Maharashtra Scooters Limited, Pune V. Assistant Commissioner of Income-tax, Circle - 9, Pune

ITA 3059/PUN/2017

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 2163 (ITAT-PUNE)
• Duration Of Justice: 10 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-11-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 14-11-2018
• Assessment Year: 2012-2013
• Appeal Filed On: 22-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: IS ARISING OUT OF DATED PASSED
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT . / ITA NO. 3059/PUN/2017 / ASSESSMENT YEAR : 2012-13 MAHARASHTRA SCOOTERS LIMITED, C/O. BALAJI AUTO LTD., AKURDI, PUNE 411035 PAN : AABCM1799E VS. ACIT, CIRCLE-9, PUNE (APPELLANT) (RESPONDENT) / ORDER PER R.S.SYAL, VP : THIS APPEAL BY THE ASSESSEE IS ARISING OUT OF ORDER DATED 04-09-2017 PASSED BY THE CIT(A) - 6, PUNE IN RELATION TO TH E A.Y. 2012-13. 2. THE ONLY ISSUE RAISED BY THE ASSESSEE IN ITS APPEAL IS AGAINST THE CONFIRMATION OF DISALLOWANCE AMOUNTING TO RS.52,86,109/- U/S. 14A OF THE INCOME-TAX ACT, 1961 (HEREINAFTER ALSO CALLED `THE ACT) READ WITH RULE 8D OF THE INCOME TAX RULES, 1962. APPELLANT BY SHRI KISHOR PHADKE RESPONDENT BY SHRI RAJESH GAWLI DATE OF HEARING 14-11-2018 DATE OF PRONOUNCEMENT 15-11-2018 ITA NO.3059/PUN/2017 MAHARASHTRA SCOOTERS LTD., 2 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT THE ASSESS EE IS ENGAGED IN THE BUSINESS OF MANUFACTURE AND SALE OF SCOO TER AND PARTS. AN EXEMPT DIVIDEND INCOME OF RS.41.06 CRORE AND ODD WAS EARNED DURING THE YEAR. IN THE ABSENCE OF AN Y DISALLOWANCE OFFERED BY THE ASSESSEE U/S.14A OF THE ACT, THE AO INVOKED THE PROVISIONS OF RULE 8D AND WORKED OUT THE DISALLOWANCE AMOUNTING TO RS.52,86,109/-, BEING, PERCE NT OF AVERAGE VALUE OF INVESTMENT UNDER RULE 8D(2)(III). TH E LD. CIT(A) ECHOED THE ASSESSMENT ORDER ON THIS POINT. 4. HAVING HEARD BOTH THE SIDES AND GONE THROUGH THE RELEVANT MATERIAL ON RECORD, IT IS OBSERVED THAT SIMILAR ISSUE WAS RAISED IN THE ASSESSEES APPEAL FOR IMMEDIATELY PRECE DING FOUR ASSESSMENT YEARS NAMELY, 2008-09 TO 2011-12. VIDE ITS ORDER DATED 12-10-2018, THE TRIBUNAL IN ITA NO.1321/PUN/2016 AND OTHERS HAS RESTORED THIS MATTER TO THE FILE OF THE AO WITH CERTAIN DIRECTIONS CONTAINED IN PARA 10 OF THE ORDER. A COPY OF THE SAID ORDER HAS BEEN PLACED O N RECORD. IN THE ABSENCE OF LD. DR POINTING OUT ANY DISTINGUISHING FEATURES FOR THE YEAR UNDER CONSIDERATION VIS-A-VIS THE PRECEDING YEARS, RESPECTFULLY FOLLOWING THE PRECEDENT, I SET - ASIDE THE IMPUGNED ORDER AND REMIT THE MATTER TO THE FILE OF AO FOR COMPLYING WITH THE DIRECTIONS GIVEN BY THE TRIBUNAL ITA NO.3059/PUN/2017 MAHARASHTRA SCOOTERS LTD., 3 FOR THE EARLIER FOUR ASSESSMENT YEARS AND THEN DECIDING THE ISSUE FOR THE YEAR UNDER CONSIDERATION ACCORDINGLY. 5. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 15 TH NOVEMBER, 2018. SD/- (R.S.SYAL) / VICE PRESIDENT PUNE; DATED : 15 TH NOVEMBER, 2018 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. ( ) / THE CIT (APPEALS)-6, PUNE 4. / THE PR. CIT-5, PUNE 5. , , SMC / DR SMC, ITAT, PUNE; 6. / GUARD FILE. // TRUE COPY / / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE ITA NO.3059/PUN/2017 MAHARASHTRA SCOOTERS LTD., 4 DATE 1. DRAFT DICTATED ON 14-11-18 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 15.11.18 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER - 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. - 5. APPROVED DRAFT COMES TO THE SR.PS/PS 6. KEPT FOR PRONOUNCEMENT ON 7. FILE SENT TO THE BENCH CLERK 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER. *