BLOOM PACKAGING P LTD, MUMBAI V. ASST CIT CEN CIR 38, MUMBAI

ITA 5480/MUM/2017

• Counselvise Citation: [2018] 112 COUNSELVISE.COM (IT) 5625 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-11-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 28-08-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S K BEPARI
• Keywords: Earning of tax free income; Rule 8D
• Section: 14A; 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, MUMBAI BEFORE S/ SHRI B.R. BASKARAN (AM) & SANDEEP GOSAIN (JM) I.T.A. NO. 5480 /MUM/20 1 7 (ASSESSMENT YEAR 20 0 9 - 1 0 ) BLOOM PACKAGING PRIVATE LTD. 4 TH FLOOR, READY MONEY TERRACE, DR. A.B. ROAD, WORLI NAKA, MU MBAI - 400 018. PAN NO. AAACB1928K VS. ACIT CC - 38 AAYAKAR BHAVAN M.K. ROAD MUMBAI - 400020. ( APPELLANT ) ( RESPONDENT ) ASSESSEE BY MS. SAISUDHA MULTANI DEPARTMENT BY SHRI S.K. BEPARI DATE OF HEARING 20 . 1 1 . 201 8 DATE OF PRONOUNCEMENT 20 . 1 1 . 201 8 O R D E R PER B.R. BASKARAN (AM) : - THE APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 25.1.2012 PASSED BY THE LEARNED CIT(A) - 54, MUMBAI AND IT RELATES TO A.Y. 2009 - 10. THE ASSESSEE IS AGGRIEVED BY THE DECISION OF THE LEARN ED CIT(A) IN CONFIRMING THE ADDITION MADE BY THE ASSESSING OFFICER U/S. 14A OF THE ACT. 2. WE HAVE HEARD THE PARTIES AND PERUSED THE RECORD. THE ASSESSEE IS ENGAGED IN THE BUSINESS OF MANUFACTURE OF HDPE CONTAINERS. THE ASSESSEE , INTER ALIA, DECLARED DIV IDEND INCOME OF ` 19.27 LAKHS AND SHARE OF PROFIT FROM PARTNERSHIP FIRM OF ` 6.33 LAKHS. THE ASSESSEE CLAIMED BOTH INCOME S AS EXEMPT. THE ASSESSEE DISALLOWED A SUM OF ` 1,353/ - ONLY U/S. 14A OF THE ACT. THE ASSESSING OFFICER , HOWEVER , APPLIED PROVISIONS OF RULE 8D AND COMPUTED DISALLOWANCE OUT OF ADMINISTRATIVE EXPENSES U/R. 8D(2)(III) OF THE I.T. RULES AT ` 1,87,820/ - . THE ASSESSING OFFICER DISALLOWED THE ABOVE SAID AMOUNT AND ACCORDINGLY COMPUTED TOTAL INCOME. 3. IN THE APPELLATE PROCEEDINGS, THE LEARNE D CIT(A) DIRECTED THE ASSESSING OFFICER TO CONSIDER ONLY THOSE INVESTMENTS WHICH HAS RECEIVED EXEMPT INCOME BLOOM PACKAGING PRIVATE LTD. 2 FOR THE PURPOSE OF COMPUTING AVERAGE VALUE OF INVESTMENT FOR THE PURPOSE OF 14A . ACCORDINGLY, HE ALLOWED THE APPEAL OF THE ASSESSEE IN PART. STILL AGGRIEVED, THE ASSESSEE HAS FILED THIS APPEAL BEFORE US. 4. THE LEARNED AR SUBMITTED THAT MOST OF THE INVESTMENTS MADE BY THE ASSESSEE ARE STRATEGIC IN NATURE AND ASSESSEE PREFERRED TO PRESS THAT GROUND BEFORE THE TRIBUNAL. THE LEARNED AR FAIRLY CONCEDED THAT THE ASSESSEE COULD NOT PRESS THIS GROUND IN VIEW OF THE DECISION RENDERED BY HON'BLE SUPREME COURT IN THE CASE OF MAXOPP INVESTMENT LTD. (CIVIL APPEAL NO. 104 - 109 OF 2015 DATED 12.2.2018 AND OTHERS) . A CCORDINGLY THE LEARNED AR SUBMITTED THAT S H E HAS GOT NOTHING TO SAY ON THE ORDER PASSED BY THE LEARNED CIT(A). 5. ON THE CONTRARY, LEARNED DR SUPPORTED THE ORDER PASSED BY THE LEARNED CIT(A). 6. HAVING HEARD THE RIVAL SUBMISSIONS, WE ARE OF THE VIEW THAT THE ORDER PASSED BY THE LEARNED CIT(A) DOES NOT CALL FOR ANY INTERFERENCE , AS NO NEW ARGUMENTS WERE ADVANCED BEFORE US NOR WAS IT SHOWN THAT THE ORDER PASSED BY LD CIT(A) IS NOT IN ACCORDANCE WITH LAW. ACCORDINGLY, WE CONFIRM THE ORDER PASSED BY THE LEARNED CIT(A) ON THIS ISSUE. 7. IN THE RESULT, APPEA L FILED BY THE ASSESSEE IS DISMISSED. ORDER HAS BE E N PRONOUNCED IN THE COURT ON 20 . 1 1 .201 8 . SD/ - SD/ - (SANDEEP GOSAIN ) (B.R.BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED : 20 / 1 1 / 20 1 8 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT 5. DR, ITAT, MUMBAI BLOOM PACKAGING PRIVATE LTD. 3 6. GUARD FILE. BY ORDER, //TRUE COPY// ( SENIOR PRIVATE SECRETARY ) PS ITAT, MUMBAI