KEWAL KIRAN CLOTHING LTD., MUMBAI V. DCIT - 9(2), MUMBAI

ITA 5498/MUM/2013

• Counselvise Citation: 549819914 RSA 2013
• Duration Of Justice: 1 year(s) 9 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-06-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 15-06-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 19-08-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SANJAY PUNGLIA
• Assessee Lawyers: NIMESH JAIN
• Section: 14A

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES A MUMBAI . . , . . , BEFORE SHRI I.P. BANSAL, JUDICIAL MEMBER AND SHRI B.R.BASKARAN, ACCOUNTANT MEMBER . / ITA NO. 5498/MUM/2013 / ASSESSMENT YEAR 2010-11 M/S. KEWAL KIRAN CLOTHING LTD., KEWAL KIRAN ESTATE, 460/7, I.B.PATEL ROAD, NEAR WESTERN EXPRESS HIGHWAY, GOREGAON (EAST), MUMBAI 400 063 / VS. DY. COMMISSIONER OF INCOME TAX 9(2), ROOM NO.261, AAYKAR BHAVAN, MK ROAD, MUMBAI 400020 ./ ./ PAN/GIR NO. : AAACK 3402H ( / APPELLANT ) .. ( / RESPONDENT ) ASSESSEE BY SHRI NIMESH JAIN RESPONDENT BY : MS. SANJAY PUNGLIA # $ % / DATE OF HEARING : 15/06/2015 # $ % / DATE OF PRONOUNCEMENT : 15/06/2015 / O R D E R PER I.P.BANSAL, JM: THIS IS AN APPEAL FILED BY THE ASSESSEE AND IT IS DIRECTED AGAINST ORDER PASSED BY LD. CIT(A)-20, MUMBAI DATED 26-06-2013 FO R ASSESSMENT YEAR 2010- 11. GROUNDS OF APPEAL READ AS UNDER: 1. ON THE FACTS AND IN CIRCUMSTANCES OF THE CASE A ND IN LAW, THE LD. CIT(A) IN CONFIRMING THE ACTION OF DEPUTY COMMISSIONER OF INC OME TAX 9(2), MUMBAI (THE AO) IN DISALLOWING A SUM OF RS.17,76,954/- U/S. 14A OF THE INCOME TAX ACT, 1961 ( THE ACT) BY MECHANICALLY APPLYING RULE 8D OF IN COME TAX RULES, 1962 (THE RULES). . / ITA NO. 5498/MUM/2013 / ASSESSMENT YEAR 2010-11 2 2. HE FURTHER FAILED TO APPRECIATE AND OUGHT TO HAV E HELD THAT THE SHARE CAPITAL AND RESERVES (INTERNAL ACCRUALS) ARE SUBSTA NTIALLY HIGHER THAN THE INVESTMENTS AND HENCE NO DISALLOWANCE IS WARRANTED U/S.14A OF THE ACT. 2. A LETTER DATED 15/6/2015 HAS BEEN FILED ON BEHAL F OF THE ASSESSEE, IN WHICH IT HAS BEEN STATED AS UNDER: THE CAPTIONED APPEAL IS SCHEDULED FOR HEARING BEFO RE YOUR HONOUR TODAY. IN THIS CONNECTION, WE WISH TO STATE AS UNDER: THE FACTUAL PAPER BOOK FOR THE CAPTIONED APPEAL WAS FILED ON JUNE 8, 2015. HOWEVER, WHILE PREPARING FOR THE MATTER, WE OBSERVE D THAT THE ONLY ISSUE INVOLVED HEREUNDER IS DISALLOWANCE UNDER SECTION 14 A OF THE INCOME-TAX ACT, 1961 READ WITH RULE 8D OF THE INCOME-TAX RULES, 196 2, WHEREIN THE AO HAS COMPUTED THE DISALLOWANCE UNDER RULE 8D(2)(II) AMOU NTING TO RS. 10,84,9991- AND UNDER RULE 8D(2)(III) AMOUNTING TO RS. 6,91,955 /-, RESULTING INTO AGGREGATE DISALLOWANCE OF RS. 17,76,954/-. CONSIDERING THE SMALLNESS OF THE AMOUNT OF DISALLOW ANCE INVOLVED IN THE CAPTIONED APPEAL FOR THE CAPTIONED YEAR, THE APPELL ANT WISHES TO WITHDRAW THE CAPTIONED APPEAL. FOR THIS ACT, OUR CAPTIONED CLIENT SHALL BE GRATEF UL TO YOUR HONOUR. 2.1 THUS, ASSESSEE IS SEEKING WITHDRAWAL OF THIS AP PEAL ON ACCOUNT OF SMALLNESS OF THE AMOUNT OF DISALLOWANCE. 3. LD. DR DID NOT HAVE ANY OBJECTION TO SUCH REQUES T FOR WITHDRAWAL OF THE APPEAL. THEREFORE, AFTER HEARING BOTH THE PARTIES, THE APPEAL WAS PERMITTED TO BE WITHDRAWN. ACCORDINGLY, THE APPEAL IS DISMISSED AS WITHDRAWN. ORDER PRONOUNCED IN THE OPEN COURT ON 15/06/2015 # + , - 15/06/2015 # SD/- SD/- ( . . / B.R.BASKARAN ) . . /I.P.BANSAL ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER MUMBAI; , DATED 15/06/2015 . / ITA NO. 5498/MUM/2013 / ASSESSMENT YEAR 2010-11 3 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. /$ ( ) / THE CIT(A)- 4. /$ / CIT 5. 01 $23 , % 23 , / DR, ITAT, MUMBAI 6. 4 / GUARD FILE. / BY ORDER, 0$ $ //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI . . ./ VM , SR. PS