ACIT, CHENNAI V. Dewa Properties Limited, CHENNAI

ITA 491/CHNY/2014

• Counselvise Citation: 49121714 RSA 2014
• Duration Of Justice: 1 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-04-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 25-02-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GURU BHASHYAM IRS
• Section: 263; 143(3); 14A

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . . . , . . !' , # '$ % BEFORE DR. O.K.NARAYANAN, VICE-PRESIDENTAND SHRI S.S. GODARA, JUDICIAL MEMBER ./ ITA NO. 491(MDS)/2014 # & '& / ASSESSMENT YEAR : 2006-07 THE ASSISTANT COMMISSIONER OF INCOME TAX, COMPANY CIRCLE I(4), CHENNAI - 600 034. V. M/S DEWA PROPERTIES LIMITED, NO.770-A, 2 ND FLOOR, DEWA TOWER-I, ANNA SALAI, CHENNAI - 600 002. PAN : AAACS 5085 Q ()*/ APPELLANT) (,-)*/ RESPONDENT) )* . / APPELLANT BY : SHRI GURU BHASHYAM, IRS, JCIT ,-)* . / RESPONDENT BY : SHRI S. VIJAY FOR MS.NANDITA SIVARAMAKRISHNAN, CA / . 01 / DATE OF HEARING : 22 ND APRIL, 2014 2!' . 01 / DATE OF PRONOUNCEMENT : 22 ND APRIL, 2014 / O R D E R PER DR.O.K.NARAYANAN, VICE-PRESIDENT THIS APPEAL FILED BY THE REVENUE RELATES TO ASSES SMENT YEAR 2006-07. THIS APPEAL IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-II AT CHENNAI, PASSED ON - - I.T.A. NO. 491/MDS/14 2 31 ST OCTOBER, 2013 AND ARISES OUT OF THE ASSESSMENT COM PLETED UNDER SECTION 143(3) READ WITH SECTION 263 OF THE I NCOME-TAX ACT, 1961. 2. SHRI GURU BHASHYAM, THE LEARNED JOINT COMMISSION ER OF INCOME TAX, APPEARED FOR THE REVENUE. SHRI S. VIJA Y FROM THE OFFICE OF MS. NANDITA SIVARAMAKRISHNAN, CHARTERED A CCOUNTANT, WAS PRESENT IN THE COURT FOR THE RESPONDENT-ASSESSE E. 3. THE ONLY GROUND RAISED BY THE REVENUE IS THAT TH E COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN R ESTRICTING THE DISALLOWANCE UNDER SECTION 14A TO ` 10 LAKHS AND HOLDING THAT INVOKING THE PROVISIONS OF RULE 8D IS NOT IN O RDER. 4. IT HAS BEEN CONSISTENTLY HELD BY VARIOUS BENCHES OF THE TRIBUNAL AND COURTS THAT RULE 8D IS NOT RETROSPECTI VE IN NATURE AND SAME WOULD BE APPLICABLE ONLY FROM THE ASSESSME NT YEAR 2008-09 ONWARDS. THE COMMISSIONER OF INCOME TAX (A PPEALS) HAS SPECIFICALLY REFERRED THE DECISION OF HON'BLE B OMBAY HIGH COURT IN THE CASE OF GODREJ AND BOYCE MFG. CO. LTD VS. DY. CIT (328 ITR 81). THE PRESENT APPEAL RELATES TO ASSESS MENT YEAR 2006-07. OBVIOUSLY, RULE 8D WILL NOT APPLY TO THE IMPUGNED - - I.T.A. NO. 491/MDS/14 3 ASSESSMENT YEAR. THE COMMISSIONER OF INCOME TAX (A PPEALS) IS JUSTIFIED IN HOLDING THAT RULE 8D IS NOT APPLICA BLE FOR THE IMPUGNED ASSESSMENT YEAR. 5. AS FAR AS ESTIMATION OF DISALLOWANCE IS CONCERNE D, THE COMMISSIONER OF INCOME TAX (APPEALS) HAS RELIED ON VARIOUS DECISIONS, INCLUDING THE BINDING DECISION OF JURISD ICTIONAL TRIBUNAL RENDERED IN THE CASE OF SOUTHERN PETRO CHEMICAL IND USTRIES V. DCIT (93 TTJ 161). IT IS TRUE THAT THE REVENUE HAS NOT RAISED ANY SPECIFIC GROUND ON THE QUANTUM OF ESTIMATION MA DE BY THE COMMISSIONER OF INCOME TAX (APPEALS). 6. IN RESULT, THIS APPEAL FILED BY THE REVENUE IS D ISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON TUESDAY, THE 22 ND OF APRIL, 2014 AT CHENNAI. SD/- SD/- (S.S. GODARA) (DR. O.K. NARAYANAN) ( . . !') ( . . . ) # '$ /JUDICIAL MEMBER /VICE-PRESIDENT /CHENNAI, 4' /DATED, THE 22 ND APRIL, 2014. KRI. - - I.T.A. NO. 491/MDS/14 4 '5 . ,#067 87'0 /COPY TO: 1. )* /APPELLANT 2. ,-)* /RESPONDENT 3. / 90 () /CIT(A)-II, CHENNAI 4. / 90 /CIT, CHENNAI-I, CHENNAI 5. 7: ,#0# /DR 6. & ; /GF.