DCIT 1(3)(1), MUMBAI V. PAYONE ENTERPRISES (P) LTD. , MUMBAI

ITA 3682/MUM/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 6326 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-08-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 28-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABI RAMA KARTIKEYAN
• Keywords: Rule 8D

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C , BENCH MUMBAI BEFORE SHRI M.BALAGANESH, AM & SHRI AMARJIT SINGH, JM ITA NO. 3682 /MUM/201 8 ( ASSESSMENT YEAR : 2014 - 15 ) DEPUTY COMMISSIONER OF INCOME TAX 1(3)(1) ROOM NO.540, 5 TH FLOOR AAYAKAR BHA VAN M.K.ROAD MUMBAI 400 020 VS. M/S. PAYONE ENTERPRISES (P) LTD., 6 TH FLOOR, MANEK MASHAL, 90, VEER NARIMAN ROAD CHURCHGATE, MUMBAI 400 020 PAN/GIR NO. AAFCA4453K (APPELLANT ) .. (RESPONDENT ) REVENUE BY SHRI ABI RAMA KARTIKEYAN ASSESSEE BY SHRI DEEPAK JAIN DATE OF HEARING 30 / 07 /2019 DATE OF PRONOUNCEMENT 02 / 08 /2019 / O R D E R PER M. BALAGANESH (A.M) : THIS APPEAL IN ITA NO. 3682/MUM/2018 FOR A.Y. 2014 - 15 ARISES OUT OF THE ORDER BY THE LD. COMMISSIONER OF INCOME TAX (A PPEALS) - 2, MUMBAI IN APPEAL NO. CIT(A) - 2/IT/187/2016 - 17 DATED 05/01/2018 (LD. CIT(A) IN SHORT) AGAINST THE ORDER OF ASSESSMENT PASSED U/S.143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS ACT) DATED 23/11/2016 BY THE LD . DY. COMMISSIONER OF IN COME TAX, CIRCLE - 1(2)(2), MUMBAI (HEREINAFTER REFERRED TO AS LD. AO). ITA NO.3682/MUM/2018 M/S. PAYONE ENTERPRISES P. LTD 2 2. THE ONLY ISSUE TO BE DECIDED IN THIS APPEAL IS AS TO WHETHER THE LD. CIT(A) WAS JUSTIFIED IN RESTRICTING THE DISALLOWANCE MADE U/S.14A OF THE ACT READ WITH RULE 8D(2)(III) OF THE RUL ES TO THE EXTENT OF DIVIDEND INCOME. 3. WE HAVE HEARD RIVAL SUBMISSIONS. WE FIND THAT ASSESSEE HAD EARNED DIVIDEND INCOME OF RS.81,372/ - AND CLAIMED THE SAME AS EXEMPT IN THE RETURN OF INCOME. ASSESSEE MADE SUOMOTO DISALLOWANCE OF ADMINISTRATIVE EXPENSES U/S.14A OF THE ACT READ WITH RULE 8D(2)(I I I) OF THE RULES IN THE SUM OF RS.49,542/ - . THE LD. AO PROCEEDED TO COMPUTE THE DISALLOWANCE UNDER THIRD LIMB OF RULE 8D(2) AND ARRIVED AT THE DISALLOWANCE FIGURE OF RS.1,21,84,586/ - AFTER REDUCING THE AMOUNT DISAL LOWED ALREADY BY THE ASSESSEE IN THE SUM OF RS.49,452/ - . THE LD. CIT(A) BY PLACING RELIANCE ON THE DECISION OF THE HONBLE DELHI HIGH COURT IN THE CASE OF JOINT INVESTMENTS REPORTED IN 372 ITR 694 RESTRICTED THE DISALLOWANCE MADE U/S.14A OF THE ACT TO THE EXTENT OF DIVIDEND INCOME. THE LD. CIT(A) DIRECTED THE LD. AO TO DISALLOW ONLY THE REMAINING SUM OF RS.31,920/ - (RS.81,372 RS. 4 9,452/ - ) U/S.14 A OF THE ACT. WE FIND NO INFIRMITY IN THE SAID ORDER OF THE LD. CIT(A) AS THE SAME HAS BEEN RENDERED BY FOLLOW ING THE DECISION OF THE HONBLE DELHI HIGH COURT AND THIS ISSUE IS ALSO NOW SETTLED BY THE HONBLE SU PREME COURT IN THE CASE OF MAXOP P INVESTMENTS REPORTED IN 402 ITR 640. ACCORDINGLY, THE GROUND RAISED BY THE REVENUE IS DISMISSED. 4 . IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 02 / 08 /201 9 SD/ - ( AMARJIT SINGH ) SD/ - (M.BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED 02 / 08 / 2019 KARUNA , SR.PS ITA NO.3682/MUM/2018 M/S. PAYONE ENTERPRISES P. LTD 3 COPY OF THE ORDER FORWARDED TO : BY ORDER, ( ASSTT. REGISTRAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//