GAURI SHRIYA, MUMBAI V. ITO 12(3)(1), MUMBAI

ITA 3161/MUM/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 79483 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 3 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-07-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2009-2010
• Appeal Filed On: 25-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S SENT H IL KUMARAN
• Keywords: Earning of tax free income
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH G, MUMBAI BEFORE SHRI R.C SHARMA, ACCOUNTANT MEMBER AND DR. S.T.M. PAVALAN, JUDICIAL MEMBER ITA NO. 3161/MUM/2013 ASSESSMENT YEAR: 2009-10 SMT. GAURI SHRIYA 714, RAHEJA CHAMBERS, 213, NARIMAN POINT, MUMBAI 400 021 VS. ITO-12(3)(1) MUMBAI (APPELLANT) (RESPONDENT) PERMANENT ACCOUNT NO. :- AAYPS 4600 C APPELLANT BY : SHRI SUNIL NAHTA RESPONDENT BY : SHRI S. SENTHIL KUMARAN DATE OF HEARING : 30.07.2014 DATE OF PRONOUNCEMENT : 30.07.2014 O R D E R PER DR. S.T.M. PAVALAN, JM: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF THE LD.CIT(A) -23, MUMBAI DATED 04.02.2013 CONFIRMING T HE DISALLOWANCE OF RS.3,04,007/- MADE BY THE AO U/S 14A OF THE INCOME TAX ACT FOR THE ASSESSMENT YEAR 2009-10. 2. THE RELEVANT FACTS ARE THAT DURING THE YEAR CONS IDERATION, THE ASSESSEE HAD EARNED DIVIDEND INCOME ON SHARES AT RS.6,48,668/- A ND FROM UNITS AT RS.6,99,357/- WHICH WERE CLAIMED AS EXEMPT. IN THE ASSESSMENT FRA MED, THE AO HAD INVOKED SECTION 14A READ WITH RULE 8D AND MADE THE IMPUGNED DISALLOWANCE, WHICH WAS BEEN CONFIRMED BY THE LD.CIT(A). AGGRIEVED BY THE I MPUGNED ORDER, THE ASSESSEE IS IN APPEAL BEFORE US. 3. HAVING HEARD BOTH THE SIDES AND PERUSED THE MATE RIAL ON RECORD, IT IS PERTINENT TO MENTION THAT THE ASSESSEE HAS RETURNED INCOME UNDER THE HEADS SALARY, CAPITAL GAIN AND INCOME FROM OTHER SOURCES WHICH HA VE BEEN OFFERED FOR TAX ON GROSS BASIS WITHOUT CLAIMING ANY DEDUCTION OF EXPENSES IN CURRED FOR EARNING ANY OF THE ITA NO. 3161/MUM/2013 SMT. GAURI SHRIYA ASSESSMENT YEAR: 2009-10 2 SAID INCOME. IN THIS CONNECTION, IT IS RELEVANT TO MENTION THAT THE OPERATIVE PART OF SECTION 14A READS AS FOR THE PURPOSE OF COMPUTING THE TOTAL INCOME UNDER THIS CHAPTER NO DEDUCTION SHALL BE ALLOWED IN RESPECT OF EXPENDITURE INCURRED BY THE ASSESSEE IN RELATION TO INCOME WHICH DOES NOT FORM PART OF THE TOTAL INCOME UNDER THIS ACT. THIS INDICATES THAT DISALLOWANCE UNDER T HIS SECTION IS LEGALLY TENABLE ONLY WHEN THE ASSESSEE HAS CLAIMED SOME DEDUCTION IN RES PECT OF THE EXPENSES INCURRED BY THE ASSESSEE FOR EARNING THE OTHER INCOME WHICH MAY INCLUDE THE EXPENDITURE FOR EARNING THE EXEMPT INCOME. WHEN THE ASSESSEE HAS NO T CLAIMED ANY DEDUCTION OF EXPENDITURE IN RESPECT OF EARNING ANY INCOME UNDER THE OTHER HEADS OF INCOME, THE AUTHORITIES BELOW ARE NOT JUSTIFIED IN MAKING THE D ISALLOWANCE BY INVOKING SECTION 14A. IN VIEW OF THAT MATTER, THE IMPUGNED DISALLOWA NCE MADE/CONFIRMED BY THE AO/ LD.CIT(A) STANDS DELETED. 4. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH DAY OF JULY, 2014. SD/- SD/- (R.C. SHARMA) (DR. S.T.M. PAVALAN) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 30.07.2014 *SRIVASTAVA COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT(A) CONCERNED, MUMBAI THE DR G BENCH //TRUE COPY// BY ORDER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.