GAJANAN ENTERPRISES, MUMBAI V. ACIT CIRCLE 17(1), MUMBAI

ITA 4522/MUM/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 2186 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-08-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 18-07-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: CHAITANYA ANJARIA
• Keywords: Rule 8D
• Section: 14A; 201

Judgement Text

T HE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI BEFORE SHRI SHAMIM YAHYA ( A M) I.T.A. NO. 4522 /MUM/ 201 8 (ASSESSMENT YEAR 20 13 - 1 4 ) GAJANAN ENTERPRISES 4 TH FLOOR, RUSTOM BUILDING 29, VEER NARIMAN ROAD FORT, MUMBAI - 400 001. PAN : AAKFG7595A V S . A CIT CIRCLE - 17(1) MUMBAI. ( APPELLANT ) ( RESPONDENT ) ASSESSEE BY NONE DEPARTMENT BY SHRI CHAITANYA ANJARIA DATE OF HEARING 4 .7 . 201 9 DATE OF PRONOUNCEMENT 23.8 . 201 9 O R D E R THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST ORDER OF LE ARNED CIT - A DATED 25.5.2018 AND PERTAI NS TO ASSESSMENT YEAR 2013 - 14 . 2. T HE ISSUE RAISED IS THAT LEARNED CIT - A ERRED IN SUSTAINING THE DISALLOWANCE UNDER SECTION 14A, IGNORING THE FACT THAT ASSESSEE WAS HOLDING THE INVESTMENTS AS THE STOCK IN TRADE. 3. I HAVE HEARD THE LEARNED DEPARTMENTAL REPRESENTATIVE AND PERUSED THE RECORDS. NONE APPEARED ON BEHALF OF THE ASSESSEE DESPITE NOTICE. I NOTE THAT LEARNED CIT - A HAS DECIDED THE ISSUE AGAINST THE ASSESSEE BY PLACING RELIANCE UPON THE DECISION OF HONOURABLE AP EX COURT IN THE CASE OF MAXOPP INVESTMENT . T HE DECISION OF LEARNED CIT - A MAY BE GAINFULLY REFERRED AS UNDER : - THE SOLE ISSUE IS WHETHER WHEN SHARES ARE HELD IN FROM STOCK - IN - TRADE DISALLOWANCE UNDER SECTION 14A R.W. RULE 8D CAN BE MADE OR NOT. THE APPEL LANT MADE WRITTEN SUBMISSION WHICH INTER ALIA INCLUDES CERTAIN CASE DECISIONS. THIS INCLUDES PCIT VS . STATE BANK OF PATIALA [2017] 391 ITR 218 (P&H). HOWEVER IN MAXOPP INVESTMENT LTD VS CIT, NEW DELHI THE HON. SUPREME COURT IN CIVIL APPEAL 104 - 109 OF 2015 DATED 2 12.02.2018 HAS HELD THAT EVE N IF INVESTMENT IS HELD AS STOCK - IN - TRADE SECTION 14A APPLIES. HENCE THE ISSUE STAND SETTLED JUDICIALLY . 4. S INCE THE ABOVE ISSUE HAS BEEN DECIDED AGAINST THE ASSESS EE BY FOLLOWING THE LATEST DECISION OF THE HONOURABLE A PEX COURT, I DO NOT FIND ANY SUBSTANCE IN THE GROUND RAISED BY THE ASSESS EE. A CCORDINGLY THIS APPEAL FILED BY THE ASSESSEE STANDS DISMISSED . ORDER HAS BE EN PRONOUNCED IN THE COURT ON 23.8 . 201 9 . SD/ - (SH A MIM YAHYA ) ACCOUNTANT MEMBER MUMBAI ; DATED : 23.8 . 20 1 9 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. B Y ORDER, //TRUE COPY// ( ASSISTANT REGISTRAR ) PS ITAT, MUMBAI