ITO 5(1)(1), MUMBAI V. ARKO ENTERPRISES P. LTD, MUMBAI

ITA 5166/MUM/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 3308 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 10 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-06-2016
• Appeal Filed By: Department
• Bench Allotted: A
• Next Hearing Date: 11-05-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 18-07-2013
• Court: TRIBUNAL
• Keywords: Earning of tax free income

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A , BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM & SHRI RAM LAL NEGI , JM ./ ITA NO. 5166 / MUM/20 1 3 ( / ASSESSMENT YEAR : 20 10 - 2011 ) ITO - 5(1 )(1), MUMBAI VS. M/S ARKO ENTERPRISES PVT. LTD., 36 - B, TAMARIND HOUSE, TAMARIND LANE, FORT, MUMBAI - 400001 ./ ./ PAN/GIR NO. : A A FCA 3744 B ( / APPELLANT ) .. ( / RESPONDENT ) /REVENUE BY : SHRI MAU RYA PRATAP /AS SESSEE BY : SH.NITESH JOSHI & HITESH TRIVEDI / DATE OF HEARING : 01 /0 6 /2016 / DATE OF PRONOUNCEMENT 01/06 /201 6 / O R D E R PER R.C.SHARMA (A.M) : TH IS IS AN APPEAL FILED B Y THE REVENUE AGAINST THE ORDER OF CIT(A), MUMBAI, FOR THE ASSESSMENT YEAR 20 10 - 2011 2. IN THIS APPEAL THE REVENUE IS AGGRIEVED FOR RESTRICTING DISALLOWANCE U/S.14A TO RS. 1 ,99 , 825/ - IN PLACE OF DISALLOWANCE MADE BY AO AT RS.35,38,248/ - . 3. RIVAL CONTENTION S HAVE BEEN HEARD AND RECORD PERUSED. IN THE COURSE OF ASSESSMENT, THE AO MADE DISALLOWANCE BY COMPUTING INTEREST AND OTHER EXPENSES AS PER RULE 8D. BY THE IMPUGNED ORDER THE CIT(A) RESTRICTED THE DISALLOWANCE TO THE EXTENT OF EXPENDITURE ACTUALLY INCURRED . 4. WE HAVE CONSIDERED RIVAL CONTENTIONS. AS PER OUR CONSIDERED VIEW, DISALLOWANCE U/S.14A CANNOT BE MORE THAN THE ACTUAL EXPENDITURE CLAIMED ITA NO. 5166/13 2 BY THE ASSESSEE. ONLY THE EXPENDITURE WHICH HAVE BEEN INCURRED FOR EARNING THE EXEMPT INCOME CAN BE DISALLOWED U/S.14A. SINCE THE CIT(A) HAS RESTRICTED THE DISALLOWANCE TO THE EXTENT OF AN ACTUAL EXPENDITURE OF RS.1,99,825/ - , WE DO NOT FIND ANY REASON TO INTERFERE IN THE ORDER OF CIT(A). 5 . IN THE RESULT, APPEAL OF REVENUE IS DISMISSED. O RDER PRONOUNCED IN THE OPE N COURT ON THIS 01/06 / 201 6 . SD/ - ( RAM LAL NEGI ) SD/ - ( R.C.SHARMA ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; DATED 01/06 /201 6 . . /PKM , . / PS / COP Y OF THE ORDER FORWARDED TO : / BY ORDER, / ( ASSTT. REGISTRAR) , / ITAT, MUMBAI 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A), MUMBAI. 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD F ILE. //TRUE COPY//