.2012, PERTAINING TO ASSESSMENT YEAR 2007-08. 2. IN THIS APPEAL BY THE ASSESSEE, FOLLOWING GROUND S ARE RAISED :- 1. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) ER RED IN LAW AND IN FACTS HAS CONFIRMED THE RE-OPENING OF ALREADY COMPL ETED ASSESSMENT UNDER SECTION 147 OF THE INCOME TAX ACT, 1961. 2. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) ER RED IN LAW AND ON FACTS HAS CONFIRMED THE ADDITIONS OF RS.12,83,95,00 0/- OUT OF INTEREST EXPENDITURE CONSIDERING THE SAME AS ATTRIBUTABLE TO EXEMPT DIVIDEND INCOME BY INVOKING THE PROVISIONS OF SECTION 14A OF THE INCOME TAX ACT, 1961. ITA NO. 2916/AHD/2012 GUJARAT URJA VIKAS NIGAM LTD VS. DCIT FOR AY 2007-08 2 3. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) ER RED IN LAW AND FACTS HAS CONFIRMED THE ENHANCEMENT OF THE BOOK PRO FIT COMPUTED UNDER SECTION 115JB OF THE INCOME TAX ACT, 1961 BY RS.12, 83,95,000/- ON ACCOUNT OF DISALLOWANCE MADE UNDER SECTION 14A OF T HE I.T. ACT. 4. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) ER RED IN LAW AND IN FACTS HAS DISMISSED THE GROUND RELATING TO THE CHAR GING INTEREST UNDER SECTION 234B, 234C AND 234D OF THE INCOME TAX ACT, 1961 ON TAX LIABILITY COMPUTED UNDER SECTION 115JB OF THE INCOM E TAX ACT, 1961. 5. THE APPELLANT CRAVES LEAVE TO ADD TO, ALTER, DELETE OR MODIFY ANY OF THE GROUNDS OF APPEAL EITHER BEFORE OR AT THE TIME OF H EARING OF THIS APPEAL. 3. AT THE TIME OF HEARING BEFORE US, IT WAS STATED BY THE LD. COUNSEL THAT THE ONLY MAJOR GROUND IN THIS APPEAL IS WITH REGARD TO DISALLOWANCE U/S 14A WHILE COMPUTING THE INCOME UNDER THE NORMAL PROVISI ONS OF THE ACT AS WELL AS FOR THE PURPOSE OF COMPUTATION OF BOOK PROFIT U/ S 115JB. HE STATED THAT IN THE ORIGINAL ASSESSMENT PROCEEDINGS ALSO DISALLO WANCE U/S 14A WAS MADE AND THE MATTER TRAVELLED UP TO ITAT AND THE ITAT IN ITA NO.1874/AHD/2010 SET ASIDE THE ISSUE BACK TO THE FI LE OF THE ASSESSING OFFICER. HE, THEREFORE, SUBMITTED THAT IN THE PRESE NT APPEAL ALSO, WHICH IS ONLY AFTER THE ISSUE OF NOTICE U/S 148 FOR THE SAME YEAR, THE ONLY SUBSTANTIVE ISSUE IS DISALLOWANCE U/S 14A; THEREFORE, THE MATTE R MAY BE RESTORED BACK TO THE FILE OF THE ASSESSING OFFICER WHO IS ALREADY SE IZED IN THE MATTER BY VIRTUE OF EARLIER ORDER OF ITAT FOR THE SAME YEAR. THE LD . DEPARTMENTAL REPRESENTATIVE HAS NO OBJECTION TO THIS SUGGESTION OF THE LD. COUNSEL. WE, THEREFORE, SET ASIDE THE ISSUE OF DISALLOWANCE U/S 14A FOR THE PURPOSE OF NORMAL COMPUTATION AS WELL AS FOR THE PURPOSE OF CO MPUTATION OF BOOK PROFIT AND RESTORE THE SAME BACK TO THE FILE OF THE ASSESSING OFFICER WHO WILL RE-ADJUDICATE THE ISSUE AFRESH AS PER THE DIRECTION OF THE ITAT GIVEN IN ITA NO.1874/AHD/2010. ITA NO. 2916/AHD/2012 GUJARAT URJA VIKAS NIGAM LTD VS. DCIT FOR AY 2007-08 3 4. BEFORE WE PART WITH THE MATTER, WE MAY POINT OUT HERE THAT NO ARGUMENT WAS ADVANCED WITH REGARD TO GROUND NO.1, I .E. AGAINST THE RE- OPENING OF ASSESSMENT; THEREFORE, WE TREAT GROUND N O.1 AS NOT PRESSED AND REJECTED AS SUCH. 5. GROUND NO. 4, WHICH IS AGAINST THE CHARGING OF I NTEREST U/S 234B, 234C AND 234D, WAS ADMITTED TO BE CONSEQUENTIAL AND WE, THEREFORE, DIRECT THE ASSESSING OFFICER TO RE-COMPUTE THE INTEREST U/ S 234B, 234C AND 234D, IF ANY, IN ACCORDANCE WITH LAW AFTER THE RE-COMPUTATIO N OF INCOME. 6. IN THE RESULT, THE ASSESSEES APPEAL IS DEEMED T O BE PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 30 TH JUNE, 2015 AT AHMEDABAD. SD/- SD/- (KUL BHARAT) JUDICIAL MEMBER (G.D. AGRAWAL) VICE-PRESIDENT AHMEDABAD; DATED 30/06/2015 BIJU T., PS *+ $ %, -*,% *+ $ %, -*,% *+ $ %, -*,% *+ $ %, -*,%/ COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. ! / THE RESPONDENT. 3. % '. / CONCERNED CIT 4. '. ( ) / THE CIT(A) 5. ,12 % , , / DR, ITAT, AHMEDABAD 6. 24 5# / GUARD FILE . *+' *+' *+' *+' / BY ORDER, TRUE COPY 6 66 6/ // / 7 7 7 7 ( DY./ASSTT.REGISTRAR) , , , , / ITAT, AHMEDABAD