MITSUTOR SHIPPING AGENCY P. LTD, MUMBAI V. DCIT 2(2), MUMBAI

ITA 5009/MUM/2009

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 3810 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-11-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 02-11-2010
• Assessment Year: 2006-2007
• Appeal Filed On: 02-09-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: L K AGARWAL
• Assessee Lawyers: VINAY U DEVI
• Keywords: Earning of tax free income

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH: MUMBAI BEFORE SHRI R.S. SYAL, ACCOUNTANT MEMBER AND SHRI R. S. PADVEKAR, JUDICIAL MEMBER ITA NO.5009/MUM/2009 (ASSESSMENT YEAR: 2006-07 MITSUTOR SHIPPING AGENCY PVT. LTD., 205/206, VARMA CHAMBERS, 11 HOMJI STREET, FORT MUMBAI -400 001 . ASSESSEE VS DCIT 2(2), AAYAKAR BHAVAN, MUMBAI REVENUE PAN: AAACM 3570 E ASSESSEE BY: SHRI VINAY U. DEVI REVENUE BY: SHRI L.K. AGARWAL 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) II, MUMBAI DATED 12.08.2009 BELONG TO A.Y. 2006-07. THE ASSESSEE HAS TAKEN FOLLOWING GROUNDS:- 1. A) THE LEARNED CIT (A) ERRED IN UPHOLDING THE D ISALLOWANCE OF ` 3,07,580/- U/S.14A. B) THE LEARNED CIT (A) FAILED TO APPRECIATE THAT T HE COMPANY HAS NOT INCURRED ANY EXPENDITURE TO EARN TA X FREE ITA 5009/MUM/2009 MITSUTOR SHIPPING AGENCY PVT. LTD. 2 INCOME AND THAT RULE 8D HAS NO APPLICABILITY FOR 20 06-07 ASST. YEAR. 2. WE HAVE HEARD THE PARTIES. THE ASSESSEE IS A S HIPPING AGENT AND IT ALSO DERIVES THE INCOME BY WAY OF PROVIDING SERVICE S LIKE TRANSPORTATION, CLEARING & FORWARDING ETC. THE ASSESSEE HAS RECEIV ED DIVIDEND INCOME OF ` 77,878/- FROM INDIAN COMPANIES AND DIVIDEND OF ` 25,44,193/- FROM MUTUAL FUNDS AND THE SAME WAS CLAIMED AS EXEMPT U/S .10(34) AND 10(35) OF THE I.T. ACT RESPECTIVELY. THE A.O. MADE DISALLOWANCE U/S.14A OF ` 3,07,580/- OUT OF THE DIRECT EXPENSES AND INTEREST EXPENDITURE ON THE REASON THAT FOR EARNING THE SAID EXEMPT INCOME THE ASSESSEE MUST HAVE INCURRED THE EXPENDITURE WHICH IS DEBITED TO T HE PROFIT & LOSS ACCOUNT. BOTH THE PARTIES AGREED THAT NOW THIS ISS UE HAS TO GO BACK TO THE A.O. IN VIEW OF THE DECISION OF THE HONBLE HIG H COURT OF BOMBAY IN THE CASE OF GODREJ & BOYCE MFG. CO. LTD. VS. DCIT 3 4 DTR 1. WE, THEREFORE, WITH THE AGREEMENT OF BOTH THE PARTIES R EMAND THE ISSUE TO THE FILE OF THE A.O. FOR FRESH ADJUDICATION TO DECIDE T HE SAME AFTER CONSIDERING THE PRINCIPLE LAID DOWN IN THE CASE OF GODREJ & BOY CE MFG. CO. LTD. (SUPRA). 3. IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. SD/- (R.S. SYAL) ACCOUNTANT MEMBER SD/- (R.S. PADVEKAR) JUDICIAL MEMBER MUMBAI, DATE: 19TH NOVEMBER 2010 ITA 5009/MUM/2009 MITSUTOR SHIPPING AGENCY PVT. LTD. 3 COPY TO:- 1) THE APPELLANT. 2) THE RESPONDENT. 3) THE CIT (A) II, MUMBAI. 4) THE CIT- MUMBAI CITY-II, MUMBAI. 5) THE D.R. B BENCH, ITAT, MUMBAI. BY ORDER / / TRUE COPY / / ASSTT. REGISTRAR *CHAVAN I.T.A.T., MUMBAI SR.N. EPISODE OF AN ORDER DATE INITIALS CONCERNED 1 DRAFT DICTATED ON 04.11.2010 SR.PS 2 DRAFT PLACED BEFORE AUTHOR 05.11.2010 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 SR.PS 6 KEPT FOR PRONOUNCEMENT ON SR.PS 7 FILE SENT TO THE BENCH CLERK SR.PS 8 DATE ON WHICH FILE GOES TO THE HEAD CLERK 9 DATE OF DISPATCH OF ORDER