FOREVER FLOURISHING FINANCE & INV. PVT. LTD., MUMBAI V. DCIT - CC- 3(4), MUMBAI

ITA 4933/MUM/2018

• Counselvise Citation: [2019] 111 COUNSELVISE.COM (IT) 9646 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 3 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-12-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 23-08-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: CHAITANYA ANJARIA
• Assessee Lawyers: R C JAIN
• Keywords: Earning of tax free income
• Section: 14A; 201

Judgement Text

T HE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI BEFORE SHRI SHAMIM YAHYA ( A M) & SHRI AMARJIT SINGH (JM) I.T.A. NO. 4933 /MUM/ 201 8 (ASSESSMENT YEAR 20 14 - 15 ) FOREVER FLOURISHING FINANCE & INV. P. LTD. A/401, PEARL ARCADE OPP. P.K. JEWELLERS DAWOO D BAUGH LANE ANDHERI WEST MUMBAI - 400 058. PAN : AAACF3117Q V S . DCIT, CC - 3(4) ROOM NO. 1915 19 TH FLOOR AIR INDIA BUILDING NARIMAN POINT MUMBAI - 400 021. ( APPELLANT ) ( RESPONDENT ) ASSESSEE BY SHRI R.C. JAIN DEPARTMENT BY SHRI CHAITANYA ANJARIA DAT E OF HEARING 04 . 09 . 201 9 DATE OF PRONOUNCEMENT 02 . 1 2 . 201 9 O R D E R PER SHAMIM YAHYA (AM) : - THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A) DATED 6.7.2018 AND PERTAINS TO A.Y. 2014 - 15. 2. THE ISSUE PERTAINS TO DISALLOWANCE U/S. 14A. 3. THE ASSESSING OFFICER HAS MADE DISALLOWANCE U/S. 14A OF THE ACT IN THIS CASE AT RS. 4,97,948/ - . THE ASSESSEES REQUEST THAT THE DISALLOWANCE SHOULD BE RESTRICTED TO THE EXEMPT INCOME EARNED HAS BEEN REJECTED BY LEARNED CI T(A). 4. AGAINST THIS ORDER THE ASSESSEE IS IN APPEAL BEFORE US. 5. WE HAVE HEARD BOTH THE COUNSEL AND PERUSED THE RECORDS. WE FIND THAT THE ASSESSEES PLEA THAT THE DISALLOWANCE SHOULD BE RESTRICTED TO THE EXEMPT INCOME EARNED IS DULY COVERED IN FAVOUR OF THE ASSESSEE BY SEVERAL DEC I SIONS INCLUDING THAT FROM DECISION OF APEX COURT IN THE CASE OF PCIT VS. STATE BANK 2 OF PATIALA ( 259 TAXMAN 314 ) CONSIDERED IN THE DECISION OF MAXOPP INVESTMENT LTD. VS COMMISSIONER OF INCOME - TAX [2018] 91 TAXMANN.COM 154 (SC ) . ACCORDINGLY, WE DIRECT THAT THE DISALLOWANCE BE RESTRICTED TO EXEMPT INCOME EARNED. 6. IN THE RESULT, ASSESSEES APPEAL IS PARTLY ALLOWED. ORDER HAS BE EN PRONOUNCED IN THE COURT ON 02.12 . 201 9 . SD/ - SD/ - ( AMARJIT SINGH ) (SH A MIM YAHYA ) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED : 02 / 1 2 / 20 1 9 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// ( ASSISTANT REGISTRAR ) PS ITAT, MUMBAI