Gangadhar Narsingdas Agrawal, Margao V. Income Tax Officer, Ward - 2, , Margao

ITA 444/PAN/2018

AI Insights

The case involves Gangadhar Narsingdas Agrawal, the appellant, contesting an order from the CIT(A)-1, Panaji, which enhanced the disallowance of expenses by Rs.34,33,048 under section 14A read with Rule 8D(2)(iii) of the Income Tax Act for the assessment year 2012-13. The primary contention was that the expenses considered for enhancement were directly related to taxable income and should not have been included in the disallowance concerning exempt income. The Tribunal found that the CIT(A) did not adequately discuss this issue and thus remitted the matter back for a fresh assessment.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 136929 (ITAT-PANAJI)
• Duration Of Justice: 4 year(s) 7 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-07-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: WT(D)
• Next Hearing Date: 06-07-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 21-11-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH, PANAJI (AT e-Court, PUNE) BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER आयकर अपील सं. / ITA No.444/PAN/2018 नधा रण वष / Assessment Year : 2012-13 Gangadhar Narsingdas Agrawal, Anand Bhavan, Old station road, Margao – 403601 PAN : ABDPA2725L Vs. ITO, Ward-2, Margao Appellant Respondent आदेश / ORDER PER R.S. SYAL, VP : This appeal by the assessee is directed against the order 14-09-2018 passed by the CIT(A)-1, Panaji in relation to the assessment years 2012-13. 2. The only issue raised in this appeal is against the enhancement of addition by Rs.34,33,048/- u/s.14A read with Rule 8D(2)(iii) of the Act. 3. We have heard the rival submissions and gone through the relevant material on record. It is seen that the ld. CIT(A) has recorded on page 18 onwards of his order that disallowance u/s.14A Assessee by Shri Ashok A. Kulkarni Revenue by Shri N. Shrikanth Date of hearing 07-07-2023 Date of pronouncement 11-07-2023 ITA No.444/PAN/2018 Gangadhar N. Agrawal 2 read with Rule 8D(2)(iii) was liable to be enhanced by sum of Rs.34,33,048/-. He tabulated the direct expenses and administrative expenses forming part of the Profit and loss account to reach the conclusion that the disallowance was to be enhanced by Rs.34,33,048/-. The ld. AR submitted that the expenses taken out by the ld. CIT(A) for enhancing the addition were directly in relation to the taxable income and hence, could not have been so considered for the purposes of making disallowance u/s.14A qua the exempt income. Without going into further details and in the absence of any discussion made by the ld. CIT(A) on this score, we are of the considered opinion that the ends of justice would meet adequately if the impugned order on this score is set-aside and the matter is remitted to the file of the ld. CIT(A). We order accordingly and direct him to decide this issue afresh as per law after allowing a reasonable opportunity of hearing to the assessee. 4. In the result, the appeal is allowed for statistical purposes. Order pronounced in the Open Court on 11 th July, 2023. Sd/- Sd/- (PARTHA SARATHI CHAUDHURY) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; िदनांक Dated : 11 th July, 2023 सतीश ITA No.444/PAN/2018 Gangadhar N. Agrawal 3 आदेश की ितिलिप अ ेिषत/Copy of the Order is forwarded to: 1. अपीलाथ / The Appellant; 2. थ / The respondent 3. The CIT-1, Panaji 4. DR, ITAT, Panaji Bench, Panaji 5. गाड फाईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune Date 1. Draft dictated on 07-07-2023 Sr.PS 2. Draft placed before author 10-07-2023 Sr.PS 3. Draft proposed & placed before the second member JM 4. Draft discussed/approved by Second Member. JM 5. Approved Draft comes to the Sr.PS/PS Sr.PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *