AJIT KUMAR CHORDIA, CHENNAI V. ITO, CORP WARD-4(4), CHENNAI

ITA 3418/CHNY/2018

• Counselvise Citation: [2019] 113 COUNSELVISE.COM (IT) 6364 (ITAT-CHENNAI)
• Duration Of Justice: 11 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-11-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 14-12-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: G D JAYANTHI ANGAYARKANNI
• Assessee Lawyers: AJIT KUMAR CHORDIA
• Keywords: Salary income; Earning of tax free income; Rule 8D

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , B BENCH, CHENNAI . . . , , BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ ITA NO.3418/CHNY/2018 [ [ /ASSESSMENT YEAR: 2013-14 SHRI AJIT KUMAR CHORDIA, GENERAL MUTHIAH MUDALI STREET, SOWCARPET, CHENNAI 600 079. VS. THE INCOME TAX OFFICER, CORPORATE WARD 4(4), CHENNAI 34. PAN: A ACPC 5346F ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : SHRI AJIT KUMAR CHORDIA, CA /RESPONDENT BY : MS. G.D. JAYANTHI ANGAYARKANNI, JCIT /DATE OF HEARING : 22.08.2019 /DATE OF PRONOUNCEMENT : 18.11.2019 / O R D E R PER SHRI S. JAYARAMAN, ACCOUNTANT MEMBER : THE ASSESSEE FILED THIS APPEAL AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-8, CHENNAI IN ITA NO.105/16- 17 DATED 28.09.2018 FOR THE ASSESSMENT YEAR 2013-14. ITA NO.3418/CHNY/2018 :- 2 -: 2. SHRI AJIT KUMAR CHORDIA, THE ASSESSEE, ADMITTED INCOME FROM SALARY AND OTHER SOURCES FOR THE ASSESSMENT YEAR 2013-14. WHILE MAKING THE ASSESSMENT, THE ASSESSING OFFICER FOUND THAT THE ASSESSEE HAS INCURRED INTEREST EXPENSES AND SHOWN DIVIDEND RECEIPT. DURING THE YEAR, THE ASSESSEE HAS MADE INVESTMENT IN SHARES OF RS.2.08 CRORES WITH VARIOUS COMPANIES SUCH AS M/S. KHIVRAJ GROUP OF COMPANIES AND MANY OTHER COMPANIES. SINCE, THE ASSESSEE HAS INCURRED EXPENDITURE BY WAY OF INTEREST DURING THE PREVIOUS YEAR WHICH IS NOT DIRECTLY ATTRIBUTABLE TO ANY INCOME OR RECEIPT, THE ASSESSING OFFICER INVOKED JURISDICTION U/S.14A READ WITH RULE 8D(II) & (III) AND MADE DISALLOWANCE OF RS.8,41,776/- COMBINEDLY. AGGRIEVED AGAINST THAT ORDER, THE ASSESSEE FILED APPEAL BEFORE THE CIT(A). THE LD.CIT(A) RELYING ON THE SUPREME COURT DECISION IN THE CASE OF M/S. GODREJ AND BOYCE MFG. CO. LTD. (CA NO.7020/2011), M/S. MAXOPP INVESTMENTS LIMITED ETC.,SUSTAINED THE ADDITION MADE U/S.14A READ WITH RULE 8D. AGGRIEVED AGAINST THAT ORDER, THE ASSESSEE FILED THIS APPEAL. 3. THELD.AR PLEADED THAT THE DISALLOWANCE BE RESTRICTED TO THE EXTENT OF DIVIDEND INCOME. PER CONTRA, THE LD.DR SUPPORTED THE ORDERS OF THE LOWER AUTHORITIES. ITA NO.3418/CHNY/2018 :- 3 -: 4. WE HEARD THE RIVAL SUBMISSIONS AND FIND MERIT IN THE ASSESSEES CLAIM THAT THE RESTRICTION OF DISALLOWANCE BE RESTRICTED TO THE EXTENT OF DIVIDEND INCOME AS HELD BY THE HONBLE DELHI HIGH COURT IN THE CASE OF M/S. JOINT INVESTMENTS (P.) LTD. VS. CIT (2015) 372 ITR 694 (DELHI). THEREFORE, WE DIRECT THE ASSESSING OFFICER TO RESTRICT THE DISALLOWANCE TO THE EXTENT OF EXEMPT INCOME, IN ACCORDANCE WITH THE ABOVE DECISION. 5. IN THE RESULT, THE ASSESSEES APPEAL IS TREATED AS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 18 TH NOVEMBER, 2019 IN CHENNAI. SD/- SD/- /CHENNAI, /DATED 18 TH NOVEMBER, 2019 RSR /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. ( ) /CIT(A) 4. /CIT 5. /DR 6. /GF ( . . . ) (N.R.S. GANESAN) / JUDICIAL MEMBER ( ) (S. JAYARAMAN) /ACCOUNTANT MEMBER