DCIT (OSD) CIR 3(1), MUMBAI V. ANGULAR TRADING P. LTD, MUMBAI

ITA 46/MUM/2011

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 8065 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 8 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-09-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 11-09-2014
• Assessment Year: 2007-2008
• Appeal Filed On: 04-01-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JEEVAN LAL LAVADIYA
• Keywords: Earning of tax free income
• Section: 14A

Judgement Text

, , , , , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES A, MUMBAI , ! , ' BEFORE SHRI JOGINDER SINGH, JM AND SHRI RAJENDRA, A M ITA NO.46/MUM/2011 (A.Y. 2007-08) DCIT, CIRCLE-3(1) ROOM NO.607, 6 TH FLOOR AAYAKAR BHAVAN MUMBAI-400 020. # # # # / VS. M/S. ANGULAR TRADING PVT. LTD. 111, MAKER BHAVAN NO.3 21, NEW MARINE LINES MUMBAI-400 020. ( %& / // / APPELLANT) ( '(%& / RESPONDENT) %& ) * ) * ) * ) * /APPELLANT BY : SHRI JEEVANLAL LAVADIYA '(%& ) * ) * ) * ) * /RESPONDENT BY : SHRI GOVIND JAVERI # ) +, / / / / DATE OF HEARING : 11.09.2014 -./ ) +, / DATE OF PRONOUNCEMENT : 11.09.2014 0 0 0 0 / / / / O R D E R PER JOGINDER SINGH (JM)/ : THE REVENUE IS AGGRIEVED BY THE IMPUGNED ORDER DATE D 25.10.10 OF THE LD. FIRST APPELLATE AUTHORITY HOLDING THAT 0.5% OF AVERAGE INVESTMENT IS REASONABLE QUANTUM OF DISALLOWANCES ATTRIBUTABLE TO EARN EXEMPT INCOME U/S. 14A OF THE ACT. 2. DURING HEARING OF THIS APPEAL SHRI GOVIND JHAVER I, LD. AR SUBMITTED THAT THE TRIBUNAL FOR ASSESSMENT YEAR 200 6-07 HAS DISMISSED THE APPEAL OF THE REVENUE IN THE CASE OF ASSESSEE I TSELF. THE ASSESSEE PRODUCED THE XEROX COPY OF THE ORDER DATED 6/2/2013 ITA ITA NO.46/MUM/2011 (A.Y. 20 07-08) 2 NO.9020/M/10 BY SUBMITTING THAT THE SAME VIEW MAY B E TAKEN. THE LD. DR HAD ALSO NO OBJECTION. 3. WE NOTE THAT IN AFORESAID ORDER DATED 6/2/13 IN THE CASE OF ASSESSEE ITSELF THE TRIBUNAL CONSIDERED THE DECISIO N IN GODREJ & BOYCE MFG. CO. LTD. VS. DCIT (328 ITR 81)(BOM.) ON IDENTICAL GROUND AND HELD THAT THE VIEW TAKEN BY THE LD. CIT(A) IS A POSSIBLE VIEW AND FINALLY DISMISSED THE APPEAL OF THE REVENUE . IN VIEW OF TH E FACTS WE FIND NO INFIRMITY IN THE CONCLUSION DRAWN BY THE LD. CIT(A) IN HOLDING THAT 0.5% OF AVERAGE INVESTMENT IS A REASONABLE QUANTUM OF DI SALLOWANCE ATTRIBUTABLE EARNING EXEMPT INCOME UNDER THE FACTS AND CIRCUMSTANCES AVAILABLE ON RECORD. 4. FINALLY THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF LD. REPRESENTATIVE FROM BOTH SIDES AT THE CONCLUSION OF THE HEARING ON 11 TH DAY OF SEPTEMBER, 2014 . 0 ) -./ 1 #2 11.09.2014 . ) 9 SD/- SD/- (RAJENDRA) (JOGINDER SINGH) ! ! ! ! / ACCOUNTANT MEMBER ! ! ! ! / JUDICIAL MEMBER MUMBAI; 1 # DATED : 11 TH SEPT. 2014. JV. ITA NO.46/MUM/2011 (A.Y. 20 07-08) 3 0 ) '+: ;:/+ 0 ) '+: ;:/+ 0 ) '+: ;:/+ 0 ) '+: ;:/+/ COPY OF THE ORDER FORWARDED TO : 1. %& / THE APPELLANT 2. '(%& / THE RESPONDENT. 3. < ( ) / THE CIT, MUMBAI. 4. < / CIT(A)-13, MUMBAI 5. :?9 '+# , , / DR, ITAT, MUMBAI 6. 9@ A / GUARD FILE. 0# 0# 0# 0# / BY ORDER, (:+ '+ //TRUE COPY// B BB B/ // /C C C C (DY./ASSTT. REGISTRAR) , , , , / ITAT, MUMBAI