NINCRO INVESTMENT & FINANCE P. LTD, MUMBAI V. ITO WD 5(2)(1), MUMBAI

ITA 5154/MUM/2009

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 3966 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-11-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2005-2006
• Appeal Filed On: 09-09-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Earning of tax free income
• Section: 14A

Judgement Text

1 ITA NO.5154/MUM/2009 I II IN THE INCOME TAX APPELLATE TRIBUNAL N THE INCOME TAX APPELLATE TRIBUNAL N THE INCOME TAX APPELLATE TRIBUNAL N THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH MUMBAI BENCH MUMBAI BENCH MUMBAI BENCH SMC SMC SMC SMC MUMBAI MUMBAI MUMBAI MUMBAI BEFORE SHRI BEFORE SHRI BEFORE SHRI BEFORE SHRI R R R R K PANDA, A K PANDA, A K PANDA, A K PANDA, ACCOUNTANT CCOUNTANT CCOUNTANT CCOUNTANT M MM M EMBER EMBER EMBER EMBER IT ITIT ITA NO A NO A NO A NO. . . . 5154/MUM/2009 5154/MUM/2009 5154/MUM/2009 5154/MUM/2009 (ASSESSMENT YEAR 2005-06) NINCRO INVESTMENT & FINANCE P LTD 49 SAGAR MAHAL 63 VALKESHWAR RD MUMBAI VS THE INCOME TAX OFFICER WARD 5(2)(1), MUMBAI (APPELLANT) (RESPONDENT) PAN PAN PAN PAN AABCN0893J AABCN0893J AABCN0893J AABCN0893J ASSESSEE BY: NONE REVENUE BY: SHRI JITENDRA YADAV/DR O OO O R RR R D DD D E EE E R RR R PER PER PER PER R RR R K PANDA K PANDA K PANDA K PANDA: :: : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER DATED 19.6.2009 OF THE CIT(A)-5, MUMBAI RELATING TO ASSES SMENT YEAR 2005-06. 2 NONE APPEARED ON BEHALF OF THE ASSESSEE DESPITE S ERVICE OF NOTICE. THEREFORE, THE MATTER IS BEING DISPOSED OF ON THE B ASIS OF MATERIAL AVAILABLE ON RECORD AND AFTER HEARING THE LD DR. 3 THE ASSESSEE IN ITS APPEAL CHALLENGED THE ORDER O F THE CIT(A) IN CONFIRMING THE DISALLOWANCE OF ` 76,004/- MADE BY THE ASSESSING OFFICER U/S 14A OF THE I T ACT, 1961. 3.1 FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSES SEE EARNED DVIDEND INCOME OF ` 6,80,173/- AND LONG TERM CAPITAL GAIN OF ` 7,35,628/- AND CLAIMED THE SAME TO BE EXEMPT. THE ASSESSEE HAS NOT OFFERED ANY DISALL OWANCE U/S 14A OF THE I T ACT WHILE COMPUTING THE TOTAL INCOME. THE ASSESSING OFF ICER ASKED THE ASSESSEE TO EXPLAIN AS TO WHY DISALLOWANCE U/S 14A SHOULD NOT B E MADE IN RESPECT OF EXEMPT INCOME CLAIMED BY THE COMPANY. IT WAS EXPLAINED BY THE ASSESSEE THAT NO DISALLOWANCE U/ 14A IS CALLED FOR. REJECTING THE EX PLANATION GIVEN BY THE ASSESSEE, THE ASSESSING OFFICER DISALLOWED AN AMOUN T OF ` 76,004/- U/S 14A OF THE I T ACT WHICH WAS UPHELD BY THE CIT(A). 2 ITA NO.5154/MUM/2009 4 AGGRIEVED WITH SUCH ORDER OF THE CIT(A), THE ASSE SSEE IS IN APPEAL BEFORE THE TRIBUNAL. 5 AFTER HEARING THE LD DR AND PERUSING THE ORDERS O F THE AUTHORITIES BELOW, I AM OF THE OPINION THAT THE MATTER REQUIRES FRESH AD JUDICATION AT THE LEVEL OF THE ASSESSING OFFICER IN THE LIGHT OF THE LATEST DECI SION OF THE JURISDICTIONAL HIGH COURT IN THE CASE OF GODREJ & BOYCE MFG P LTD VS ACIT REPORTED IN 234 ITR 1. I THEREFORE, RESTORE THE ISSUE TO THE FILE OF THE ASS ESSING OFFICER FOR FRESH ADJUDICATION IN THE LIGHT OF THE DECISION CITED SUP RA. THE ASSESSING OFFICER SHALL GIVE DUE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AND DECIDE THE ISSUE IN ACCORDANCE WITH LAW. I HOLD AND DIRECT ACCORDINGLY. THE GROUND RAISED BY THE ASSESSEE IS ACCORDINGLY ALLOWED FOR STATISTICAL PUR POSE. 6 IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE I S ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED ON THE 4TH, DAY OF NOV 2010. SD/- ( ( ( ( R K PANDA R K PANDA R K PANDA R K PANDA ) )) ) ACCOUNTANT MEMBER PLACE: MUMBAI : DATED: 4 TH , NOV 2010 RAJ* COPY FORWARDED TO: 1 APPELLANT 2 RESPONDENT 3 CIT 4 CIT(A) 5 DR /TRUE COPY/ BY ORDER DY /AR, ITAT, MUMBAI