BRIJMOHAN L. SARDA, MUMBAI V. ACIT 11(2), MUMBAI

ITA 362/MUM/2012

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 0845 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 6 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 21-05-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 16-01-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PAWAN KUMAR BIRLA
• Assessee Lawyers: SANJIV M SHAH
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH B, MUMBAI BEFORE SHRI G.S. PANNU, ACCOUNTANT MEMBER AND SHRI SANJAY GARG, JUDICIAL MEMBER ITA NO.362/M/2012 ASSESSMENT YEAR: 2008-09 SHRI BRIJMOHAN L. SARDA, 61, RAJGIR CHAMBERS, 7 TH FLOOR, 12/4, SHAHID BHAGAT SINGH ROAD, FORT, MUMBAI 400 023 PAN: ABIPS 5217Q VS. ASSISTANT COMMISSIONER OF INCOME TAX 11(2), AAYAKAR BHAVAN, MUMBAI - 400020 (APPELLANT) (RESPONDENT) PRESENT FOR: ASSESSEE BY : SHRI SANJIV M. SHAH, A.R. REVENUE BY : SHRI PAWAN KUMAR BIRLA, D.R. DATE OF HEARING : 21.05.2015 DATE OF PRONOUNCEMENT : 31.07.2015 O R D E R PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSES SEE AGAINST THE ORDER DATED 19.12.2011 OF THE COMMISSIONER OF INCOME TAX (APPEALS) [HEREINAFTER REFERRED TO AS THE CIT(A)] RELEVANT TO ASSESSMENT Y EAR 2008-09. 2. THE EFFECTIVE ISSUE TAKEN BY THE ASSESSEE IS REG ARDING THE DISALLOWANCE OF RS.75,735/- UNDER SECTION 14A OF THE ACT READ WI TH RULE 8D2(III) OF THE INCOME TAX RULES ON ACCOUNT OF ADMINISTRATIVE EXPEN DITURE IN RELATION TO EARNING OF TAX EXEMPT DIVIDEND OF INCOME OF RS.1,04 ,175/-. AT THE OUTSET, THE LD. A.R. OF THE ASSESSEE HAS SUB MITTED THAT THE ASSESSEE HAS NOT CLAIMED ANY ADMINISTRATIVE EXPENDI TURE IN ITS P & L ACCOUNT. THE ASSESSEE HAS ALSO NOT CLAIMED EVEN D-MAT ACCOUN T EXPENDITURE IN THE P & ITA NO.362/M/2012 SHRI BRIJMOHAN L. SARDA 2 L ACCOUNT AND HAS DEBITED THE SAME TO PERSONAL ACCO UNT. THE LD. A.R. HAS FURTHER BROUGHT OUR ATTENTION TO THE DECISION OF TH E LD. CIT(A) IN SUBSEQUENT ASSESSMENT YEAR 2009-10 WHEREIN THE LD. CIT(A) HAS DELETED THE DISALLOWANCE ON ACCOUNT OF ADMINISTRATIVE EXPENDITURE UNDER SIMI LAR CIRCUMSTANCES. SINCE THE ASSESSEE HAS NOT CLAIMED ANY ADMINISTRATIVE EXP ENDITURE IN P & L ACCOUNT, HENCE UNDER SUCH CIRCUMSTANCES NO DISALLOWANCE OF E XPENDITURE CAN BE MADE UNDER RULE 8D2(III) OF THE RULES. THE DISALLOWANCE MADE BY THE LOWER AUTHORITIES ON THIS ACCOUNT IS THEREFORE ORDERED TO BE DELETED. 3. THE NEXT ISSUE IS LEVY OF INTEREST UNDER SECTION 234C OF THE ACT WHICH BEING CONSEQUENTIAL DOES NOT REQUIRE ANY SPECIFIC A DJUDICATION. 4. WITH THE ABOVE OBSERVATIONS, THE APPEAL OF THE A SSESSEE IS HEREBY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 31.07.2015. SD/- SD/- (G.S. PANNU) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 31.07.2015. * KISHORE, SR. P.S. COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT (A) CONCERNED, MUMBAI THE DR CONCERNED BENCH //TRUE COPY// [ BY ORD ER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.