Paras Harish Shah, Ahmedabad V. Income Tax Officer, Ward-5(2)(3), Ahmedabad

ITA 3266/AHD/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 7907 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 1 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-12-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Appeal Filed On: 20-11-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL

Judgement Text

, .. , IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD , , BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ./ I.T.A. NO.3266/AHD/2015 ( / ASSESSMENT YEAR : 2012-13) PARAS HARISH SHAH C/O. M/S.MADHUSUDAN C.MASHRUWALA & CO. CAS AKIK, 301-303 OPP. LIONS HALL MITHAKHALI AHMEDBAD-380 006 / VS. THE INCOME TAX OFFICER WARD-5(2)(3) AHMEDABAD # ./ ./ PAN/GIR NO. : AFDPS 6093 K ( #% / APPELLANT ) .. ( &#% / RESPONDENT ) #%' / APPELLANT BY : SHRI SOHAM U MASHRUWALA, AR &#%(' / RESPONDENT BY : SHRI JAMES KURIAN, SR.DR )*(+ / DATE OF HEARING 20/12/2017 ,-./(+ / DATE OF PRONOUNCEMENT 22/12/2017 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTA NCE OF THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF I NCOME TAX(APPEALS), AHMEDABAD-5 [CIT(A) IN SHORT] DATED 10/09/2015 ARISING IN THE ASSESSMENT ORDER PASSED UNDER S.143(3) OF THE INCOM E TAX ACT, 1961 ITA NO.3266/AHD /2015 PARAS HARISH SHAH VS. ITO ASST.YEAR 2012-13 - 2 - (HEREINAFTER REFERRED TO AS 'THE ACT') DATED 18/02 /2015 RELEVANT TO ASSESSMENT YEAR (AY) 2012-13. 2. THE SOLE GRIEVANCE OF THE ASSESSEE IS THAT THE REVENUE HAS DISALLOWED INTEREST EXPENSES AMOUNTING TO RS.3,05,7 31/- ATTRIBUTABLE TO EARNING OF DIVIDEND INCOME OF RS.7,338/-. 3. WITH THE ASSISTANCE OF THE LD.AR FOR THE ASSESS EE, WE FIND THAT THE ASSESSEE HAS EARNED DIVIDEND INCOME OF RS.7,338/- F ROM INVESTMENT ACTIVITIES CARRIED OUT BY HIM WHICH IS CLAIMED AS E XEMPT FROM INCOME TAX ACT. THE ASSESSING OFFICER (AO) HAS DISALLOWE D THE INTEREST EXPENDITURE TO THE TUNE OF RS.3,05,731/- AGAINST TH E AFORESAID EXPENDITURE. WE FIND MERIT IN THE LIMITED PLEA OF THE ASSESSEE THAT THE EXPENDITURE SHOULD BE RESTRICTED TO THE EXTENT OF D IVIDEND INCOME IN VIEW OF THE DECISION OF THE COORDINATE BENCH OF TRIBUNAL DAGA GLOBAL CHEMICALS LTD. IN ITA NO.5592/MUM/2012 ORDER DATED 01/01/2015. WE ALSO NOTICE AT THIS STAGE A DECISION OF THE HONBLE DELHI HIGH COURT IN THE CASE OF CIT VS. TAIKISHA ENGINEERING (I) LTD. 370 ITR 338 WHERE THE HONBLE DELHI HIGH COURT IN SIMILAR FACTS OBSERVED THAT THE DISALLOWANCE OF EXPENDITURE SHOULD NOT ORDINARILY EXCEED DIVIDEN D INCOME. IN THE LIGHT OF FORGOING DISCUSSION, WE DIRECT THE AO TO RESTRIC T THE DISALLOWANCE OF INTEREST EXPENDITURE TO THE EXTENT OF DIVIDEND INCO ME ACTUALLY EARNED. ITA NO.3266/AHD /2015 PARAS HARISH SHAH VS. ITO ASST.YEAR 2012-13 - 3 - 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. THIS ORDER PRONOUNCED IN OPEN COURT ON 22 / 1 2 /201 7 SD/- SD/- () ( ) (RAJPAL YADAV) ( PRADIP KUMAR KEDIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED 22/ 12 /2017 3..),.)../ T.C. NAIR, SR. PS !'#$%&%# / COPY OF THE ORDER FORWARDED TO : 1. #% / THE APPELLANT 2. &#% / THE RESPONDENT. 3. 456+ 7+ / CONCERNED CIT 4. 7+ ( ) / THE CIT(A), AHMEDABAD-5 5. 89:+)56 , 56/ , 4 / DR, ITAT, AHMEDABAD 6. :<* / GUARD FILE. / BY ORDER, &8++ //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION .. 20.12.17(DICTATION-PAD 4-PA GES ATTACHED AT THE END OF THIS APPEAL-FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 21.12.17 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S.22.12.17 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 22.12.17 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER