Shri Shashin Vardman Sheth, Ahmedabad V. The Dy.CIT.,Circle-11, Ahmedabad

ITA 3430/AHD/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 6014 (ITAT-AHMEDABAD)
• Duration Of Justice: 7 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-07-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 27-12-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S N DIVETIA
• Keywords: Opportunity of being heard
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH B BEFORE SHRI MUKUL KUAMR SHRAWAT, JUDICIAL MEMBER AND SHRI A. K. GARODIA, ACCOUNTANT MEMBER I.T.A. NO. 3430/ AHD/2010 (ASSESSMENT YEAR 2007-08) SHASHIN VARDHMAN SHETH, 30, PANKAJ SOC., BHATTA, PALDI, AHMEDABAD VS. DCIT, CIRCLE 11, AHMEDABAD PAN/GIR NO. : AFLPS7952K (APPELLANT) .. (RESPONDENT) APPELLANT BY: SHRI S N DIVETIA, AR RESPONDENT BY: SHRI SAMIR TEKRIWAL, SR. DR O R D E R PER SHRI A. K. GARODIA, AM:- THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF LD. CIT(A) XVI, AHMEDABAD DATED 16.09.2010 FOR THE YEAR 2007-0 8. 2. THE ASSESSEE HAS RAISED VARIOUS GROUNDS BUT THE ONLY GRIEVANCE OF THE ASSESSEE IS REGARDING CONFIRMATION OF DISALLOWANCE OF RS.2,50,276/- U/S 14A AS PER THE WORKING MADE BY THE A.O. UNDER RULE 8D. 3. IT IS SUBMITTED BY THE LD. A.R. THAT AS PER THE JUDGMENT OF HONBLE BOMBAY HIGH COURT RENDERED IN THE CASE OF GODREJ & BOYCE MANUFACTURING PVT. LTD. AS REPORTED IN 328 ITR 81, RULE 8D IS NO T RETROSPECTIVE AND HENCE, CANNOT BE INVOKED IN ANY ASSESSMENT YEAR PRIOR TO A SSESSMENT YEAR 2008-09. HE SUBMITTED THAT THE MATTER MAY BE RESTORED BACK T O THE FILE OF THE A.O. FOR A FRESH DECISION AS PER THE JUDGEMENT OF HONBLE BO MBAY HIGH COURT AND OTHER JUDICIAL PRONOUNCEMENTS WHICH MAY BE AVAILABL E AT THE TIME WHEN HE IS DECIDING THE ISSUE. I.T.A.NO. /AHD/200 2 4. LD. D.R. OF THE REVENUE SUPPORTED THE ORDERS OF AUTHORITIES BELOW. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS, PERUSE D THE MATERIAL ON RECORD AND HAVE GONE THROUGH THE ORDERS OF AUTHORIT IES BELOW. WE FIND THAT IN THE PRESENT CASE, THE A.O. HAS MADE DISALLOWANCE OF RS.2,50,276/- U/S 14A BY APPLYING RULE 8D OF THE ACT. AS PER THE JUDGEME NT OF HON'BLE HIGH COURT OF BOMBAY IN THE CASE OF GODREJ & BOYCE MANUF ACTURING PVT. LTD. (SUPRA), RULE 8D IS NOT APPLICABLE IN THE PRESENT C ASE BECAUSE THE ASSESSMENT YEAR INVOLVED IN 2006-07 WHEREAS, RULE 8D WAS INSER TED FROM ASSESSMENT YEAR 2008-09 AND IT WAS HELD BY THE HON'BLE HIGH CO URT OF BOMBAY THAT RULE 8D IS NOT RETROSPECTIVE. HENCE, THE AUTHORITI ES BELOW WERE NOT JUSTIFIED IN INVOKING RULE 8D IN THE PRESENT CASE. BUT IT WA S HELD BY THE HON'BLE HIGH COURT OF BOMBAY IN THE CASE OF GODREJ & BOYCE MANUF ACTURING PVT. LTD. (SUPRA) THAT EVEN IN EARLIER YEARS, THE A.O. CAN MA KE DISALLOWANCE U/S 14A ON REASONABLE BASIS AND HENCE, WE SET SIDE THE ORDE R OF LD. CIT(A) ON THIS ISSUE AND RESTORE THE MATTER BACK TO THE FILE OF TH E A.O. FOR A FRESH DECISION IN THE LIGHT OF THE JUDGEMENT OF HON'BLE HIGH COURT OF BOMBAY IN THE CASE OF GODREJ & BOYCE MANUFACTURING PVT. LTD. (SUPRA). HE SHOULD ALSO CONSIDER ALL RELEVANT JUDICIAL PRONOUNCEMENTS WHICH ARE AVAI LABLE AT THE RELEVANT POINT OF TIME WHEN HE IS DECIDING THE MATTER. HE SHOULD PASS NECESSARY ORDERS AS PER LAW AS PER ABOVE DIRECTIONS AFTER PROVIDING ADE QUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 6. IN THE RESULT, APPEAL OF THE ASSESSEE STANDS ALL OWED FOR STATISTICAL PURPOSES. 7. ORDER PRONOUNCED IN THE OPEN COURT ON 29 TH JULY 2011. SD./- SD./- (MUKUL KUMAR SHRAWAT) (A. K. GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED : 29 TH JULY, 2011 SP I.T.A.NO. /AHD/200 3 COPY OF THE ORDER FORWARDED TO: 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE LD. CIT (APPEALS) 5. THE DR, AHMEDABAD 6. THE GUARD FILE 1. DATE OF DICTATION 29 TH JULY, 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 29/7 OTHER MEMBER 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P .S./P.S. 29/7 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 29/7 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. P.S./P.S. 29/7 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 29/7/2011 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK .. 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER . 9. DATE OF DESPATCH OF THE ORDER. ..