MINNI AJAY AGGARWAL, MUMBAI V. ITO 1(3)(2), MUMBAI

ITA 5084/MUM/2012

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 9107 (ITAT-MUMBAI)
• Duration Of Justice: 4 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-12-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 11-12-2012
• Assessment Year: 2008-2009
• Appeal Filed On: 09-08-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: A L SHARMA
• Keywords: Earning of tax free income
• Section: 14A; 37(1)

Judgement Text

. , IN THE INCOME TAX APPELLATE TRIBUNAL SMC , BENCH MUMBAI , BEFORE SHRI R. K. GUPTA , JM ITA NO. 5084 / MUM/ 20 1 2 ( ASSESSMENT YEAR : 200 8 - 20 09 ) MRS. MINNI AJAY AGGARWAL, 164, SITA KUNJ, 1 ST FLOOR, M.K.ROAD, COOPERAGE, MUMBAI - 400 021 VS. ITO 1(3)(2) , MUMBAI PAN/GIR NO. : AA D P A 6353 P ( APPELLANT ) .. ( RESPONDENT ) /ASSESSEE BY : MR. A.L.SHARMA /REVENUE BY : MR. RAKESH RANJAN DATE OF HEARING : 11 TH DEC . , 2012 DATE OF PRONOUNCEMENT : 14 TH DEC. ,2012 O R D E R THIS IS AN APPEAL BY THE DEPARTMENT AGAINST THE ORDER DATED 29 - 5 - 2012 OF LEANED CIT(A) - 2 , MUMBAI RELA TING TO THE ASSESSMENT YEAR 200 8 - 09 . 2 . THE ASSESSEE IS OBJECTING CONFIRMATION OF THE ADDITION OF RS. 63,692/ - MADE UNDER SECTION 14A OF THE ACT. 3 . THE AO MADE DIS ALLOWANCE UNDER SECTION 14A BY OBSERVING THAT THE ASSESSEE MADE INVESTMENT, WHICH ARE EXEMPTED AND, THEREFORE, HE DISALLOWED UNDER SECTION 14A R.W.R.8D. LEARNED CIT(A) HAS CONFIRMED ITA NO. 5084 /20 1 2 2 THE ACTION OF THE AO. NOW, THE ASSESSEE IS IN APPEAL HERE BEFORE THE TRIBUN AL. 4 . LEARNED COUNSEL OF THE ASSESSEE HAS S TATED THAT THE AO AND THE CIT(A) COULD NOT UNDERSTAND THE FACTS OF THE CASE IN RIGHT PERSPECTIVE AS THE ASSESSEE HAS NOT INCURRED ANY EXPENDITURE, THEREFORE, THERE IS NO QUESTION OF DISALLOWANCE OF EXPENDITURE U NDER SECTION 14A. COPY OF THE COMPUTATION OF INCOME IS PLACED AT PAGE 2 TO 4, WHICH IS SELF SATISFACTORY. 5 . ON THE OTHER HAND, LEARNED DR FAIRLY STATED THAT IF NO EXPENDITURE HAS BEEN CLAIMED THEN OF COURSE THERE IS NO QUESTION OF DISALLOWANCE OF THE SA ME, HOWEVER, THE SAME HAS TO BE VERIFIED. 6 . AFTER CONSIDERING THE SUBMISSIONS AND PERUSING THE MATERIAL ON RECORD, I FOUND THAT THE ASSESSEE DESERVES TO SUCCEED IN ITS APPEAL. I NOTED THAT THE ASSESSEE HAS NOT CLAIMED ANY EXPENDITURE; THEREFORE, NO DIS ALLOWANCE CAN BE MADE EITHER UNDER SECTION 37(1) OR UNDER SECTION 14A. PROVISIONS OF SECTION 14 A ARE VERY CLEAR WHICH SAYS THAT ANY EXPENDITURE INCURRED RELATING TO EXEMPT INCOME ARE DISALLOWABLE. SINCE, NO EXPENDITURE INCURRED OR CLAIMED, THEREFORE, THERE IS NO QUESTION OF ANY DISALLOWANCE UNDER SECTION 14A. COPY OF THE PROFIT AND LOSS ACCOUNT IS PLACED AT PAGE 4 AND I NOTED THAT NO SUCH EXPENDITURE HAS BEEN CLAIMED. ACCORDINGLY, I DELETE THE ADDITION MADE AND SUSTAINED BY THE LOWER AUTHORITIES . ITA NO. 5084 /20 1 2 3 7 . IN T HE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 14 TH DAY OF DEC . 2012. 2012 SD/ - ( ) ( R.K.GUPTA ) / JUDICIAL MEMBER MUMBAI ; DATED : 14 / 1 2 / 2012 . /PKM , PS COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / THE CIT(A) , MUMBAI. 4. / CIT 5. / DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY// / BY ORDER, ( DY./ASSTT. REGISTRAR) / ITAT, MUMBAI