MANOHAR EXPORTS PVT. LTD., MUMBAI V. ACIT.,-4(2), MUMBAI

ITA 3483/MUM/2011

• Counselvise Citation: 348319914 RSA 2011
• Duration Of Justice: 1 year(s) 1 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-06-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 02-05-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M RAJAN
• Assessee Lawyers: RAJKUMAR SINGH
• Section: 14A

Judgement Text

MANOHAR EXPORTS PVT.LTD . I.T .A. NO. 3483/M/2011 PAGE 1 O F 3 IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH B MUMBAI BEFORE SHRI R.S.SYAL, ACCOUNTANT MEMBER & SHRI VIVEK VARMA, JUDICIAL MEMBER I.T.A.NO. 3483/MUM/2011 ASSESSMENT YEAR : 2007-08 MANOHAR EXPORTS PVT. LTD., C/O. D.C.BOTHRA & CO., CHARTERED ACCOUNTANTS, 297, TARDEO ROAD, WILLIE MANSION, NANACHOWK, 1 ST FLOOR, OPP. BANK OF INDIA, MUMBAI 400 007. PAN: AABCM 8461 D VS. ASST. COMMISSIONER OF I.T. 4(2), MUMBAI. (APPELLANT) (RESPONDENT) APPELLANT BY : MR. RAJKUMAR SINGH. RESPONDENT BY : MR. M. RAJAN. DATE OF HEARING: 06-06-2012. DATE OF PRONOUNCEMENT: 13-06-2012. O R D E R PER VIVEK VARMA, JM: THE APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINS T THE ORDER OF THE CIT(A) 11, MUMBAI, DATED 15-03-2011. 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST THE CONFIRMATION OF DISALLOWANCE U/S 14A. 3. BRIEFLY STATED, FACTS OF THE CASE ARE THAT IN TH E ASSESSMENT YEAR UNDER CONSIDERATION ASSESSEE EARNED TAX FREE DIVIDE ND INCOME OF RS. MANOHAR EXPORTS PVT.LTD . I.T .A. NO. 3483/M/2011 PAGE 2 O F 3 74,875/-. THE ASSESSEE OFFERED NO DISALLOWANCE U/S 14A. HOWEVER, AO COMPUTED THE DISALLOWANCE AT RS. 1,88,896/- U/R 8D. 4. THE CIT(A) UPHELD THE DISALLOWANCE. 5. AGGRIEVED, THE ASSESSEE IS NOW BEFORE THE ITAT. 6. BEFORE US, THE AUTHORISED REPRESENTATIVE SUBMITT ED THAT SINCE THE APPEAL RELATES TO ASSESSMENT YEAR 2007-08, PROV ISIONS OF RULE 8D CANNOT BE INVOKED. 7. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PERU SING THE RELEVANT MATERIAL ON RECORD, IT IS OBSERVED THAT THE HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF GODREJ & BOYCE MFG. CO.LTD. VS DCIT (328 ITR 81) HAS HELD THAT NO DISALLOWANCE U/S 14A IS MAINTAINAB LE IN THE CIRCUMSTANCE WHICH IS PREVAILING BEFORE US. HOWEVER , IT HAS BEEN HELD THAT RULE 8D CAN BE APPLIED ONLY AFTER ASSESSMENT Y EAR 2008-09. AS THE ASSESSMENT YEAR IN THE INSTANT CASE IS 2007-08, WE ARE OF THE CONSIDERED OPINION THAT THERE IS NO BASIS FOR THE A O FOR MAKING THE DISALLOWANCE AS U/R 8D WHICH HAS BEEN SUSTAINED BY THE CIT(A). 8. IN THE JUDGMENT OF GODREJ & BOYCE MFG. CO.LTD. V S. DCIT (SUPRA), THE HON'BLE BOMBAY HIGH COURT HAS LAID DO WN THAT IN THE YEAR PRECEDING TO ASSESSMENT YEAR 2008-09 THE DISALLOWAN CE IS REQUIRED TO BE MADE ON REASONABLE BASIS AND NOT AS PER RULE 8D. UNDER SUCH CIRCUMSTANCES, WE SET ASIDE THE IMPUGNED ORDER AND RESTORED THE MANOHAR EXPORTS PVT.LTD . I.T .A. NO. 3483/M/2011 PAGE 3 O F 3 MATTER TO THE FILE OF THE AO FOR WORKING OUT THE DI SALLOWANCE U/S 14A ON SOME REASONABLE BASIS IN CONFORMITY WITH THE JUD GMENT OF THE HIGH COURT. 9. IN THE RESULT, APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS DAY OF 1 3/06/2012. SD/- SD/- (R.S.SYAL) ( VIVEK VARMA ) ACCOUNTNAT MEMBER JUDI CIAL MEMBER MUMBAI: 13/06/2012. P/-*