DCIT 5(3), MUMBAI V. SUREMI TRADING P. LTD, MUMBAI

ITA 3352/MUM/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 83469 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 3 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-08-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2006-2007
• Appeal Filed On: 30-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Earning of tax free income
• Section: 14A

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL E B ENCH, MUMBAI , ! '# $ $ $ $ , % && , , '# ' BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND SHRI SANJAY GARG, JUICIAL MEMBER ./ I.T.A. NO. 3352/MUM/2013 ( ( ( ( ( / ASSESSMENT YEAR :2006-07 THE DCIT 5(3), AAYAKAR BHAVAN, MUMBAI-400 020 / VS. M/S. SUREMI TRADING PVT. LTD., D-1, SINDHU HOUSE, NANABHAI LANE, MUMBAI-400 023 #) ! ./ %* ./ PAN/GIR NO. : AAACS 5620B ( )+ / APPELLANT ) .. ( ,-)+ / RESPONDENT ) )+ . / APPELLANT BY: SHRI PANKAJ KUMAR ,-)+ / . / RESPONDENT BY: SHRI KETAN VED / 01! / DATE OF HEARING :05.08.2014 23( / 01! / DATE OF PRONOUNCEMENT :05.08.2014 '4 / O R D E R PER N.K. BILLAIYA, AM: THIS APPEAL BY THE REVENUE IS PREFERRED AGAINST TH E ORDER OF THE LD. CIT(A)-9, MUMBAI DT. 26.2.2013 PERTAINING TO A. Y.2006-07. 2. THE SHORT GRIEVANCE OF THE REVENUE IS THAT THE L D. CIT(A) ERRED IN RESTRICTING THE DISALLOWANCE U/S. 14A OF THE ACT TO THE EXTENT OF 5% OF THE TOTAL EXEMPT INCOME AS CLAIMED BY THE ASSESSEE. ITA NO. 3352/M/2013 2 3. AT THE VERY OUTSET, THE LD. COUNSEL FOR THE ASSE SSEE STATED THAT AN IDENTICAL ISSUE CAME UP BEFORE THE TRIBUNAL IN A.Y. 2007-08 IN THE CASE OF THE ASSESSEE AND THE TRIBUNAL HAS RESTRICTED THE DI SALLOWANCE U/S. 14A TO 5% OF THE DIVIDEND INCOME. 4. THE LD. DEPARTMENTAL REPRESENTATIVE FAIRLY CONCE DED TO THIS. 5. WE HAVE CAREFULLY PERUSED THE ORDERS OF THE AUTH ORITIES BELOW. WE HAVE ALSO THE BENEFIT OF THE ORDER OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR A.Y. 2007-08 IN ITA NOS. 6007 & 5613/MUM/2011 A ND IDENTICAL ISSUE HAS BEEN CONSIDERED BY THE TRIBUNAL AT PARA 2 .3 OF ITS ORDER WHEREIN THE TRIBUNAL HAS OBSERVED THAT THE LD. CIT(A) HAS R ESTRICTED THE DISALLOWANCE U/S. 14A TO 5% OF THE DIVIDEND. THIS FINDINGS OF THE LD. CIT(A) RESTRICTING THE DISALLOWANCE TO 5% WAS FOUND TO BE VERY REASONABLE ON THE FACTS OF THE CASE. THE TRIBUNAL ACCORDINGLY CONFIRMED THE FINDINGS OF THE LD. CIT(A). AS NO DISTINGUISHI NG FACTS HAVE BEEN BROUGHT BEFORE US, RESPECTFULLY FOLLOWING THE FINDI NGS OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR A.Y. 2007-08, WE DO NOT FIN D ANY REASON TO INTERFERE WITH THE FINDINGS OF THE LD. CIT(A). 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF H EARING ON 5 TH AUGUST, 2014. SD/- SD/- (SANJAY GARG ) (N.K. BILLAIYA) '# / JUDICIAL MEMBER ! '# / ACCOUNTANT MEMBER MUMBAI; 5' DATED : 5 TH AUGUST, 2014 . . ./ RJ , SR. PS ITA NO. 3352/M/2013 3 '4 '4 '4 '4 / // / ,0 ,0 ,0 ,0 6(0 6(0 6(0 6(0 / COPY OF THE ORDER FORWARDED TO : 1. )+ / THE APPELLANT 2. ,-)+ / THE RESPONDENT. 3. 7 ( ) / THE CIT(A)- 4. 7 / CIT 5. 8& ,0 , , / DR, ITAT, MUMBAI 6. &9 : / GUARD FILE. '4 '4 '4 '4 / BY ORDER, -0 ,0 //TRUE COPY// ; ;; ; / < < < < % % % % (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI