GAURAV VINOD NEVATIA, MUMBAI V. ACIT 21(2), MUMBAI

ITA 4955/MUM/2014

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 2877 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 2 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-10-2016
• Appeal Filed By: Assessee
• Bench Allotted: G
• Next Hearing Date: 06-09-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 30-07-2014
• Court: TRIBUNAL
• Department Lawyers: JEEVAN LAL LAV EDIA
• Assessee Lawyers: BHARAT M PATHAK
• Section: 143(3); 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL G , BENCH MUMBAI BEFORE: SHRI R.C.SHARMA, AM & SHRI PAWAN SINGH , JM ITA NO. 4955 /MUM/201 4 ( ASSESSMENT YEAR : 20 1 0 - 20 11 ) SHRI GAURAV VINOD NEVATIA 206, KAKAD CHAMBERS, DR. A.B.ROAD, WORLI, MUMBAI 400018 VS. ACIT, 2 1 (2), MUMBAI - 400051 PAN/GIR NO. : AA EPN8177F ( APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI BHARAT M PATHAK REVENUE BY : SHRI JEEVANLAL LAVEDIA DATE OF HEARING : 04 / 1 0/2016 DATE OF PRONOUNCEMENT : 05 / 10 /2016 / O R D E R PER R.C.SHARMA (A.M) : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST ORDER OF CIT(A) FOR THE ASSESSMENT YEAR 2010 - 2011 IN THE MATTER OF ORDER PASSED UNDER SECTION 143(3) OF THE I.T.ACT. 2. THE ONLY GRIEVANCE OF ASSESSEE RELATE TO DISALLOWANCE OF RS.22,20,420/ - UNDER SECTION 14A. IT WAS CONTENDED BY LEARNED AR THAT AO HAD MADE DISALLOWANCE UNDER SECTION 14A IN RESPECT OF SHARES HELD AS STOCK IN TRADE. HE RELIED ON THE DECISION OF BOMBAY HIGH COURT IN ITA NO.1131 OF 2013 D ATED 17/03/2015 IN CASE OF INDIA ADVANTAGE SECURITIES LTD., AND ALSO KARNATAKA HIGH COURT IN CASE OF CCL LIMITED WHEREIN IT WAS HELD THAT NO DISALLOWANCE UNDER SECTION 14A IS WARRANTED IN RESPECT OF SHARES HELD AS STOCK IN TRADE. 2 ITA NO. 4955 - 2014 (A.Y.2010 - 11 (SHRI GAURAV VINOD NEV ATIA) 3. WE HAVE CONSIDERED RIVA L CONTENTION AND FOUND THAT THE DISALLOWANCE HAS BEEN MADE BY AO UNDER SECTION 14A IN A ROUTINE MANNER. IN VIEW OF THE DECISION OF THE BOMBAY HIGH COURT AND KARNATAKA HIGH COURT AS REFERRED ABOVE, NO DISALLOWANCE IS REQUIRED TO BE MADE IN RESPECT OF SHARES HELD AS STOCK IN TRADE. RESPECTFULLY FOLLOWING THE DECISION OF THE JURISDICTIONAL HIGH COURT, WE RESTORE THE MATTER BACK TO THE FILE OF THE AO FOR EXCLUDING THE SHARES HELD AS STOCK IN TRADE WHILE COMPUTING DISALLOWANCE UNDER SECTION 14A. WE DIRECT ACCORD INGLY. 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 05/10/ 2016. SD/ - ( PAWAN SINGH ) SD/ - (R.C.SHARMA) / JUDICIAL MEMBER / ACCOUN TANT MEMBER MUMBAI ; DATED 05 / 10 /2016 KARUNA , SR. PS / COPY OF THE ORDER FORWARDED TO : / BY ORDER, / ( ASSTT. REGISTRAR) , / ITAT, MUMBAI 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A), MUMBAI. 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE. //TRUE COPY// 3 ITA NO. 4955 - 2014 (A.Y.2010 - 11 (SHRI GAURAV VINOD NEV ATIA)