LOGICA TECHNOSYS P. LTD, MUMBAI V. ACIT (OSD) -8(3), MUMBAI

ITA 4681/MUM/2009

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 3474 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 4 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-12-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 20-12-2010
• Assessment Year: 2006-2007
• Appeal Filed On: 10-08-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES, G, MUMBAI BEFORE SHRI J SUDHAKAR REDDY, ACCOUNTANT MEMBER AND SHRI VIJAY PAL RAO, JUDICIAL MEMBER ITA NO. 4681/MUM/2009 (ASSESSMENT YEARS: 2006-07) LOGICA TECHNOSYS P LTD FLAT NO.113, SIDDHIVINAYAK CO-OPERATIVE HSG. SOCIETY LIMITED SHRADHNAND ROAD,VILE PARLE(E), MUMBAI-400057 PAN:AAACL6534F . APPELLANT VS ACIT (OSD)-(8)3) 2 ND FL. AAYAKAR BHAVAN M K ROAD, MUMBAI-400020 RESPONDENT APPELLANT BY : SHRI PARAS SAVLA RESPONDENT BY : SHRI VIJAY SHANKAR O R D E R PER VIJAY PAL RAO,JM THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 29.06.2009 OF THE LEARNED CIT(A)-XXIX, MUMBAI FOR THE ASSESSMENT YEAR 2006-07. 2. ONLY EFFECTIVE GROUND RAISED BY THE ASSESSEE IN THIS APPEAL READS AS UNDER : 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) ERRED IN CONFIRMING THE ADDITION O F RS.4,04,820/- U/S 14A OF THE IT ACT, 1961 ITA NO. 4681/MUM/2009 (ASSESSMENT YEARS: 2006-07) 2 3. WE HAVE HEARD THE LEARNED AR AS WELL AS THE LEAR NED DR AND CONSIDERED THE RELEVANT RECORD. THE ASSESSEE RE CEIVED A DIVIDEND INCOME OF RS.63,097/- DURING THE YEAR AN D CLAIMED EXEMPTION U/S 10(34) OF THE ACT. THE AO DISALLOWE D AN AMOUNT OF RS.4,04,820/- BY INVOKING THE PROVISIONS OF SECTION 14A R.W.RULE 8D BY RELYING UPON THE DECISION OF THI S TRIBUNAL IN THE CASE OF M/S DAGA MANAGEMENT PVT LTD. ON A PPEAL, THE LEARNED CIT(A) UPHELD THE ORDER OF THE AO. 3.1 AT THE OUTSET, WE NOTE THAT THIS ISSUE HAS BEEN DECIDED BY THE HON. JURISDICTIONAL HIGH COURT IN THE CASE OF GODREJ AND BOYCE MFT. P.LTD V/S CIT REPORTED IN 234 DTR (B OM)-1 WHEREIN IT HAS BEEN HELD RULE 8D IS NOT APPLICABL E FOR THE YEAR UNDER CONSIDERATION AND ALSO NOT APPLICABLE RETROSPECTIVELY. HOWEVER, THE DISALLOWANCE U/S 1 4A HAS TO BE MADE BY ADOPTING THE REASONABLE BASIS BY THE AO . RESPECTFULLY FOLLOWING THE DECISION OF THE HON. JUR ISDICTIONAL IN THE CASE OF GODREJ AND BOYCE MFT. P.LTD V/S CIT (SUPRA) WE REMIT THIS ISSUE TO THE RECORD OF THE AO TO DETERM INE THE EXPENDITURE TO BE DISALLOWED ON APPORTIONMENT BASI S BY APPLYING THE REASONABLE METHOD AFTER CONSIDERING TH E RELEVANT FACTS AND CIRCUMSTANCES OF THE CASE, IN THE LIGHT O F THE DECISION OF THE HON. JURISDICTIONAL HIGH COURT IN T HE CASE OF GODREJ AND BOYCE MFT. P.LTD V/S CIT (SUPRA). ITA NO. 4681/MUM/2009 (ASSESSMENT YEARS: 2006-07) 3 4. IN THE RESULT, THE APPEAL BY THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES.. ORDER PRONOUNCED IN THE OPEN COURT ON 23.12.2010 SD SD (J.SUDHAKAR REDDY) (V IJAY PAL RAO) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, ON THIS 23 RD DAY OF DEC 2010 SRL:221210 COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT CONCERNED 4. CIT(A) CONCERNED 5. DR CONCERNED BENCH BY ORDER TRUE COPY ASSTT. REGISTRAR, ITAT, MUMBAI