Finolex Industries Ltd, Pune V. Deputy Commissioner of Income-tax, Central Circle -1 (2), Pune

ITA 561/PUN/2019

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 4460 (ITAT-PUNE)
• Duration Of Justice: 3 year(s) 3 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-07-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2015-2016
• Appeal Filed On: 09-04-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Earning of tax free income; Rule 8D
• Section: 14A

Judgement Text

आयकर अपीलीय अधिकरण “ए” न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, PUNE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अपील सं. / ITA No.561/PUN/2019 धििाारण वर्ा / Assessment Year : 2015-16 Finolex Industries Limited, D 1/10, MIDC, Chinchwad, Pune - 411019 .......अपीलार्थी / Appellant बिाम / V/s. Dy. Commissioner of Income Tax, Central Circle – 1(2), Pune ......प्रत्यर्थी / Respondent Assessee by : Shri Nikhil S. Pathak Revenue by : Shri S.P. Walimbe सुनवाई की तारीख / Date of Hearing : 21-07-2022 घोषणा की तारीख / Date of Pronouncement : 22-07-2022 आदेश / ORDER PER S.S. VISWANETHRA RAVI, JM : This appeal by the assessee against the order dated 07-02-2019 passed by the Commissioner of Income Tax (Appeals)-11, Pune [‘CIT(A)’] for assessment year 2015-16. 2. The only issue is to be decided is as to whether the CIT(A) is justified in confirming the disallowance made under Rule 8D(2)(iii) for the purpose of section 14A of the Act. 2 ITA No.561/PUN/2019, A.Y. 2015-16 3. At the outset, the ld. AR prayed to remand the issue to the file of AO for considering those investments which yielded exempt income for the purpose of disallowance made under Rule 8D(2)(iii) and placed on record order dated 10-11-2021 for A.Y. 2012-13 in assessee’s own case. 4. After hearing both the parties, we note that this Tribunal on similar issue on same identical facts by placing reliance in the case of ACB India Ltd. Vs. CIT reported in (2015) 374 ITR 108 (Del.) directed the AO for computation of disallowance under Rule 8D by considering only such investments which yielded exempt income. Therefore, following the same, the issue is remanded to the file of AO for its consideration for computation of disallowance of those investments which yielded income. Thus, the grounds raised by the assessee are allowed for statistical purpose. 5. In the result, the appeal of assessee is allowed for statistical purpose. Order pronounced in the open court on 22 nd July, 2022. Sd/- Sd/- (Inturi Rama Rao) (S.S. Viswanethra Ravi) ACCOUNTANT MEMBER JUDICIAL MEMBER पुणे / Pune; दिनाांक / Dated : 22 nd July, 2022. रदव आदेश की प्रधिधलधप अग्रेधर्ि / Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The CIT(A)-11, Pune 4. The Pr. CIT (Central), Pune 5. दवभागीय प्रदतदनदि, आयकर अपीलीय अदिकरण, “ए” बेंच, पुणे / DR, ITAT, “A” Bench, Pune. 6. गार्ड फ़ाइल / Guard File. //सत्यादपत प्रदत// True Copy// आिेशानुसार / BY ORDER, वररष्ठ दनजी सदचव / Sr. Private Secretary आयकर अपीलीय अदिकरण ,पुणे / ITAT, Pune