KLT AUTOMOTIVE AND TUBULAR PRODUCTS LTD, MUMBAI V. DCIT 12(3)(1)ERSTWHILE, MUMBAI

ITA 3958/MUM/2017

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 3910 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-10-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Assessment Year: 2011-2012
• Appeal Filed On: 30-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: HEMANT BAHEDIA
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL H BENCH, MUMBAI BEFORE S/ SHRI B.R.BASKARAN (AM) & AMARJIT SINGH (JM) I.T.A. NO. 3958 /MUM /20 1 7 (ASSESSMENT YEAR 20 11 - 12 ) M/S. KLT AUTOMOTIVE AND TUBULAR PRODUCTS LIMITED B - 601, ELEGANT BUSINESS PARK, MIDC ROAD NO. 2 J.B. NAGAR, ANDHERI EAST MUMBAI - 400 059. PAN : AAACT3895R VS. DY. CIT - 12(3)(1) (ERSTWHILE) NOW - ACIT 10(1)(2) ROOM NO. 651 AAYAKAR BHAVAN M.K. ROAD MUMBAI - 400 020. ( APPELLANT ) ( RESPONDENT ) ASSESSEE BY SHRI HEMANT BAHEDIA DEPARTMENT BY SHRI MANOJ KUMAR SINGH DATE OF HEARING 30 .10 . 201 8 DATE OF PRONOUNCEMENT 30 . 10 . 201 8 O R D E R PER B.R. BASKARAN (A M) : - THE ASSESSEE HAS FILED THIS APPEAL CHALLENGING THE ORDER DATED 2.2.2017 PASSED BY THE LEARNED CIT(A) - 20, MUMBAI AND IT RELA TES TO A.Y. 2011 - 12. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS : - (A) DISALLOWANCE MADE U/S. 14A OF THE ACT. (B) DISALLOWANCE OF REVENUE EXPENSES. 2. AT THE TIME OF HEARING LEARNED AR DID NOT PRESS GROUND RELATING TO DISALLOWANCE OF REVENUE EXPENSES . H ENCE THE GROUNDS RELATING THERETO ARE DISMISSED AS NOT PRESSED. 3. THE ASSESSEE IS ENGAGED IN THE BUSINESS OF MANUFACTURE AND TRADING OF AUTOMOTIVE PRODUCTS SUCH AS CHASSIS, PRECISION TUBES ETC. D URING THE YEAR UNDER CONSIDERATION, THE ASSESSEE RECEIVED DIVIDEND I NCOME OF ` 14,607/ - AND CLAIMED THE SAME AS EXEMPT. THE ASSESSEE DID NOT MAKE ANY DISALLOWANCE U/S. 14A OF THE ACT. THE ASSESSING OFFICER COMPUTED DISALLOWANCE AS PER RULE 8D OF M/S. KLT AUTOMOTIVE AND TUBULAR PRODUCTS LIMITED 2 THE I.T. RULES AT ` 23.99 LAKHS AND THE SAME WAS CONFIRMED BY THE LEARNED CIT( A). 4. AT THE TIME OF HEARING, LEARNED AR SUBMITTED THAT THE ASSESSING OFFICER HAS CONSIDERED ALL INVESTMENTS FOR THE PURPOSES OF COMPUTING DISALLOWANCE. HE SUBMITTED THAT THE ASSESSING OFFICER SHOULD HAVE CONSIDERED ONLY THOSE INVESTMENTS WHICH HAVE YIEL DED DIVIDEND INCOME FOR THE PURPOSE OF DISALLOWANCE U/S. 14A OF THE ACT. 5. WE HEARD LEARNED DR AND PERUSED THE RECORD. WE NOTICED THAT THE CONTENTIONS RAISED BY THE ASSESSEE ARE SUPPORTED THE DECISION RENDERED BY THE SPECIAL BENCH OF THE TRIBUNAL IN T HE CASE OF ACIT VS. VIREET INVESTMENT PVT LTD (ITAT DELHI) (SPECIAL BENCH) (ITA NO. 502/DEL/2012 DATED 16.6.2017 . WE FURTHER NOTICE THAT THE OWN FUNDS AVAILABLE WITH THE ASSESSEE IS MORE THAN THE VALUE OF INVESTMENTS AND WE NOTICE THAT THE DECISION RENDER ED BY JURISDICTIONAL BOMBAY HIGH COURT IN THE CASE OF HDFC BANK LTD (366 ITR 505) HAS NOT BEEN APPLIED BY THE AO. A CCORDINGLY, WE SET ASIDE THE ORDER PASSED BY THE LEARNED CIT(A) ON THIS ISSUE AND RESTORE THE SAME TO THE FILE OF THE ASSESSING OFFICER WITH THE DIRECTION TO RECOMPUTE DISALLOWANCE IN THE LIGHT OF DISCUSSIONS MADE SUPRA. 6. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS TREATED AS PARTLY ALLOWED. ORDER HAS BE E N PRONOUNCED IN THE COURT ON 30 . 10 .201 8 . SD/ - SD/ - (AMARJIT SINGH ) ( B.R. BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED : 30 / 10 / 20 1 8 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT M/S. KLT AUTOMOTIVE AND TUBULAR PRODUCTS LIMITED 3 3. THE CIT(A) 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// ( SENIOR PRIVATE SECRETARY ) PS ITAT, MUMBAI