AMEX INFORMATION TECHNOLOGIES LTD, MUMBAI V. ACIT 8(1), MUMBAI

ITA 3519/MUM/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 48545 (ITAT-MUMBAI)
• Duration Of Justice: 11 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-04-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 05-05-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S N L AGARWALA
• Keywords: Opportunity of being heard; Rule 8D; Set aside
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES A, MUMBAI BEFORE SHRI R.S.SYAL, AM AND SHRI V.DURGA RAO, JM ITA NO.3519/MUM/2010 : ASST.YEAR 2006-2007 M/S. AMEX INFORMATION TECHNOLOGIES LTD. SOLARIS 1, C-409 SAKIVIHAR ROAD OPP : L&T GATE NO.6, ANDHERI (EAST) POWAI, MUMBAI-400 072. PAN :AAACA67948L. VS. THE ASSTT.COMMISSIONER OF INCOME - TAX CIRCLE 8(1) MUMBAI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI S.N.L.AGARWALA RESPONDENT BY : SHRI MANVENDRA GOYAL O R D E R PER R.S.SYAL (AM) : THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDER PASSED BY THE COMMISSIONER OF INCOME-TAX (APPEALS) ON 18.02.2010 IN RELATION TO THE ASSESSMENT YEAR 2006-2007. 2. ONLY GROUND RAISED IN THIS APPEAL IS AGAINST THE CONFIRMATION OF DISALLOWANCE U/S.14A OF THE ACT. THE A.O. HAS COMPUTED THE DISAL LOWANCE U/S.14A AT RS.19,05,711. NO RELIEF WAS ALLOWED IN THE FIRST AP PEAL. AGGRIEVED THEREBY, THE ASSESSEE IS IN APPEAL BEFORE US. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE RELEVANT MATERIAL ON RECORD. IT IS NOTED THAT THE QUESTION OF MAKING DIS ALLOWANCE U/S 14A IS NO MORE RES INTEGRA IN VIEW OF THE JUDGMENT OF THE HONBLE BOMBAY HI GH COURT IN GODREJ & BOYCE LTD. MFG. CO. VS. DCIT (2010) 328 ITR 81 (BOM ) HOLDING THAT THE PROVISIONS OF SECTION 14A ARE APPLICABLE IN CIRCUMS TANCES AS ARE PREVAILING PRESENTLY AND THE DISALLOWANCE HAS TO BE WORKED OUT BY THE AO ON SOME `REASONABLE BASIS AND NOT RULE 8D. UNDER SUCH CIRC UMSTANCES, WE SET ASIDE THE IMPUGNED ORDER AND RESTORE THE MATTER TO THE FILE O F THE AO FOR DECIDING THE ITA NO.3519/MUM/2010 M/S.AMEX INFORMATION TECHNOLOGIES LIMITED. 2 QUANTUM OF DISALLOWANCE, AS PER THE AFORE-NOTED JU DGMENT, AFTER ALLOWING A REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESS EE. 4. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATIST ICAL PURPOSES. ORDER PRONOUNCED ON THIS 29 TH DAY OF APRIL, 2011. SD/- SD/- (V.DURGA RAO) JUDICIAL MEMBER (R.S.SYAL) ACCOUNTANT MEMBER MUMBAI : 29 TH APRIL, 2011. DEVDAS* COPY TO : 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT CONCERNED 4. THE CIT(A) - XVI, MUMBAI. 5. THE DR/ITAT, MUMBAI. 6. GUARD FILE. TRUE COPY. BY ORDER ASSISTANT REGISTRAR, ITAT, MUMBAI.