M/s. Kerala State Industrial Development COrporation Ltd, Trivandrum V. The Jt CIT, Trivandrum

ITA 563/COCH/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 7481 (ITAT-COCHIN)
• Duration Of Justice: 2 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-03-2016
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Assessment Year: 2011-2012
• Appeal Filed On: 31-12-2015
• Court: TRIBUNAL
• Department Lawyers: K P GOPAKUMAR
• Assessee Lawyers: GOVIND SHASTRI B
• Section: 14A

Judgement Text

ITA NO.563 /COCH/2015 1 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE S/SHRI B P JAIN, AM & GEORGE GEORGE.K, JM ITA NO.563/COCH/2015 (ASST YEAR: 2011-12 ) M/S. KERALA STATE INDUSTRIAL DEVELOPMENT CORPORATION LTD., P.O., KOWDIAR, TRIVANDRUM. THE JOINT COMMISSIONER OF INCOME-TAX, RANGE-1, TRIVANDRUM. ( ASSESSEE -APPELLANT) VS (REVENUE -RESPONDENT) PAN NO. AAACK 9434D ASSESSEE BY SHRI GOVIND SHASTRI B., CA REVENUE BY SHRI K.P. GOPAKUMAR, SR. DR DATE OF HEARING 03/03/2016 DATE OF PRONOUNCEMENT 03/03/2016 ORDER PER B P JAIN, AM: THIS APPEAL OF THE ASSESSEE ARISES FROM THE ORDE R OF THE LD. CIT(A), TRIVANDRUM DATED 15/12/2015 FOR THE ASSESSMENT YEAR 2011-12. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS O F APPEAL:- 1. THE LEARNED COMMISSIONER OF INCOME-TAX(APPEALS) ERRED IN UPHOLDING THE ACTION OF THE ASSESSING OFFICER IN DISALLOWING RS.2 9,40,103 U/S. 14A TOWARDS ESTIMATED EXPENDITURE INCURRED FOR EARNING DIVIDEND INCOME, OVERLOOKING THE FACT THAT THE APPELLANT HAD PRODUCED SUFFICIENT MAT ERIAL TO ESTABLISH THAT THEY HAVE NOT INCURRED ANY EXPENDITURE FOR EARNING DIVIDEND INCOME. 2. THE LEARNED COMMISSIONER OF INCOME TAX (APPEAL S) ALSO ERRED IN UPHOLDING THE ACTION OF THE ASSESSING OFFICER IN T AKING THE AVERAGE VALUE OF ITA NO.563 /COCH/2015 2 ENTIRE INVESTMENTS FOR CALCULATING DISALLOWANCE UND ER RULE 8D, INSTEAD OF ONLY THOSE INVESTMENTS FROM WHICH DIVIDEND INCOME HAS BE EN RECEIVED. 3. FOR THE ABOVE AND OTHER ADDITIONAL GROUNDS THA T MAY BE ADVANCED AT THE TIME OF HEARING, THE APPELLANT PRAYS THAT THE A PPEAL MAY BE ALLOWED. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESS ING OFFICER NOTED THAT THE ASSESSEE EARNED DIVIDEND INCOME OF RS.5,90,38,643/- ON ITS INVESTMENT AND THE SAME WAS CLAIMED AS EXEMPT. SINCE THE ASSESSING OF FICER WAS NOT SATISFIED WITH THE GENUINENESS OF THE CLAIM MADE BY THE ASSESSEE W ITH REGARD TO EARNING INTEREST INCOME, DISALLOWANCE U/S. 14A WAS COMPUTED BY INVOKING RULE 8D OF THE IT RULES AT RS.29,40,103/-. 4. THE LD. COUNSEL FOR THE ASSESSEE, SHRI GOVIND SHASTRI B., AT THE OUTSET, PLACED ON RECORD THE DECISION OF THE ITAT, COCHIN BENCH IN ASSESSEES OWN CASE IN I.T.A. NOS. 90&91/COCH/2014 DATED 02/05/2014 FOR THE ASSES SMENT YEAR 2009-10 AND 2010-11 WHERE IDENTICAL DISALLOWANCE WAS MADE BY TH E ASSESSING OFFICER AND CONFIRMED BY THE CIT(A) AND THEREAFTER, THE SAID DI SALLOWANCE WAS CONFIRMED BY THE ITAT, COCHIN BENCH IN ASSESSEES OWN CASE IN I.T.A. NOS. 90&91/COCH/2014 (SUPRA) BY FOLLOWING THE DECISION IN ASSESSEES OWN CASE IN I.T.A. NO. 380/COCH/2013 AND I.T.A. NO. 354/COCH/2013 FOR THE ASSESSMENT YEAR 2008-09. ITA NO.563 /COCH/2015 3 5. THE LD. DR ON THE OTHER HAND RELIED UPON THE O RDERS OF BOTH THE AUTHORITIES BELOW AND THE DECISION OF THE ITAT, COCHIN BENCH IN ASSESSEES OWN CASE IN I.T.A. NOS. 90&91/COCH/2014 (SUPRA). 