Appeal details
Counselvise Citation
[2015] 140 COUNSELVISE.COM (IT) 99196 (ITAT-INDORE)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
6 month(s) 15 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
30-12-2015
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
SMC
Assessment Year
2010-2011
Appeal Filed On
15-06-2015
Judgement Text
ITA NO.458 OF 2015 ISHHAR OVERSEAS 1 IN THE INCOME TAX APPELLATE TRIBUNAL INDORE SMC BENCH, INDORE BEFORE SHRI B.C. MEENA, ACCOUNTANT MEMBER ITA NO. 458/IND/2015 A.Y. 2010-11 ISHHAR OVERSEAS LTD., INDORE PAN AABCI 0353 A :: APPELLANT VS JCIT, RANGE-3, INDORE :: RESPONDENT ASSESSEE BY SHRI TRIBHUVAN SACHDEVA RESPONDENT BY SHRI G.S. GAUTAM DATE OF HEARING 30.12.2015 DATE OF PRONOUNCEMENT 30.12.2015 O R D E R THIS APPEAL IS FILED BY THE ASSESSEE CHALLENGING T HE ORDER OF LD. CIT(A)-I, INDORE, DATED 13.1.2015. 2. GROUNDS RAISED BY THE ASSESSEE RELATE TO CONFIRM ATION OF ADDITIONS OF RS.1,14,844/- & RS.1,35,234/- ON ACCOU NT OF DISALLOWANCE U/S 14A. FACTS, IN BRIEF, ARE THAT ON PERUSAL OF THE P & L ACCOUNT, THE AO OBSERVED THAT THE ASSESSEE HAS MA DE INVESTMENTS IN SHARES AT RS.4,72,61,006/- SHOWING D IVIDEND INCOME AT RS.13,97,888/- AND HAS CLAIMED INTEREST OF RS.2, 72,186/-. THE ITA NO.458 OF 2015 ISHHAR OVERSEAS 2 ASSESSEE WAS ASKED TO CLARIFY THE SAME. THE ASSESSE E REPLIED THAT IT HAS MADE INVESTMENTS OUT OF INTEREST FREE FUNDS. HOWEVER, THE AO DID NOT ACCEPT THE PLEA OF THE ASSESSEE AND DISALLO WED THE PROPORTIONATE AMOUNT OF INTEREST AT RS.1,14,844/-. FURTHER, ON THE WORKING FURNISHED BY THE ASSESSEE, THE AO ALSO DISA LLOWED RS.1,35,234/- U/S 14A TOWARDS EXPENSES MADE FOR EAR NING DIVIDEND INCOME. AGAINST THE SAME, THE ASSESSEE APPROACHED T HE LD. CIT(A), WHO CONFIRMED THE ACTION OF THE AO. NOW, THE ASSESS EE IS BEFORE ME. 3. BEFORE ME, THE LEARNED COUNSEL FOR THE ASSESSEE CON TENDED THAT LD. REVENUE AUTHORITIES DID NOT CONSIDER THE S UBMISSIONS AND CONFIRMED THE ADDITIONS. THE AMOUNT OF INTEREST AT RS.1,14,844/- CONSIDERED FOR DISALLOWANCE BY THE AO U/S 14A IS NO T CORRECT AS NO MONEY WAS BORROWED FOR MAKING THE INVESTMENTS. THE ASSESSEE IS IN POSITION TO PROVE THAT INVESTMENTS WERE OUT OF I NTEREST FREE FUNDS. A PERUSAL OF AUDITED FINAL ACCOUNTS REVEAL THAT ASS ESSEE HAD SUFFICIENT INTEREST FREE FUNDS TO THE TUNE OF RS.9, 95,08,814/- AS ON 31.3.2010 AND RS.9,80,03,934/- AS ON 31.3.2009 WHE REAS INVESTMENTS WERE AT RS.4,72,61,006/- AND RS.4,70,43 ,706/-, RESPECTIVELY. SO FAR AS THE EXPENSES DISALLOWED AT RS.1,35,234/- IS ITA NO.458 OF 2015 ISHHAR OVERSEAS 3 CONCERNED, LEARNED COUNSEL FOR THE ASSESSEE, FURNIS HING THE BIFURCATION OF THE EXPENSES, SUBMITTED THAT THESE E XPENSES ARE NOTHING BUT GENERAL EXPENSES IN NATURE, WHICH HAVE NO NEXUS WITH INVESTMENTS/EXEMPTED INCOME AND TO COMPLY WITH STAT UTORY REQUIREMENTS, THE SAME WOULD HAVE BEEN INCURRED IN ANY CASE, EVEN IF THERE WOULD BE NO INCOME. ON THE OTHER HAND , LD. DR RELIED ON THE ORDERS OF THE REVENUE AUTHORITIES. 4. I HAVE CONSIDERED THE RIVAL SUBMISSIONS OF BOTH THE PARTIES AND GONE THROUGH THE MATERIAL AVAILABLE ON THE FILE. I FIND THAT IN VIEW OF THE FACTS AND SUBMISSIONS THEREOF, AS NARRATED ABOV E, THE MATTER REQUIRES RECONSIDERATION AT THE LEVEL OF THE AO. TH E ASSESSEE HAS FILED A PAPER BOOK RUNNING INTO 42 PAGES INCLUDING WRITTEN SUBMISSIONS, WHEREIN, THE RELEVANT DOCUMENTS HAVE B EEN ANNEXED. ASSESSEE HAS AGITATED THAT THE DOCUMENTS HAVE NOT B EEN APPRECIATED BY THE REVENUE AUTHORITIES IN THE PROPE R PERSPECTIVE. BEFORE ME, THE LEARNED COUNSEL FOR THE ASSESSEE HAS ALSO MADE SUBMISSION, AS NARRATED ABOVE. ALL THESE REQUIRE RE CONSIDERATION OF THE AO. THEREFORE, I SET ASIDE THE ORDERS OF THE RE VENUE AUTHORITIES. THE ISSUE IS RESTORED BACK TO THE FILE OF THE LD. AO WITH DIRECTION TO VERIFY THE CLAIM OF THE ASSESSEE IN VI EW OF THE ABOVE ITA NO.458 OF 2015 ISHHAR OVERSEAS 4 DISCUSSION. I AM OF THE VIEW THAT RELEVANT CASE-LAW S LIKE, DEWAS SOYA LTD VS. ACIT (2012) 20 ITJ 535 (ITAT, INDORE); GMR POWER CORPORATION LTD. VS. DCIT (2014) 50 TAXMAN.COM 393 (ITAT, BANGALORE); ACIT VS. CHAMPION COMMERCIAL CO. LTD. ( ITA NO.644/KOLKATA/2012, ORDER DATED 21.9.2012) ETC. MA Y ALSO BE TAKEN INTO CONSIDERATION BY THE AO WHILE DECIDING T HE MATTER. THE AO SHALL DECIDE THE ISSUE AFTER GIVING DUE OPPORTUN ITY OF HEARING TO THE ASSESSEE. THE ASSESSEE SHALL BE AT LIBERTY TO F ILE ANY FURTHER EVIDENCE, IF ANY, IN SUPPORT OF ITS CLAIM. THUS, T HE GROUNDS OF APPEAL OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES ONLY. ORDER WAS PRONOUNCED IN THE OPEN COURT ON 30.12.201 5. (B.C. MEENA) ACCOUNTANT MEMBER DATED : 30.12.2015 !VYS! COPY TO: APPELLANT / RESPONDENT / CIT(A) / CIT / DR, INDORE
