Smt. Hema Ravichandar, Bangalore V. Asst.C.I.T., Bangalore

ITA 401/BANG/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 7472 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 7 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-10-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 22-06-2017
• Assessment Year: 2011-2012
• Appeal Filed On: 08-03-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUMER SINGH MEENA
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : BANGALORE BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI ARUN KUMAR GARODIA, ACCOUNTANT MEMBER ITA NO S . 400 TO 40 1 /BANG/201 6 ASSESSMENT YEAR S : 2008 09 & 20 1 1 1 2 SMT. HEMA RAVICHANDAR , NO. 17, AMMINI MOYENVILLE ROAD, LANGFORD TOWN, BANGALORE 560 025. PAN: AA SPR0583P VS. THE ACIT, CIRCLE 2 (3) (1), BANGALORE. APPELLANT RESPONDENT ASSESSEE BY : MISS KAVITHA P. , ADVOCATE REVENUE BY : SHRI SUMER SINGH MEENA, ADDL. C IT (DR) DATE OF HEARING : 1 2 . 10 .201 7 DATE OF PRONOUNCEMENT : 13 .10 .2017 O R D E R PER SHRI A.K. GARODIA, ACCOUNTANT MEMBER BOTH THESE APPEALS ARE FILED BY THE ASSESSEE AND TH ESE ARE DIRECTED AGAINST TWO SEPARATE ORDERS OF LEARNED CIT (A) 7, BENGALURU DATED 27.01.2016 FOR ASSESSMENT YEAR 2008 09 AND DATED 31.12.2015 FOR A. Y. 2011 12. BOTH THESE APPEALS WERE HEARD TOGETHER AND ARE BEING DIS POSED OF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2. IN BOTH THESE APPEALS, ALTHOUGH SEVERAL GROUNDS ARE RAISED BUT THE ONLY GRIEVANCE IS ABOUT DISALLOWANCE U/S 14A R.W.R. 8D R S. 13,66,167/- IN A. Y. 2008 09 AND RS. 46,83,958/- IN A. Y. 2011 12. 3. LEARNED AR OF THE ASSESSEE SUBMITTED THAT THE COPY OF CAPITAL ACCOUNT OF THE ASSESSEE FOR THE YEAR ENDED ON 31.03.2011 IS AVAILA BLE ON PAGE 45 OF THE PAPER BOOK FOR A. Y. 2011 12 AND AS PER THE SAME, RS. 5 4,36,625/- HAS BEEN DEBITED TO CAPITAL ACCOUNT FOR INVESTMENT ADVISORY FEES AND RS. 436,857/- ITA NOS. 400 TO 401/BANG/2016 PAGE 2 OF 3 HAS BEEN DEBITED TO CAPITAL ACCOUNT FOR DP CHARGES AND THEREFORE, TO THIS EXTENT, THE ASSESSEE HAS NOT CLAIMED DEDUCTION FOR EXPENSES INCURRED IN RESPECT OF INVESTMENT ACTIVITY WHICH IS AKIN TO DIS ALLOWANCE U/S 14A AND THEREFORE, ANY FURTHER DISALLOWANCE U/S 14A IS NOT JUSTIFIED. THE BENCH RAISED A QUERY ABOUT SUCH DEBIT IN CAPITAL ACCOUNT IN A. Y. 2008 09 AND IN REPLY, SHE SUBMITTED THAT THE COPY OF CAPITAL ACCOUNT FOR THAT YEAR IS AVAILABLE ON PAGE 59 OF THE PAPER BOOK FOR A. Y. 2008 09 BUT THERE IS NO SUCH DEBIT IN THAT YEAR. LEARNED DR OF THE REVENUE SUPPORTED THE ORDER OF CI T (A) IN BOTH YEARS. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIND T HAT IN A. Y. 2011 12, THE ASSESSEE HERSELF HAS MADE DISALLOWANCE IN RESPE CT OF EXPENSES INCURRED IN RESPECT OF INVESTMENT ACTIVITY BY DEBITING EXPEN SES TO CAPITAL ACCOUNT OF RS. 54,36,625/- FOR INVESTMENT ADVISORY FEES AND RS . 436,857/- FOR DP CHARGES TOTAL RS. 58,73,482/- WHICH IS MORE THAN 0. 5% OF AVERAGE INVESTMENT WORKED OUT BY THE A. O. AT RS. 46,83,958 /- AND DISALLOWED U/S 14A. HENCE, IN OUR CONSIDERED OPINION, MAKING ANY F URTHER DISALLOWANCE IN THIS YEAR U/S 14A IS NOT JUSTIFIED. HENCE, WE DELET E THE SAME. 5. BUT IN A. Y. 2008 09, NO SUCH AMOUNT IS DEBITED T O CAPITAL ACCOUNT AND HENCE, IT IS INFERRED THAT THE SAME IS DEBITED TO P & L ACCOUNT IN THAT YEAR AND THEREFORE, WE FIND NO INFIRMITY IN THE ORDER OF CIT (A) IN A. Y. 2008 09. 6. IN THE RESULT, APPEAL FILED BY THE ASSESSEE FOR A. Y. 2008 09 IS DISMISSED AND THAT FOR A. Y. 2011 12 IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE MENT IONED ON THE CAPTION PAGE. SD/- SD/- (SUNIL KUMAR YADAV) (ARUN KUMAR GARODIA) JUDICIAL MEMBER ACCOUNT ANT MEMBER BANGALORE, ITA NOS. 400 TO 401/BANG/2016 PAGE 3 OF 3 DATED, THE 13 TH OCTOBER, 2017. /MS/ COPY TO: 1. APP ELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY, INCOME TAX APPELLATE TRIBUNAL, BANGALORE.