MAHINDRA HOLDINGTS & FINANCE LTD ( SINCE MERGED WITH MAHINDRA & MAHINDRA LTD), MUMBAI V. ACIT CIR 6(3), MUMBAI

ITA 3525/MUM/2010

• Counselvise Citation: [2011] 119 COUNSELVISE.COM (IT) 7283 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-08-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 28-07-2011
• Assessment Year: 2005-2006
• Appeal Filed On: 05-05-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K NAYAK
• Assessee Lawyers: SANTOSH PARAB
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES B, MUMBAI BEFORE SHRI R.S.SYAL, AM AN D SHRI N.V.VASUDEVAN, JM ITA NO.3525/MUM/2010 : ASST.YEAR 2005-2006 M/S.MAHINDRA HOLDINGS & FINANCE LTD. (SINCE MERGED WITH MAHINDRA & MAHINDRA LIMITED), MAHINDRA TOWERS P.K.KURNE CHOWK, WORLI MUMBAI 400 018. PAN : AAACM4489N. VS. THE ASSTT.COMMISSIONER OF INCOME-TAX CIRCLE 6(3) MUMBAI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SANTOSH PARAB RESPONDENT BY : SHRI A.K.NAYAK DATE OF HEARING : 28.07.2011 DATE OF PRONOUNCEMENT :05.08.2011 O R D E R PER R.S.SYAL, AM : THIS APPEAL BY THE ASS ESSEE ARISES OUT OF TH E ORDER PASSED BY THE COMMISSIONER OF INCOME-TAX (APPEALS) ON 04.02.2010 IN RELATION TO THE ASSESSMENT YEAR 2005-2006. 2. THE ONLY ISSUE RAISED IN THIS A PPEAL IS AGAINST THE CONFIRMATION OF DISALLOWANCE MADE U/S.14A OF THE ACT. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT THE ASSESSING OFFICER MADE DISALLOWANCE OF RS.53.97LAKH. IN FIRST APPEAL, THE LEARNED CIT(A) UPHELD THE ACTI ON OF THE ASSESSING OFFICER IN PRINCIPLE, BUT DIRECTED THE AO TO RESTRICT THE DISALLOWANCE AS PER THE MANDATE OF RULE 8D.. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE RELEVANT MATERIAL ON RECORD. IT IS NOTED THAT THE QUESTION OF MAKING DISALLOWANCE U/ S 14A IS NO MORE RES INTEGRA IN VIEW OF THE JUDGMENT OF THE HONBLE BOMBAY HIGH COURT IN GODREJ & BOYCE LTD. MFG. CO. VS. DCIT [(2010) 328 ITR 81 (BOM)] HOLDING THAT THE PROVISIONS OF SECTION 14A ARE APPLICABLE IN CIRCUMSTANCES AS ARE PREVAILING ITA NO.3525/MUM/2010 M/S.MAHINDRA HOLDINGS & FINANCE LIMITED. 2 PRESENTLY AND THE DISALLOWANCE HAS TO BE WORKED OUT BY THE AO ON SOME `REASONABLE BASIS AND NOT RU LE 8D. UNDER SUCH CIRCUMST ANCES, WE SET ASIDE THE IMPUGNED ORDER AND RESTORE TH E MATTER TO THE FILE OF THE AO FOR DECIDING THE QUANTUM OF DISALLOWANCE, AS PER THE AFORE-NOTED J UDGMENT, AFTER ALLOWING A REASONABLE OPPORTUNITY OF BE ING HEARD TO THE ASSESSEE. 4. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN TH E OPEN COURT ON THIS 05 TH DAY OF AUGUST, 2011. SD/- SD/- (N.V.VASUDEVAN) (R.S.SYAL) JUDICIAL MEMBER ACC OUNTANT MEMBER MUMBAI : 05 TH AUGUST, 2011. DEVDAS*` COPY TO : 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT CONCERNED 4. THE CIT(A) - XII, MUMBAI. 5. THE DR/ITAT, MUMBAI. 6. GUARD FILE. TRUE COPY. BY ORDER ASSISTANT REGISTRAR, ITAT, MUMBAI.