M/s. Jayshree Finvest Ltd., RAJKOT-GUJARAT V. The ACIT, Circle-5, RAJKOT-GUJARAT

ITA 36/RJT/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 3381 (ITAT-RAJKOT)
• Duration Of Justice: 1 year(s) 9 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-11-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 06-02-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SUHAS MISTRY
• Keywords: Capital asset; Rule 8D
• Section: 143(3); 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT [CONDUCTED THROUGH E-COURT AT AHMEDABAD] BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SMT. MADHUMITA ROY, JUDICIAL MEMBER ./ I.T.A. NO. 36/RJT/2018 ( / ASSESSMENT YEAR : 2010-11) M/S. JAYSHREE FINVEST LTD. GROUND FLOOR, AJAY MENSION, MALAVIYA ROAD, RAJKOT / VS. THE COMMISSIONER OF INCOME TAX APPEAL-3 RAJKOT ./ ./ PAN/GIR NO. : AAAAS2360J ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : NONE (WRITTEN SUBMISSION) / RESPONDENT BY : MR. SUHAS MISTRY, SR.D.R. / DATE OF HEARING 14/10/2019 !'# / DATE OF PRONOUNCEMENT 15/11/2019 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANCE OF THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF I NCOME TAX(APPEALS)-3, RAJKOT (CIT' IN SHORT), DATED 16.1 1.2017 ITA NO. 36/RJT/18 [M/S. JAYSHREE FINVEST LTD. VS. CIT(A)] A.Y. 2010-11 - 2 - ARISING IN THE ASSESSMENT ORDER DATED 30.03.2013 PA SSED BY THE ASSESSING OFFICER (AO) UNDER S. 143(3) OF THE INCOM E TAX ACT, 1961 (THE ACT) CONCERNING AY 2010-11. 2. THE SOLITARY GROUND OF APPEAL RAISED BY THE ASS ESSEE CONCERNS DISALLOWANCE OF RS.9,69,399/- MADE UNDER S .14A R.W. RULE 8D OF THE INCOME TAX RULES. 3. WHEN THE MATTER WAS CALLED FOR HEARING, NONE APP EARED FOR THE ASSESSEE. HOWEVER, A WRITTEN SUBMISSION WAS PL ACED ON RECORD. THE MATTER WAS ACCORDINGLY PROCEEDED EX PARTE ON THE BASIS OF WRITTEN SUBMISSIONS FILED. 4. THE LEARNED DR FOR THE REVENUE RELIED UPON THE O RDER OF THE CIT(A). 5. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISSIO NS. AS PER THE SUBMISSIONS, THE ASSESSEE SEEKS TO SUBMIT THAT THE ASSESSEE BEING A DEALER IN SHARES AND SECURITIES AND HOLDS S HARES AS TRADING ASSETS, THE DIVIDEND INCOME GENERATED FROM SUCH TRADING ASSET IN NOT SUSCEPTIBLE TO THE DISALLOWANCE UNDER S.14A OF THE ACT. WE FIND THAT THE ISSUE IS NO LONGER RES INTEGRA . THE HONBLE SUPREME COURT IN MAXOPP INVESTMENT LTD. VS. CIT [2018] 402 ITR 640 (SC) HAS INTER ALIA HOLD THAT SECTION 14A OF THE ACT APPLIES IRRESPECTIVE OF WHETHER THE SHARES ARE HELD AS STOCK-IN-TRADE OR AS CAPITAL ASSET. THUS, IN VIEW OF THE DECISION ITA NO. 36/RJT/18 [M/S. JAYSHREE FINVEST LTD. VS. CIT(A)] A.Y. 2010-11 - 3 - OF THE HONBLE SUPREME COURT, WE SEE NO MERIT IN TH E PLEA OF THE ASSESSEE. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DIS MISSED. SD/- SD/- (MADHUMITA ROY) (PRADIP KUMAR KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 15/11/2019 TRUE COPY S. K. SINHA / COPY OF ORDER FORWARDED TO:- &. / REVENUE 2. / ASSESSEE (. )*+ , / CONCERNED CIT 4. ,- / CIT (A) /. 