DEEPEN A. PAREKH, MUMBAI V. DCIT CEN CIR 20, MUMBAI

ITA 4651/MUM/2013

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 0709 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 11 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-05-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Next Hearing Date: 10-02-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 14-06-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: LOVE KUMAR
• Keywords: Opportunity of being heard; Earning of tax free income
• Section: 143(3); 14A

Judgement Text

D IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, MUMBAI BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI R.C. SHARMA, ACCOUNTANT MEMBER ./ I.T.A. NO. 4651 /MUM/2013 ( / ASSESSMENT YEAR : 2010-11 SHRI DEEPEN A. PAREKH, 601 AUTO COMMERCE HOUSE, NANA CHOWK, KENNEDY BRIDGE, MUMBAI 400 007. / VS. D.C.I.T. CENTRAL CIR. 20, MUMBAI. ./ PAN : AAIPP6817G ( / APPELLANT ) .. ( / RESPONDENT ) A PPELLANT BY NONE R E SPONDENT BY : SHRI LOVE KUMAR (D.R.) / DATE OF HEARING : 26-05-2015 / DATE OF PRONOUNCEMENT : 28-05-2015 [ !' / O R D E R PER R.C. SHARMA, A.M . : THIS IS AN APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY THE LD. CIT(A) -39,, MUMBAI DATED 08-03-2 013 FOR THE A.Y. 2010-11 IN THE MATTER OF ORDER PASSED U/S 143(3) OF THE INC OME TAX ACT, 1961. 2. AT THE TIME OF HEARING, NOBODY FROM ASSESSEES SIDE HAS APPEARED INSTEAD OF GIVING NOTICES TO THE ASSESSEE NOR ANY A DJOURNMENT PETITION WAS FILED. THE BENCH, THEREFORE DECIDED TO DISPOSE OF T HE APPEAL AFTER HEARING THE LD. D.R. AND CONSIDERING THE MATERIAL PLACED ON REC ORD. 3. IN THIS APPEAL, THE ASSESSEE IS AGGRIEVED FOR T HE DISALLOWANCE MADE U/S 14A READ WITH RULE 8-D OF THE INCOME TAX RULES, 196 2. ITA 4651/M/13 2 4. FROM THE RECORD WE FOUND THAT THE ASSESSEE HAS C LAIMED TOTAL EXPENSES OF RS. 2,62,926/ IN ITS P&L ACCOUNT AGAINST WHICH T HE A.O. HAS MADE TOTAL DISALLOWANCE U/S 14A AT RS. 5,47,382/-. 5. WE FIND THAT THE ISSUE UNDER CONSIDERATION IS CO VERED BY THE DECISION OF THE TRIBUNAL IN THE CASE OF GROUP MEMBER VIDE ORDER DATED 27-05-2015 IN ITA NO. 3308/MUM/2013 FOR A.Y. 2009-10 IN WHICH THE TRI BUNAL HELD AS UNDER:- 5. WE HAVE CONSIDERED THE CONTENTIONS OF THE LD. D. R. AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW AND FOU ND THAT THE ASSESSEE HAS DEBITED TOTAL EXPENDITURE OF RS. 1,94,511/-. TH E DISALLOWANCE U/S 14A READ WITH RULE 8-D IS BEING MADE IN RESPECT OF EXPENDITURE ATTRIBUTABLE TO EARNING OF EXEMPT INCOME. HOWEVER, IN NO CASE THE DISALLOWANCE CAN BE MORE THAN THE EXPENDITURE DEBIT ED AND CLAIMED BY THE ASSESSEE. IN THIS CASE, THE A.O. HAS DISREGARDE D THE TOTAL EXPENDITURE DEBITED TO THE P&L ACCOUNT AND WORKED OUT THE DISAL LOWANCE AT 25% OF THE DIVIDEND INCOME AS WELL AS DISALLOWANCE UNDER R ULE 8D(2)(III). WE DO NOT FIND ANY MERIT IN THE ORDER OF THE A.O. AND ACC ORDINGLY THE SAME IS SET ASIDE AND REMIT THE MATTER BACK TO THE FILE OF THE A.O. TO DECIDE THE SAME AFRESH AFTER GIVING DUE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 6. AS THE FACTS AND CIRCUMSTANCES OF THE ISSUE UNDE R CONSIDERATION ARE SAME, RESPECTFULLY FOLLOWING THE ORDER OF THE TRIBU NAL DATED 27-05-2015 (SUPRA), THE MATTER IS RESTORED BACK TO THE FILE OF THE A.O. FOR DECIDING THE SAME IN TERMS OF THE DIRECTIONS GIVEN BY THE TRIBUN AL. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED IN PART FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 28-05-2015. !' # $% &! ' 28-05-2015 ( ) SD/- SD/- (D. MANMOHAN) (R.C. SHARMA) VICE PRESIDENT ACCOUNTANT MEMBER $ 4 MUMBAI ; &! DATED 28-05-2015 ITA 4651/M/13 3 .5../ RK RKRK RK , SR. PS ! '#$% &%# / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. 6 () / THE CIT(A) 39, MUMBAI 4. 6 / CIT -CENT, 11, MUMBAI 5. 9:( 55;< , ;< , $ 4 / DR, ITAT, MUMBAI D BENCH 6. (>? @ / GUARD FILE. ' / BY ORDER, 9 5 //TRUE COPY// (/') * ( DY./ASSTT. REGISTRAR) , $ 4 / ITAT, MUMBAI