M/S. PREMIER INDUSTRIES (INDIA) LTD., Indore V. THE ACIT 1(2), Indore

ITA 385/IND/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 5650 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 5 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-11-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 07-11-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 27-05-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MOHD JAVED
• Assessee Lawyers: S N AGRAWAL
• Section: 14A

Judgement Text

PREMIER INDUSTRIES ITA NO. 385/IND/2015 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE .., ..!', #$ # !% BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER AND SHRI O.P. MEENA, ACCOUNTANT MEMBER I.T.A. NO.385 /IND/2015 ASSESSMENT YEAR: 2007-08 M/S PREMIER INDUSTRIES (INDIA) LTD. INDORE PAN AABCP 1890P :: APPELLANT VS ACIT 1(2) INDORE :: RESPONDENT REVENUE BY SHRI MOHD. JAVED ASSESSEE BY SHRI S.N. AGRAWAL ! ' #$ DATE OF HEARING 7.11.2016 %&'( #$ DATE OF PRONOUNCEMENT 7.11.2016 * O R D E R PER SHRI D.T. GARASIA, JM THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LEARNED CIT(A)-II, INDORE, DATED 27.2.2 015. PREMIER INDUSTRIES ITA NO. 385/IND/2015 2 2. THE ONLY GROUND IN THIS RELATES TO IMPOSITION OF PENALTY U/S 271(12)(C) OF THE ACT. 2. THE SHORT FACTS OF THE CASE ARE THAT THE ASSESSEE HAS INVESTED RS. 88 LACS IN THE SHARES OF NARMADA SUGAR LIMITED. THE ASSESSING OFFICER OBSERVED THAT THE INVESTMENT IS FOR EARNING DIVIDED INCOME WHICH IS NO T CHARGEABLE TO TAX, THEREFORE, HE DISALLOWED 12% AND MAD E THE ADDITION OF RS.10,56,000/-. THE MATTER WAS CARRIED IN APPEAL TO THE LEARNED CIT(A) AND THE LEARNED CIT(A) HAS DISMISSED THE APPEAL OF THE ASSESSEE. NOW THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 3. DURING THE COURSE OF HEARING, THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSING OFFICER HAS IMPOSED PENALTY BUT THE SAME ADDITION HAS BEEN DELETED IN THE ASSESSMENT YEAR 2006-07 BY THE TRIBUNAL. MOREOVER, IN THE ASSESSMENT YEAR 2007-08 THE TRIBUNAL HAS RESTRICTED PREMIER INDUSTRIES ITA NO. 385/IND/2015 3 THE DISALLOWANCE OF INTEREST TO THE TUNE OF RS. 44,0 06/-. THEREFORE, NO PENALTY CAN BE IMPOSED. 4. ON THE OTHER HAND, THE LEARNED DR RELIED UPON THE ORDERS OF THE AUTHORITIES BELOW. 5. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE SI DES. LOOKING TO THE FACTS AND CIRCUMSTANCES OF THE CASE, WE FIND THAT THE ASSESSING OFFICER HAS MADE THE ADDITION ON TH E GROUND THAT THE ASSESSEE HAS MADE INVESTMENT OF RS. 88 LACS FOR EARNING DIVIDEND BUT NO INTEREST ON THIS INV ESTMENT WAS MADE BY THE ASSESSING OFFICER UNDER RULE 8D. WE FIND THAT THE LEARNED CIT(A) HAS RESTRICTED THE DISALLOWANCE OF INTEREST. MOREOVER, THE TRIBUNAL HAS ALREADY DISALLOWED 0.50% OF INTEREST INCOME ATTRIBUTABLE TO SUCH INCOME UNDER SECTION 14A READ WITH RULE 8D. THEREFORE, WE AR E OF THE VIEW THAT NO PENALTY CAN BE LEVIED. WE ACCORDINGLY DIRECT THE ASSESSING OFFICER TO DELETE THE PENALTY. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED . PREMIER INDUSTRIES ITA NO. 385/IND/2015 4 THE ORDER HAS BEEN PRONOUNCED IN OPEN COURT ON 7 NOVEMBER, 2016. SD SD ( ..!') (..) #$ (O.P.MEENA) (D.T.GARASIA) ACCOUNTANT MEMBER J UDICIAL MEMBER (') / DATED : 7 NOVEM BER, 2016. DN/ PREMIER INDUSTRIES ITA NO. 385/IND/2015 5