PULKIT SEKHSARIA HUF, MUMBAI V. ITO WD 12(3)(4), MUMBAI

ITA 2960/MUM/2013

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 70719 (ITAT-MUMBAI)
• Duration Of Justice: 4 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-08-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 17-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ROOPAK KUMAR
• Assessee Lawyers: MOHANLAL BHANDARI
• Section: 14A

Judgement Text

. , IN THE INCOME TAX APPELLATE TRIBUNAL SMC , BENCH MUMBAI , BEFORE SHRI R. K. GUPTA , JM ITA NO. 29 60 / MUM/ 20 1 3 ( ASSESSMEN T YEAR : 200 9 - 10 ) PULKIT SEKHSARIA HUF, 11 - A, MITTAL CHAMBERS, NARIMAN POINT, MUMBAI - 400 021 VS. ITO WARD 12(3)( 4 ), MUMBAI - 20 PAN/GIR NO. : A A IHP 5836 K ( APPELLANT ) .. ( RESPONDENT ) / ASSESSEE BY : SHRI MOHANLAL BHANDARI /REVENUE BY : SHRI ROOPAK KUMAR DATE OF HEARING : 19 TH AUGUST , 201 3 DATE OF PRONOUNCEMENT : 19 TH AUGUST , 2013 O R D E R TH E ASSESSEE HAS PREFERRED THIS APPEAL AGAINST THE ORDER OF LEANED CIT(A) - 23, MUMBAI RELA TING TO THE ASSESSMENT YEAR S 200 9 - 10 . 2 . GROUND NO. 3 WAS NOT PRESSED, THEREFORE, THE SAME IS DISMISSED AS NOT PRESSED. 3 . GROUNDS NO. 1 & 2 ARE AGAINST UPHOLDING THE DISALLOWANCE OF RS. 31,027/ - AT THE RATE OF 0.5% OF AVERAGE INVESTMENT UNDER SECTION 14A READ WITH RULE 8D(2)(III). 4. DU RING THE ASSESSMENT PROCEEDINGS, THE AO ASKED THE ASSESSEE AS TO WHY THE DISALLOWANCE UNDER SECTION 14A READ WITH RULE 8D SHOULD NOT BE MADE AS THE ASSESSEE HAS SHOWN DIVIDEND INCOME OF RS. 5,27,444/ - . IT WAS SUBMITTED THAT NO EXPENSES HAVE CLAIMED, ITA NO. 29 60 /20 1 3 2 THEREFORE, NO DISALLOWANCE CAN BE MADE. HOWEVER, THE AO WAS NOT SATISFIED AS IN HIS VIEW S O ME EXPENSES HA VE TO BE DIS ALLOWED IN VIEW OF THE PROVISION OF S ECTION 14A. ACCORDINGLY, HE DISALLOWED A SUM OF RS. 31,027/ - 5 . LEARNED CIT(A) ALSO CONFIRMED THE ACTION OF THE AO. 6 . AFTER CONSIDERING THE SUBMISSION, I FIND THAT THE ASSESSEE DESERVES TO SUCCEED ON THE ISSUE INVOLVED. I NOTED THAT NO EXPENSE HA S BEEN CL AIMED BY THE ASSESSEE IN ITS PROFIT AND LOSS ACCOUNT. ONCE THERE IS NO EXPENSE HAS BEEN CLAIMED, THERE IS NO QUESTION OF ANY DISALLOWANCE. THE PROVISION OF SECTION 14A IS APPLICABLE WHERE CERTAIN INCOME EARNED BY THE ASSESSEE IS EXEMPT, HOWEVER, THERE SHOU LD BE CERTAIN EXPENSES CLAIMED. IN THE PRESENT CASE, NO EXPENSE HAS BEEN CLAIMED. THEREFORE, THERE IS NO QUESTION OF ANY DISALLOWANCE OF EXPENDITURE IN VIEW OF THE SECTION 14A READ WITH RULE 8D OF THE IT RULES. ACCORDINGLY, I DELETE THE DISALLOWANCE MADE AND CONFIRMED BY THE LOWER AUTHORITIES. 6 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 19 TH DAY OF AUG .2013 201 3 SD/ - ( ) ( R.K.GUPTA ) / JUDICIAL MEMBER MUMBAI ; DATED : 19/08/ 2013 /PKM , PS ITA NO. 29 60 /20 1 3 3 COPY OF TH E ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / THE CIT(A) , MUMBAI. 4. / CIT 5. / DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY// / BY ORDER, ( ASSTT. REGISTRAR) / ITAT, MUMBAI