012 33*+4 *+#4 56) / DR, ITAT, AHMEDABAD 7. 289 : / GUARD FILE. BY ORDER / 4 DEPUTY/ASSTT. REGISTRAR ITAT, RAJKOT THIS ORDER PRONOUNCED IN OPEN COURT ON 15/11/201 9 IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT [CONDUCTED THROUGH E-COURT AT AHMEDABAD] BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SMT. MADHUMITA ROY, JUDICIAL MEMBER ./ I.T.A. NO. 36/RJT/2018 ( / ASSESSMENT YEAR : 2010-11) M/S. JAYSHREE FINVEST LTD. GROUND FLOOR, AJAY MENSION, MALAVIYA ROAD, RAJKOT / VS. THE COMMISSIONER OF INCOME TAX APPEAL-3 RAJKOT ./ ./ PAN/GIR NO. : AAAAS2360J ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : NONE (WRITTEN SUBMISSION) / RESPONDENT BY : MR. SUHAS MISTRY, SR.D.R. / DATE OF HEARING 14/10/2019 !'# / DATE OF PRONOUNCEMENT 15/11/2019 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANCE OF THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF I NCOME TAX(APPEALS)-3, RAJKOT (CIT' IN SHORT), DATED 16.1 1.2017 ITA NO. 36/RJT/18 [M/S. JAYSHREE FINVEST LTD. VS. CIT(A)] A.Y. 2010-11 - 2 - ARISING IN THE ASSESSMENT ORDER DATED 30.03.2013 PA SSED BY THE ASSESSING OFFICER (AO) UNDER S. 143(3) OF THE INCOM E TAX ACT, 1961 (THE ACT) CONCERNING AY 2010-11. 2. THE SOLITARY GROUND OF APPEAL RAISED BY THE ASS ESSEE CONCERNS DISALLOWANCE OF RS.9,69,399/- MADE UNDER S .14A R.W. RULE 8D OF THE INCOME TAX RULES. 3. WHEN THE MATTER WAS CALLED FOR HEARING, NONE APP EARED FOR THE ASSESSEE. HOWEVER, A WRITTEN SUBMISSION WAS PL ACED ON RECORD. THE MATTER WAS ACCORDINGLY PROCEEDED EX PARTE ON THE BASIS OF WRITTEN SUBMISSIONS FILED. 4. THE LEARNED DR FOR THE REVENUE RELIED UPON THE O RDER OF THE CIT(A). 5. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISSIO NS. AS PER THE SUBMISSIONS, THE ASSESSEE SEEKS TO SUBMIT THAT THE ASSESSEE BEING A DEALER IN SHARES AND SECURITIES AND HOLDS S HARES AS TRADING ASSETS, THE DIVIDEND INCOME GENERATED FROM SUCH TRADING ASSET IN NOT SUSCEPTIBLE TO THE DISALLOWANCE UNDER S.14A OF THE ACT. WE FIND THAT THE ISSUE IS NO LONGER RES INTEGRA . THE HONBLE SUPREME COURT IN MAXOPP INVESTMENT LTD. VS. CIT [2018] 402 ITR 640 (SC) HAS INTER ALIA HOLD THAT SECTION 14A OF THE ACT APPLIES IRRESPECTIVE OF WHETHER THE SHARES ARE HELD AS STOCK-IN-TRADE OR AS CAPITAL ASSET. THUS, IN VIEW OF THE DECISION ITA NO. 36/RJT/18 [M/S. JAYSHREE FINVEST LTD. VS. CIT(A)] A.Y. 2010-11 - 3 - OF THE HONBLE SUPREME COURT, WE SEE NO MERIT IN TH E PLEA OF THE ASSESSEE. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DIS MISSED. SD/- SD/- (MADHUMITA ROY) (PRADIP KUMAR KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 15/11/2019 TRUE COPY S. K. SINHA / COPY OF ORDER FORWARDED TO:- &. / REVENUE 2. / ASSESSEE (. )*+ , / CONCERNED CIT 4. ,- / CIT (A) /. 012 33*+4 *+#4 56) / DR, ITAT, AHMEDABAD 7. 289 : / GUARD FILE. BY ORDER / 4 DEPUTY/ASSTT. REGISTRAR ITAT, RAJKOT THIS ORDER PRONOUNCED IN OPEN COURT ON 15/11/201 9