GAWANDE CONSULATNATS P. LTD, MUMBAI V. ACIT (OSD) 2(1), MUMBAI

ITA 4405/MUM/2010

• Counselvise Citation: 440519914 RSA 2010
• Duration Of Justice: 1 year(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-06-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: G
• Assessment Year: 2007-2008
• Appeal Filed On: 28-05-2010
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: A K NAYAK PER R K
• Keywords: Opportunity of being heard
• Section: 14A

Judgement Text

1 ITA NO.4405/MUM/2010 M /S GWANDE CONSULTANTS P. LTD. IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI G BENCH MUMBAI BENCHES, MUMBAI BEFORE SHRI D K AGRAWAL, JM & SHRI R K PANDA, AM ITA NO. 4405/MUM/2010 (ASST YEAR 2007-08) M/S GAWANDE CONSULTANTS PVT. LIMITED, 801, MAHALAXMI CHAMBERS, 22, BHULABHAI DESAI ROAD, MUMBAI 400 026 PAN AABCG 3865F VS ACIT (OSD) 2(1), MUMBAI. (APPELLANT) (RESPONDENT) APPELLANT BY NONE RESPONDENT BY SHRI A.K. NAYAK PER R K PANDA, AM THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER DATED 30.3.2010 OF THE CIT(A)- 4, MUMBAI RELATING TO ASS ESSMENT YEAR 2007-08. 2. DESPITE SERVICE OF NOTICE, NONE APPEARED ON BEHA LF OF THE ASSESSEE WHEN THE NAME OF THE ASSESSEE WAS CALLED AT THE TIM E OF HEARING NOR ANY ADJOURNMENT APPLICATION SEEKING ADJOURNMENT OF THE CASE WAS FILED FROM THE ASSESSEE. SINCE THE ISSUE RAISED IN THE GROUND IS A COVERED MATTER, THEREFORE, WE DISPOSE OF THE APPEAL ON THE BASIS OF MATERIAL A VAILABLE ON RECORD AND AFTER HEARING THE LD. D.R. 2.1 THE ASSESSEE IN THE GROUNDS OF APPEAL HAS CHALL ENGED THE ORDER OF THE LD. CIT(A) IN MAKING THE DISALLOWANCE U/S 14 A R.W. RULE 8D AT ` 27,14,041/-. 2 ITA NO.4405/MUM/2010 M /S GWANDE CONSULTANTS P. LTD. 2.3 AFTER HEARING THE LD. D.R. AND ON PERUSAL OF TH E ORDERS OF THE AUTHORITIES BELOW, WE FIND THE ASSESSEE COMPANY IS ENGAGED IN THE BUSINESS OF CONSULTANCY SERVICES AND ALSO INTRA-DAY TRADING OF SHARES, DERIVATIVES ETC. THE ASSESSEE HAS CLAIMED DIVIDEND INCOME OF ` 4,81,476/- AND LONG TERM CAPITAL GAINS OF ` 23,90,044/- AS EXEMPT. THE A.O. FOLLOWING THE DEC ISION OF SPECIAL BENCH OF THE TRIBUNAL IN THE CASE OF DAGA C APITAL MANAGEMENT PVT. LTD. DISALLOWED AN AMOUNT OF ` 27,14,041/- U/S 14A OF THE I.T. ACT WHICH WAS UPHELD BY THE LD. CIT(A). IN OUR OPINION, S INCE THE ASSESSMENT YEAR INVOLVED IN THE INSTANT CASE IS 2007-08 AND RULE 8D IS APPLI CABLE ONLY PROSPECTIVELY I.E. FROM A.Y. 2008-09, THEREFORE, THE MATTER NEEDS TO GO BACK TO THE FILE OF THE A.O. FOR FRESH ADJUDICATION IN THE LIGHT OF THE LATEST DECIS ION OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF GODREJ BOYCE MFG. CO. LTD. VS. DCIT REPORTED IN 328 ITR 81. WE, THEREFORE, RESTORE THE ISSUE TO THE FILE OF THE A.O. FOR FRESH ADJUDICATION IN THE LIGHT OF THE DECISION CIT ED SUPRA AND IN ACCORDANCE WITH LAW AFTER GIVING DUE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. WE HOLD AND DIRECT ACCORDINGLY. THE GROUND RAISED BY THE ASSESSEE IS ACCORDINGLY ALLOWED FOR STATISTICAL PURPOSE. 3. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED ON 8 TH JUNE, 2011. SD/- SD/- ( D K AGRAWAL ) JUDICIAL MEMBER ( R K PANDA ) ACCOUNTANT MEMBER PLACE: MUMBAI : DATED: 8 TH JUNE, 2011 3 ITA NO.4405/MUM/2010 M /S GWANDE CONSULTANTS P. LTD. RK COPY FORWARDED TO: 1 APPELLANT 2 RESPONDENT 3 CIT (A), 4 MUMBAI 4 CIT -2, MUMBAI 5 DR BENCH G 6 MASTER FILE /TRUE COPY/ BY ORDER DY /AR, ITAT, MUMBAI 4 ITA NO.4405/MUM/2010 M /S GWANDE CONSULTANTS P. LTD. DRAFT DICTATED ON 2.6.11,6.6.11 SR PS 2 DRAFT PLACED BEFORE AUTHOR ON 3.6.11,6.6.11 SR PS 3 DRAFT PROPOSED & PLACE BEFORE THE 2 ND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY 2 ND MEMBER JM/AM 5 APPROVED DRAFT COMES TO THE SR PS SR.PS 6 KEPT FOR PRONOUNCEMENT ON SR PS 7 FILE SENT TO THE BENCH CLERK SR PS 8 DATE ON WHICH FILE GOES TO THE HEAD CLERK 9 DATE ON WHICH FILE GOES TO THE AR 10 DATE OF DESPATCH SR PS