6. IN THE PRESENT CASE, THE DISALLOWANCE U/S. 1 4A OF THE ACT WAS MADE BY THE ASSESSING OFFICER AGAINST THE EXEMPT DIVIDEND INCOM E EARNED BY THE ASSESSEE. THE ASSESSEE HAD EARNED INCOME FROM DIVIDEND AND CL AIMED THE SAME AS EXEMPT. HOWEVER, THE ASSESSEE DID NOT MAKE ANY DIS ALLOWANCE OF EXPENDITURE INCURRED IN EARNING THAT INCOME AS PER THE PROVISIO NS OF SECTION 14A OF THE ACT AND ACCORDINGLY, THE ASSESSING OFFICER COMPUTED THE AMOUNT OF EXPENDITURE IN TERMS OF RULE 8D R.W.S. SECTION 14A OF THE ACT AND ADDED THE SAME TO THE INCOME OF THE ASSESSEE, WHICH ACTION OF THE ASSESSI NG OFFICER WAS CONFIRMED BY THE LD. CIT(A) . 7. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUS ED THE FACTS OF THE CASE. AT THE OUTSET, THE ISSUE IN THE PRESENT CASE IS IDENTI CAL TO THE ISSUE IN ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2009-10 AND 2010-11 WH ICH HAS BEEN DECIDED BY THE ITAT, COCHIN BENCH VIDE ORDER DATED 02/05/2014 WHICH FOR THE SAKE OF CONVENIENCE IS REPRODUCED HEREINBELOW:- 6. WE HAVE HEARD THE LD. DR AND PERUSED THE ORDER OF THE LD. CIT(A). AS STATED EARLIER, WE NOTICE THAT THE FIRST APPELLATE AUTHORITY HAS FO LLOWED THE ORDER PASSED BY THIS BENCH OF THE TRIBUNAL IN ASSESSEES OWN CASE IN I.T.A. NO. 3 80/COCH/2013 AND I.T.A. NO. 354/COCH/2013 FOR THE ASSESSMENT YEAR 2008-09 AND A CCORDINGLY, CONFIRMED THE ITA NO.563 /COCH/2015 4 DISALLOWANCE MADE BY THE ASSESSING OFFICER. WE FUR THER NOTICE THAT THIS BENCH OF THE TRIBUNAL HAS FOLLOWED THE DECISION RENDERED BY THE HONBLE JURISDICTIONAL HIGH COURT OF KERALA IN THE CASE OF CIT VS. CATHOLIC SYRIAN BANK & ORS.(344 ITR 259) IN DECIDING THE ISSUE AGAINST THE ASSESSEE. SINCE THE LD CIT(A) HAS FOL LOWED THE DECISION RENDERED BY THIS BENCH OF TRIBUNAL IN THE ASSESSEES OWN CASE IN AN EARLIER YEAR, WE DO NOT FIND ANY REASON TO INTERFERE WITH HIS ORDER ON THIS ISSUE IN BOTH T HE YEARS. ACCORDINGLY, WE DISMISS THE APPEALS FILED BY THE ASSESSEE. 8. SINCE THE ISSUE IN THE PRESENT CASE IS COVERED AGAINST THE ASSESSEE BY THE ITAT, COCHIN BENCH FOR THE ASSESSMENT YEARS 2009-10 AND 2010-11 IN I.T.A. NOS. 90&91/COCH/2014 DATED 02/05/2014, THEREFORE, FOLLOW ING THE SAME, WE DISMISS ALL THE GROUNDS OF THE ASSESSEE AND THE APPEAL OF T HE ASSESSEE IS DISMISSED. 9. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS D ISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 03-03-2016 SD/- SD- ( GEORGE GEORGE.K) (B P JAIN ) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE : COCHIN DATED: 3RD MARCH, 2016 GJ COPY TO: 1. M/S. KERALA STATE INDUSTRIAL DEVELOPMENT CORPORA TION LTD., P.O., KOWDIAR, TRIVANDRUM. 2. THE JOINT COMMISSIONER OF INCOME-TAX, RANGE-1, T RIVANDRUM. 3. THE COMMISSIONER OF INCOME-TAX(APPEALS), TRIVAND RUM. 4. THE COMMISSIONER OF INCOME-TAX, TRIVANDRUM. 5. DR/ITAT, COCHIN ITA NO.563 /COCH/2015 5 6. GUARD FILE. BY ORDER ASSISTANT REGISTRAR ITAT, COCHIN 1.DATE OF DICTATION : 03/03/201 2.DATE ON WHICH THE TYPED DRAFT IS PLACED 03/03/2016 BEFORE THE DICTATING MEMBER OTHER MEMBER: 3.DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR . PS/PS: 03/03/2016 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE TH E DICTATING MEMBER : 03/03/2016 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE S R. PS/PS : 03/03/2016 6. DATE ON WHICH THE FILE GOES TO BENCH CLERK: 04 /03/2016 7. DATE ON WHICH THE FILE GOES TO HEAD CLERK: 8. DATE ON WHICH THE FILE GOES TO ASSISTANT REGISTR AR 9. DATE OF DISPATCH OF THE ORDER: