DSP BLACK ROCK INVESTMENT MANGERS P. LTD, MUMBAI V. DCIT CIR 3(1), MUMBAI

ITA 4685/MUM/2009

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 4027 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-10-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 21-10-2010
• Assessment Year: 2006-2007
• Appeal Filed On: 10-08-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JI TENDRA YADAV
• Keywords: Rule 8D; Set aside
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES D, MUMBAI BEFORE SHRI R.S.SYAL, AM AND SHRI VIJAY PAL RAO, JM ITA NO.4685/MUM/2009 : ASST. YEAR 2006-2007 M/S.DSP BLACKROCK INVESTMENT MANAGERS PRIVATE LIMITED (FORMERLY DSP MERRILL LYNCH FUND) 11 TH FLOOR, WEST WING, TULSIANI CHAMBERS NARIMAN POINT, MUMBAI 400 021. PA NO.AAACD3069K. VS. THE DY.COMMISSIONER OF INCOME-TAX CIRCLE 3(1) MUMBAI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI HARSH SHAH RESPONDENT BY : SHRI JITENDRA YADAV O R D E R PER R.S.SYAL, AM : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY THE COMMISSIONER OF INCOME-TAX (APPEALS) ON 04.05.2009 IN RELATION TO THE ASSESSMENT YEAR 2006-2007. 2. THE ONLY GROUND RAISED IN THIS APPEAL IS AGAINST THE DISALLOWANCE OF CLAIM OF RS.7,43,461 U/S.14A OF THE ACT. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE RELEVANT MATERIAL ON RECORD. IT IS NOTED THAT THE QUESTION OF MAKING DIS ALLOWANCE U/S 14A IS NO MORE RES INTEGRA IN VIEW OF THE RECENT JUDGMENT DATED 12.08.2010 OF THE HONBLE BOMBAY HIGH COURT IN GODREJ& BOYCE LIMITED VS. ACIT HOLDING THAT THE PROVISIONS OF SECTION 14A ARE APPLICABLE IN SUCH CIRCUMSTANCES AN D THE DISALLOWANCE HAS TO BE WORKED OUT BY THE AO ON SOME REASONABLE BASIS AND N OT RULE 8D. UNDER SUCH CIRCUMSTANCES, WE SET ASIDE THE IMPUGNED ORDER AND RESTORE THE MATTER TO THE FILE OF THE AO FOR DECIDING THE QUANTUM OF DISALLOWANCE AS PER THE AFORENOTED JUDGMENT, AFTER ALLOWING A REASONABLE OPPORTUNITY OF BEING HE ARD TO THE ASSESSEE. ITA NO.4685/MUM/2009 M/S.DSP BLACKROCK INVESTMENT MANAGERS PVT.LTD. 2 4. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATIST ICAL PURPOSES. ORDER PRONOUNCED ON THIS 27 TH DAY OF OCTOBER, 2010. SD/- SD/- ( VIJAY PAL RAO ) ( R.S.SYAL ) JUDICIAL MEMBER ACC OUNTANT MEMBER MUMBAI : 27 TH OCTOBER, 2010. DEVDAS* COPY TO : 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT CONCERNED 4. THE CIT(A) - XXVIII, MUMBAI. 5. THE DR/ITAT, MUMBAI. 6. GUARD FILE. TRUE COPY. BY ORDER ASSISTANT REGISTRAR, ITAT, MUMBAI.