Appeal Details
Counselvise Citation
[2017] 126 COUNSELVISE.COM (IT) 8002 (ITAT-MUMBAI)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
1 year(s) 10 month(s) 19 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
20-12-2017
Appeal Filed By
Assessee
Order Result
Partly Allowed
Bench Allotted
Not Allotted
Assessment Year
2012-2013
Appeal Filed On
01-02-2016
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH G , MUMBAI BEFORE SHRI RAJENDRA , HON'BLE ACCOUNTANT MEMBER AND SHRI C.N. PRASAD, HON'BLE JUDICIAL MEMBER ITA NO . 470 /MUM/201 6 (A.Y: 2012 - 13 ) M/S. YATISH TRADING COMPANY PVT. LTD. 4 TH FLOOR, SADHANA HOUSE, 570, PANDURANG BUDHKAR MARG, WORLI, MUMBAI 400 018 PAN NO: AAACY 0189 P V . DCIT 1(3)(2) MUMBAI (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI MAHESH RAJORA DEPARTMENT BY : SHRI VIDHYADHAR DATE OF HEARING : 16 .11.2017 DATE OF PRONOUNCEMENT : 20 .12 .2017 O R D E R PER C.N. PRASAD (JM) 1. THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) - 3, MUMBAI DATED 06.11.2015 FOR THE ASSESSMENT YEAR 2012 - 13. THE ONLY ISSUE IN THE APPEAL OF THE ASSESSEE IS IN RESPECT OF THE DISALLOWANCE MADE U/S. 14A WHILE COMPUTING THE BOOK PROFITS U/S. 115JB OF THE ACT. 2. LEARNED COUNSEL FOR THE ASSESSEE AT THE OUTSET SUBMITS THAT, THE ISSUE IN APPEAL IS N OW DECIDED BY THE SPECIAL BENCH OF THE DELHI TRIBUNAL IN THE CASE OF ACIT V. VIREET INVESTMENTS PRIVATE LIMITED [165 ITD 27] WHEREIN THE SPECIA L BENCH HELD THAT COMPUTATION UNDER CLAUSE(F) OF EXPLANATION 1 TO SECTION 115JB IS TO BE MADE WITHOUT RESORTING T O THE 2 ITA NO.470 /MUM/2016 (A.Y: 201 2 - 13 ) M/S. YATISH TRADING COMPANY PVT. LTD COMPUTATION AS CONTEMPLATED U/S.14A R.W. RULE 8D OF I.T. RULES. THEREFORE, LEARNED COUNSEL FOR THE ASSESSEE SUBMITS THAT IN VIEW OF THE SPECIAL BENCH DECISION EXPENDITURE INCURRED TO EARN EXEMPT INCOME COMPUTED U/S. 14A COULD NOT BE ADDED WHILE COMP UTING THE BOOK PROFITS U/S. 115JB OF THE ACT. 3. LD.DR VEHEMENTLY SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE ORDERS OF THE AUTHORITIES BELOW AND THE DECISION OF THE SPECIAL BENCH. THE SPECIAL BENCH OF TH E TRIBUNAL IN THE CASE OF ACIT V. VIREET INVESTMENTS PRIVATE LIMITED. (SUPRA) HELD THAT COMPUTATION UNDER CLAUSE(F) OF EXPLANATION 1 TO SECTION 115JB IS TO BE MADE WITHOUT RESORTING TO THE COMPUTATION AS CONTEMPLATED U/S.14A R.W. RULE 8D OF I.T. RULES. TH US, RESPECTFULLY FOLLOWING THE SAID DECISION , WE DIRECT THE ASSESSING OFFICER TO RECOMPUTE THE BOOK PROFITS U/S. 115JB OF THE ACT IN ACCORDANCE WITH THE VIEW TAKEN BY THE SPECIAL BENCH. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED . ORDER PRON OUNCED IN THE OPEN COURT ON THE 20 TH DECEMBER , 2017. SD/ - SD/ - ( RAJENDRA ) (C.N. PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI / DATED 20 / 12 / 2017 VSSGB , SPS 3 ITA NO.470 /MUM/2016 (A.Y: 201 2 - 13 ) M/S. YATISH TRADING COMPANY PVT. LTD COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY// BY ORDER, (ASSTT. REGISTRAR) ITAT, MUM
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