United Metal Industries, CHENNAI V. ACIT, CHENNAI

ITA 513/CHNY/2016

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 9139 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-06-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 07-03-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Section: 14A

Judgement Text

ITA NO.513/MDS/2016. :- 7 -: ASSESSING OFFICERS WERE DISALLOWANCE BEING THE AG REED ADDITION AND CONCURRED WITH FINDINGS OF THE ASSESSING OFFICER A ND LD. AUTHORISED REPRESENTATIVE PRAYED FOR SETTING ASIDE THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) AND ALLOW THE GROUNDS OF THE A SSESSEE. 6. CONTRA, THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE COMMISSIONER OF INCOME TAX (APPEALS) AND OPPOSED TO THE GROUNDS. 7. WE HEARD THE RIVAL SUBMISSIONS, PERUSED THE MATERIA L ON RECORD AND EVIDENCES FILED. THE CRUX OF THE ISSUE B EING THE DISALLOWANCE U/S.14A R.W.RULE 8D(2)(I)(II) (III) CA LCULATED BY THE LD. ASSESSING OFFICER. THE LD. AUTHORISED REPRESENTATI VE SUBMITTED THAT LD. ASSESSING OFFICER HAS CALCULATED THE AVERAGE OF VALUE OF INVESTMENTS IRRESPECTIVE OF THE FACT THAT THERE IS NO OPENING BALANCE AND CLOSING BALANCE IN THE PREVIOUS YEAR. THE ASSE SSEE HAS SURPLUS NONINTEREST BEARING FUNDS FOR INVESTMENTS IN LIQUI D FUNDS. THE LD. AUTHORISED REPRESENTATIVE DREW OUR ATTENTION TO THE LETTER DATED 29.11.2014 FILED IN THE ASSESSMENT PROCEEDING EXPLA INING AND OBJECTING TO THE DISALLOWANCE U/SEC. 14A RWS 8D AS THE ASSESSEE FIRM IS HAVING SURPLUS FUNDS AND INVESTMENTS ARE MADE ON LY IN THE MUTUAL FUNDS AND THERE BEING IS NO OPENING AND CLOSING BA LANCE OF VALUE OF INVESTMENTS AND DEMONSTRATED THE INVESTMENT PATTERN BY SUBMITTING JM FINANCIAL MUTUAL FUND ACCOUNT STATEMENT INCLUDI NG REINVESTMENT OF