GARWARE CLUB HOUSE, MUMBAI V. DCIT (1)(1), MUMBAI

ITA 4826/MUM/2010

• Counselvise Citation: 482619914 RSA 2010
• Duration Of Justice: 1 year(s) 3 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-09-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 21-09-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 10-06-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K NAIK
• Keywords: Opportunity of being heard; Earning of tax free income

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL G BENCH: MUMBAI BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER AND SHRI R.S. PADVEKAR, JUDICIAL MEMBER ITA NO.4826/MUM/2010 (ASSESSMENT YEAR: 2006-07) M/S. GARWARE CLUB HOUSE, WANKHEDE STADIUM, D ROAD, MUMBAI -400 020 ....... APPELLANT VS ITO14(1)(1)/DCIT -1(1), EARNEST HOUSE, MUMBAI -400 021 ..... RESPONDENT PAN: AAACG 1591 M APPELLANT BY: SHRI BHUPENDRA SHAH RESPONDENT BY: SHRI A.K. NAIK DATE OF HEARING: DATE OF PRONOUNCEMENT: 21.09.2011 28.09.2011 O R D E R PER R.S. PADVEKAR, JM: IN THIS APPEAL THE ASSESSEE HAS CHALLENGED THE IMPU GNED ORDER OF THE LD. CIT (A) -1, MUMBAI FOR THE A.Y. 2006-07 DATED 17.03.2010. THE ASSESSEE HAS TAKEN THE FOLLOWING EFFECTIVE GROU NDS:- 1. IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE ASSESSING OFFICER ERRED IN DISALLOWING ` 6,29,955/- U/S.14A BY WRONGLY INTERPRETING RULE 8D. THE LEARN ED ITA 4826 /MUM/2010 M/S. GARWARE CLUB HOUSE 2 COMMISSIONER OF INCOME TAX (A) ALSO ERRED IN CONFIR MING THE SAME. 2. IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW, THE ASSESSING OFFICER ERRED IN WRONGLY CHARGING INTERES T U/S.234B, C, D. 2. THE SHORT CONTROVERSY IS IN RESPECT OF DISALLOWA NCE MADE BY THE A.O. U/S.14A TO THE EXTENT OF ` 6,29,995/- ON THE REASON THAT THE ASSESSEE HAD EARNED THE EXEMPT INCOME FOR WHICH THE ASSESSEE WAS REQUIRED TO MAKE AN INVESTMENT. THE ASSESSEE IS IN APPEAL BEFORE THE LD. CIT (A) BUT WITHOUT SUCCESS. 3. WE HAVE HEARD THE PARTIES. BOTH THE PARTIES AGR EED THAT NOW THIS ISSUE HAS TO GO BACK TO THE A.O. TO DECIDE THE SAME AFRESH IN THE LIGHT OF THE PRINCIPLES LAID DOWN BY THE HONBLE JU RISDICTIONAL HIGH COURT IN THE CASE OF DCIT VS. GODREJ AND BOYCEE MFG . CO. LTD. 328 ITR 81 (BOM). WE ACCORDINGLY SET ASIDE THE ORDER OF TH E LD. CIT (A) ON THIS ISSUE AND RESTORE THE ISSUE OF DISALLOWANCE MADE U/ S.14A TO THE FILE OF THE A.O. FOR FRESH CONSIDERATION WITH THE DIRECTION TO DECIDE THE SAME IN THE LIGHT OF THE PRINCIPLES LAID DOWN IN THE CAS E OF GODREJ AND BOYCEE MFG. CO. LTD. (SUPRA). NEEDLESS TO SAY THE A.O. IS DIRECTED TO GIVE REASONABLE OPPORTUNITY OF BEING HEARD TO THE A SSESSEE. ACCORDINGLY, GROUND NO.1 IS ALLOWED FOR THE STATIST ICAL PURPOSES. 4. THE LD. COUNSEL SUBMITS THAT GROUND NO.2 IS ONLY CONSEQUENTIAL AS GROUND NO.2 IS CONSEQUENTIAL WE ALSO SET ASIDE T HE SAME TO THE FILE OF THE A.O. 5. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED FOR THE STATISTICAL PURPOSES. ITA 4826 /MUM/2010 M/S. GARWARE CLUB HOUSE 3 ORDER PRONOUNCED IN THE OPEN COURT ON THIS DAY OF 2 8TH SEPTEMBER 2011. SD/- SD/- ( P.M. JAGTAP ) ACCOUNTANT MEMBER ( R.S. PADVEKAR ) JUDICIAL MEMBER MUMBAI, DATED : 28TH SEPTEMBER 2011 COPY TO:- 1) THE APPELLANT. 2) THE RESPONDENT. 3) THE CIT (A) -1, MUMBAI. 4) THE CIT-1, MUMBAI. 5) THE D.R. G BENCH, MUMBAI. BY ORDER / / TRUE COPY / / ASSTT. REGISTRAR I.T.A.T., MUMBAI *CHAVAN ITA 4826 /MUM/2010 M/S. GARWARE CLUB HOUSE 4 SR.N. EPISODE OF AN ORDER DATE INITIALS CONCERNED 1 DRAFT DICTATED ON 23.09.2011 SR.PS 2 DRAFT PLACED BEFORE AUTHOR 24.09.2011 SR.PS 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER JM/AM 5 APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS/PS 6 KEPT FOR PRONOUNCEMENT ON SR.PS/PS 7 FILE SENT TO THE BENCH CLERK SR.PS/PS 8 DATE ON WHICH FILE GOES TO THE HEAD CLERK 9 DATE OF DISPATCH OF ORDER