RAMESH C. SHAH, MUMBAI V. ADDL CIT RG 19(2), MUMBAI

ITA 502/MUM/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 1841 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2008-2009
• Appeal Filed On: 24-01-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DIPAK KUMAR SINHA
• Keywords: Earning of tax free income
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH D BENCH BEFORE SHRI R.S.SYAL(AM) AND DR.T.M PAVALAN (JM) ITA NO.502/MUM/2012 ASSESSMENT YEAR: 2008-09 RAMESH C SHAH, 26-B, CIFTON, 5 TH FLOOR, BIRLA CORNER, JUHU, MUMBAI-47 PA NO.AAFPSS 8772 A ACIT, RANGE 19(2), PIRAMAL CHAMBERS, MUMBAI. (APPELLANT) VS. (RESPONDENT) APPELLANT BY : SHRI SANJAY C SHAH RESPONDENT BY: SHRI DIPAK KUMAR SINHA DATE OF HEARING: 22.1.2013 DATE OF PRONOUNCEMENT: 30.1.2013 ORDER PER R.S.SYAL, AM: THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDE R PASSED BY THE CIT(A) ON 14.11.2011 IN RELATION TO THE ASSES SMENT YEAR 2008- 09. 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST CONFIRMATION OF DISALLOWANCE OF RS.9,71,056/- U/S.14A OF THE ACT. ITA NO.502/MUM/2012 ASSESSMENT YEAR: 2008-09 2 3. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT ASS ESSEE SHOWED DIVIDEND INCOME OF RS.18,46,914/- AND ALSO SOME OTH ER EXEMPT LONG TERM CAPITAL GAIN. THE ASSESSEE HAD NOT SHOWN ANY DISALLOWANCE UNDER SECTION 14A OF THE ACT. ON BEING CALLED UPON TO WORK OUT THE AMOUNT DISALLOWABLE U/S.14A OF THE ACT, ASSESSEE, W ITHOUT PREJUDICE TO ITS MAIN ARGUMENTS ABOUT NO DISALLOWANCE CALLED FOR IN THE PRESENT CIRCUMSTANCES, WORKED OUT DISALLOWABLE SUM OF RS.9, 71,956/- IN RELATION TO THE INCOME NOT CHARGEABLE TO TAX. THE SAID AMOUNT WAS ADDED BY THE AO, WHICH CAME TO BE UPHELD IN THE FIR ST APPEAL. 4. WE HAVE HEARD RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. THERE IS NO DISPUTE ABOUT THE FACT THAT TH E ASSESSMENT YEAR UNDER CONSIDERATION IS 2008-09, GOING BY THE JUDGM ENT OF HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF GODREJ & B OYCE MFG CO LTD VS DCIT (328 ITR 81), THE PROVISIONS OF RULE 8D ARE AP PLICABLE FOR THE PURPOSES OF COMPUTATION OF DISALLOWANCE U/S.14A OF THE ACT. THE LD. COUNSEL FOR THE ASSESSEE CONTENDED THAT INTEREST FR EE FUNDS AVAILABLE AT THE DISPOSAL OF THE ASSESSEE EXCEEDED THE AMOUNT INVESTED IN ASSETS FETCHING EXEMPT INCOME. WE FIND THAT THERE IS NO DISCUSSION IN THE ASSESSMENT ORDER OR IN THE IMPUGNED ORDER IN THIS REGARD. CONSIDERING THE TOTALITY OF THE FACTS AND CIRCUMSTA NCES OF THE CASE AND ALSO THE ASSESSMENT YEAR UNDER CONSIDERATION, W E SET ASIDE THE IMPUGNED ORDER AND REMIT THE MATTER TO THE FILE OF THE AO FOR COMPUTATION OF FRESH DISALLOWANCE U/.S.14A AS PER L AW AFTER ALLOWING A REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE . ITA NO.502/MUM/2012 ASSESSMENT YEAR: 2008-09 3 5. IN THE RESULT, APPEAL FILED BY ASSESSEE IS ALLOW ED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 30 TH JANUARY, 2013 SD/- (DR.T.M PAVALAN) JUDICIAL MEMBER SD/- (R.S.SYAL) ACCOUNTANT MEMBER MUMBAI, DATED 30 TH JANUARY, 2013 PARIDA COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. COMMISSIONER OF INCOME TAX (APPEALS),30, MUMBAI 4. COMMISSIONER OF INCOME TAX, CITY-19 , MUMBAI 5. DEPARTMENTAL REPRESENTATIVE, BENCH D MUMBAI //TRUE COPY// BY ORDER ASSTT. REGISTRAR, ITAT, MUMBAI