M/s. MEW Electricals Ltd.(Formerly Mahesh Enamelled Wires Pvt.Ltd.), Baroda V. The Tax Recovery Officer-4 & A.O., Vadodara

ITA 329/AHD/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 6252 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 11 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-01-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Appeal Filed On: 09-02-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RICHA RASTOGI
• Keywords: Earning of tax free income
• Section: 143(3); 14A

Judgement Text

, A IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JM AND SHRI PRADIP KUMAR KEDIA, AM ./ITA.NO. 329/AHD/2016 ( / ASSTT YEAR :2012-13) M/S MEW ELECTRICALS LTD. (FORMERLY MAHESH ENAMELLED WIRES PVT. LTD.) 305/A, WINDSOR PLAZA, R.C. DUTT ROAD, BARODA-390005 PAN: AABCM4242L VS. THE TRO-4 & A.O. AAYKAR BHAVAN, RACE COURCE ROAD, VADODARA, GUJARAT- 390007 (APPELLANT) (RESPONDENT) / APPELLANT BY: SHRI SUNIL TALATI, A.R. / RESPONDENT BY: MS. RICHA RASTOGI, SR. D.R / DATE OF HEARING 10/01/2018 /DATE OF PRONOUNCEMENT 16/01/2018 / O R D E R PER PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTAN CE OF THE ASSESSEE AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX(APPEALS) DATED 19.11.2015 ARISING IN THE ASSE SSMENT ORDER DATED 07.11.2014 PASSED UNDER SECTION 143(3) OF TH E ACT BY ASSESSING OFFICER RELEVANT TO ASSESSMENT YEAR 2012- 13. ITA.NO. 329/AHD/2016 ASSESSMENT YEAR 2012-13 - 2 2. IN THE CAPTIONED APPEAL THE ASSESSEE HAS ASSAILE D THE DISALLOWANCE OF RS. 7,27,241/- BY THE ASSESSING OFF ICER BY INVOKING SECTION 14A OF THE ACT. 3. WHEN THE MATTER WAS CALLED FOR HEARING THE LEARN ED AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE SUBMITTE D THAT THE ASSESSING OFFICER MADE A TOTAL DISALLOWANCE OF RS. 7,27,241/- COMPRISING OF RS. 6,77,898/- OUT OF INTEREST AND R S. 49,343/- TOWARDS ADMINISTRATIVE EXPENSES UNDER RULE 8D R.W.S. 14A OF THE ACT. IT WAS SUBMITTED THAT LEARNED CIT(A) ALSO CONFIRMED THE AF ORESAID DISALLOWANCE BASED ON THE APPELLATE ORDER OF THE LD . CIT(A) RELEVANT TO ASSESSMENT YEAR 2011-12 DATED 05.06.2015. IT WAS POINTED OUT BY THE LD. AUTHORIZED REPRESENTATIVE THAT THE AFORESAI D APPELLATE ORDER OF THE LD. CIT(A) RELEVANT TO ASSESSMENT YEAR 2011- 12 WAS SET ASIDE AND RESTORED TO THE FILE OF THE LD. CIT(A) IN ITA N O. 2592/AHD/2015 ORDER DATED 19.12.2017. THE LD. AUTHORIZED REPRESEN TATIVE ACCORDINGLY SOUGHT APPROPRIATE RELIEF. 4. THE LD. DEPARTMENTAL REPRESENTATIVE ON THE OTHER HAND SUBMITTED THAT THE CAPTAINED ISSUE CAN BE SET ASIDE TO THE FILE OF THE LD. CIT(A) IN LINE WITH THE VIEW TAKEN BY THE ITAT RELEVANT TO ASSESSMENT YEAR 2011-12. 5. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISSIO NS. WE FIND THAT IDENTICAL ISSUE CAME UP BEFORE THE CO-ORDINATE BENCH IN ASSESSMENT YEAR 2011-12 IN ASSESSEE OWN CASE WHERE IN THE SIMILAR ITA.NO. 329/AHD/2016 ASSESSMENT YEAR 2012-13 - 3 CIRCUMSTANCES. THE ISSUE WAS SET ASIDE TO THE FILE OF THE LD. CIT(A) FOR DE NOVO ADJUDICATION. 6. THE RELEVANT OPERATIVE PARA OF THE ORDER OF THE CO-ORDINATE BENCH RELEVANT TO ASSESSMENT YEAR 2011-12 IS REPROD UCED HEREUNDER:- WE HAVE HEARD BOTH THE SIDES AND PERUSED THE MATERIAL ON RECORD. WE OBSERVED THAT LD. CIT(A) HAS SUSTAINED THE DISALLOWANCE MADE BY THE ASSESSING OFFICER U/S. 14A R.W. RULE 8D IN RESPECT OF EXPENDITURE INCURRED FOR EARNING EXEMPT INCOME BY REFERRING TO THE DECISION OF LD. CIT(A) ON THE IDENTICAL ISSUE IN THE CASE OF ASSESSEE FOR ASSESSMENT YEAR 2008-09. WE HAVE CONSIDERED THE SUBMISSION OF THE LD. COUNSEL THAT BECAUSE OF SMALLNESS OF THE AMOUNT OF DISALLOWANCE INVOLVED THE ASSESSEE HAS NOT CONTESTED THE DECISION OF THE LD. CIT(A) FOR ASSESSMENT YEAR 2008-09. IN VIEW OF THE AFORESAID FACTS AND CIRCUMSTANCES WE OBSERVE THAT IN THE INTEREST OF JUSTICE, IT WILL BE APPROPRIATE TO RESTORE THIS CASE TO THE FILE OF LD. CIT(A) TO DECIDE IT ON MERI T WITHOUT REFERRING TO THE DECISION OF THE LD. CIT(A) FOR THE ASSESSMENT YEAR 2008-09. ACCORDINGLY, THE ISSUE IS SET ASIDE TO THE LD. CIT(A) TO DECIDE AFRESH AFTER AFFORDING ADEQUATE OPPORTUNITIES TO THE ASSESSEE. 7. IN CONSONANCE WITH THE VIEW TAKEN IN ASSESSMENT YEAR 2011- 12 THE CAPTAINED ISSUE IN ASSESSMENT YEAR 2012-13 I S ALSO SET ASIDE TO THE FILE OF THE LD. CIT(A) WITH IDENTICAL DIRECTION S APPLICABLE TO ASSESSMENT YEAR 2011-12. ACCORDINGLY, THE ISSUE IS SET ASIDE AND ITA.NO. 329/AHD/2016 ASSESSMENT YEAR 2012-13 - 4 RESTORED TO THE FILE OF THE LD. CIT(A) FOR ADJUDICA TION AFRESH AFTER AFFORDING PROPER OPPORTUNITY TO THE ASSESSEE IN THI S REGARD. 8. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 16/01/ 2018 AT AHM EDABAD. SD/- SD/- (RAJPAL YADAV) JUDICIAL MEMBER MUKUL (PRADIP KUMAR KEDIA) ACCOUNTANT MEMBER DATED, 16 /01/2018 ! '!/ COPY OF THE ORDER FORWARDED TO : 1. $% / THE APPELLANT 2. &$% / THE RESPONDENT. 3. '(( ) * / CONCERNED CIT 4. ) * ( ) / THE CIT(A)- 5. !-. , , /DR,ITAT, AHMEDABAD. 6. .0 12 / GUARD FILE. ) ' / BY ORDER, ' (3 (ASSTT.REGISTRAR) ITAT, AHMEDABAD