DCIT CC 38, MUMBAI V. SHANTI SARUP RENIWAL, MUMBAI

ITA 4346/MUM/2011

• Counselvise Citation: 434619914 RSA 2011
• Duration Of Justice: 10 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-04-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2007-2008
• Appeal Filed On: 30-05-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B JAYA KUMAR
• Assessee Lawyers: REEPAL G TRALSHAWALA
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH E,MUMBAI BEFORE SHRI P.M. JAGTAP (AM) & SHRI VIVEK VARMA (JM ) I.T.A. NO.4346/MUM/2011 (A.Y. 2007-08) DCIT, CC-38, R.NO.32(1), GR.FLOOR, AAYKAR BHAVAN, M.K.ROAD, MUMBAI-400 020. VS. SHRI SHANTI SARUP RENIWAL, 302, SYLVERTON, 102, WODEHOUSE RD., COLABA, MUMBAI-400 005. PAN: ADMPR3332D APPELLANT RESPONDENT APPELLANT BY SHRI B. JAYA KUMAR. RESPONDENT BY SHRI R EEPAL G. TRALSHAWALA. DATE OF HEARING 02 - 0 4 - 201 2 DATE OF PRONOUNCEMENT 09-04-2012 O R D E R PER VIVEK VARMA , JM : THE APPEAL HAS BEEN FILED BY THE REVENUE AGAINST TH E ORDER OF THE CIT(A) 41, MUMBAI, DATED 19/04/2011. THE REVENUE HAS TAKEN THE GROUND WHETHER CIT(A) IS JUSTIFIED IN CHANGING THE DIRECTIONS GIVEN BY THE P REDECESSOR CIT(A) IN THE EFFECT GIVING ORDER. 2. THE FACTS ARE THAT AGAINST THE ASSESSMENT ORDER, THE ASSESSEE FILED AN APPEAL BEFORE THE CIT(A), WHEREIN CIT(A) IN ORDER BEARING NO. CIT(A)/41/DCCC-38/IT 257/09-10 DATED 14/12/2009 GAVE DIRECTIONS TO THE A O, SAYING, ......IN VIEW OF THE 2 ITA NO.4346/M/2011 SHANTI SARUP RENIWAL FACT, THE AO IS DIRECTED TO WORK OUT THE DISALLOWAN CE U/S 14A R.W. RULE 8D AND ADD BACK TO THE INCOME OF THE ASSESSEE AFTER ALLOWING O PPORTUNITY TO THE ASSESSEE OF BEING HEARD AND INCOME OF THE APPELLANT MAY BE ENHA NCED ACCORDINGLY AS PER LAW (RELEVANT PORTION ONLY EXTRACTED FROM ORDER GIVING EFFECT, DATED 05/04/2010). 3. THE AO GIVING EFFECT TO THE DIRECTION APPLIED TH E FORMULA AS PRESCRIBED UNDER RULE 8D AND RELYING ON THE SPECIAL BENCH DECISION I N DAGA MANAGEMENT (P) LTD., WHICH WAS AVAILABLE WITH THE AO. AT THAT POINT OF T IME, THE DECISION OF BOMBAY HIGH COURT IN GODREJ & BOYCE MANUFACTURING CO. LTD. WAS NOT THERE. 4. THE MATTER CAME UP IN APPEAL BEFORE ITAT IN THE ASSESSEES OWN CASE AND OTHER CASES IN ITAS NO. 453,454,456/M/2010 & 458 & 455/M/2010. DURING THE CONTINUANCE OF THESE APPEALS, HONBLE BOMBAY HIGH C OURT CAME UP WITH THE DECISION IN GODREJ & BOYCE MANUFACTURING CO. LTD. V/S DCIT, REPORTED IN 328 ITR 81 (BOM), WHEREIN THE HONBLE BOMBAY HIGH COURT HELD THAT THE OPERATION OF RULE 8D SHALL ONLY BE FROM 2008-09 ONWARDS, AND NOT BEING RETROSPECTIV E. 5. SINCE THE ISSUE IS NOW SETTLED BY THE HONBLE BO MBAY HIGH COURT, THE CIT(A) HAS GIVEN NEW DIRECTIONS TO THE AO, BASED ON THE DE CISION OF HONBLE BOMBAY HIGH COURT. AT THIS MOMENT WE DO NOT FEEL NECESSARY TO D ISTURB THE PRESENT FINDINGS AND DIRECTIONS AS GIVEN BY THE CIT(A) IN THE IMPUGNED O RDER. WE THEREFORE, UPHOLD THE SAME. 6. THE APPEAL FILED BY THE REVENUE IS DISMISSED. 3 ITA NO.4346/M/2011 SHANTI SARUP RENIWAL ORDER PRONOUNCED ON THE 09TH DAY OF APRIL, 2 012. SD/- SD/- (P.M. JAGTAP ) (VIVEK VARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI: 09TH APRIL , 2012. NG: COPY TO : 1. DEPARTMENT. 2.ASSESSEE. 3 CIT(A)-41,MUMBAI. 4 CIT,CENTRAL III, MUMBAI. 5.DR,E BENCH,MUMBAI. 6.MASTER FILE. (TRUE COPY) BY ORDER, ASST.REGISTRAR, ITAT, MUMBAI. 4 ITA NO.4346/M/2011 SHANTI SARUP RENIWAL DETAILS DATE INITIALS DESIGNAT ION 1. DRAFT DICTATED ON 02-04-2012 SR.PS/ 2. DRAFT PLACED BEFORE AUTHOR 03-04-2012 SR.PS/ 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER JM/ AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS/ 6. KEPT FOR PRONOUNCEMENT ON SR.PS/ 7. FILE SENT TO THE BENCH CLERK SR.PS/ 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 9. DATE ON WHICH FILE GOES TO THE AR 10. DATE OF DISPATCH OF ORDER