WALCHANDNAGAR INDUSTRIES LTD, MUMBAI V. DCIT CEN CIR 8(3), MUMBAI

ITA 569/MUM/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 2881 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 8 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-10-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2010-2011
• Appeal Filed On: 27-01-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JEEVAN LAL LAV EDIA
• Assessee Lawyers: VASANTI B PATEL
• Keywords: Rule of consistency; Earning of tax free income
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH G, MU MBAI BEFORE SHRI R.C.SHARMA, ACCOUNTANT MEMBER AND SHRI PAWAN SINGH, JUDICIAL MEMBER ITA NO.569/MUM/2015 (ASSESSMENT YEAR : 2010-2011) WALCHANDNAGAR INDUSTRIES LIMITED, 3,WALCHAND TERRACES, TARDEO ROAD, MUMBAI-400034. PAN: AADPA1516G VS. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE- 8(3), 6 TH FLOOR, AAYAKAR BHAWAN M.K.ROAD, MUMBAI-400020. (APPELLANT) (RESPONDENT) ASSESSEE BY : MS. VASANTI B. PATEL ADVOCATE REVENUE BY : SH. JEEVAN LAL LAV EDIA (DR) DATE OF HEARING : 05.10.2016 DATE OF PRONOUNCEMENT : 05 .10.2016 O R D E R PER PAWAN SINGH; 1. THIS APPEAL U/S. 253 OF INCOME TAX ACT (,ACT) I S DIRECTED BY THE ASSESSEE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (AP PEALS)-38, MUMBAI DATED 18.09.2014 FOR ASSESSMENT YEARS (AY) 2010-11. THE ASSESSEE HAS SUBSTANTIALLY RAISED ONLY ONE GROUND OF APPEAL AGAI NST THE DISALLOWANCE U/S. 14 A OF THE ACT. 2. THE BRIEF FACTS OF THE CASE ARE THAT ASSESSEE-CO MPANY FILED ITS RETURN OF INCOME FOR RELEVANT ASSESSMENT YEAR ON 4 TH OCTOBER 2010, DECLARING TOTAL INCOME OF RS.26,02,10,825/-. THE RETURN OF INCOME W AS SELECTED FOR SCRUTINY. WHILE MAKING ASSESSMENT THE AO BESIDES OTHER DISALL OWANCE MADE THE DISALLOWANCE OF EXPENDITURE UNDER SECTION 14A OF TH E ACT AT RS.18,93,178/-. AGGRIEVED BY THE ORDER OF AO THE ASSESSEE FILED APP EAL BEFORE FIRST APPELLATE AUTHORITY WHEREIN THE DISALLOWANCE WAS CONFIRMED. FURTHER AGGRIEVED, THE ASSESSEE FILED THIS SECOND APPEAL BEFORE THIS TRIBU NAL. ITA NO.569/M/2015 WALCHA NDNAGAR INDUSTRIES LTD 2 3. WE HAVE HEARD THE LD AR OF THE ASSESSEE AND THE LD DR FOR THE REVENUE AND PERUSED THE MATERIAL AVAILABLE ON RECORD. AT THE OU TSET, IT WAS SUBMITTED BY THE LD AR OF THE ASSESSEE THAT THIS GROUND OF APPEA L IS SQUARELY COVERED IN FAVOR OF THE ASSESSEE IN ASSESSEES OWN CASE FOR EA RLIER ASSESSMENT YEAR. THE LD AR OF THE ASSESSEE PLACED ON RECORD THE COPY OF ORDER OF THE TRIBUNAL IN ITA NO 3826/M/ 2013 FOR AY 2009-10. THE LEARNED DR FOR REVENUE HAS NO OBJECTION IF THE SIMILAR ORDER IS PASSED AND THE MATTER IS RESTORED TO THE FILE OF AO TO RECONSIDER THE SAME IN ACCORDANCE WITH THE ORDER DATED 21 ST OF AUGUST 2014, PASSED IN ITA NO. 3826/M/2013. 4. WE HAVE SEEN THE ORDER OF THIS TRIBUNAL IN ITA N O. 3826/M/2013, WHEREIN THE SIMILAR GROUNDS OF APPEAL WAS S CONSIDERED BY THE C OORDINATE BENCH OF THIS TRIBUNAL WHEREIN THE FOLLOWING ORDER WAS PASSED: 10. WE HAVE CAREFULLY PERUSED THE ORDERS OF THE AUT HORITIES BELOW. WE FIND FORCE IN THE CONTENTION OF LEARNED COUNSEL. THE AO HAS NOT REFER RED THE BALANCE-SHEET FIGURES OF THE ASSESSEE. THE AO HAS ALSO NOT GIVEN ANY FINDING WHETHER THE BORROWED FUND WERE ALSO USED FOR MAKING THE INVESTMENTS. THE AO H AS ALSO NOT CONSIDERED THE CLAIM OF ASSESSEE THAT THE INVESTMENTS HAVE BEEN MA DE OUT OF OWN FUNDS. IN THE INTEREST OF JUSTICE, IN OUR CONSIDERED OPINION, THI S ISSUE NEEDS TO BE RE-ADJUDICATED AFRESH. WE, ACCORDINGLY SET-ASIDE THIS ISSUE TO THE FILE OF AO. THE AO IS DIRECTED TO SHOW THE ASSESSEE HAS ACTUALLY INCURRED CERTAIN EXP ENDITURE FOR EARNING THE EXEMPT INCOME CONSIDERING THE FACTS AND THE FIGURES OF THE BALANCE-SHEET OF THE ASSESSEE. THE ASSESSEE IS DIRECTED TO FILE NECESSARY DETAILS BEFORE THE AO. NEEDLESS TO MENTION, THE AO SHALL GIVE A REASONABLE AND FAIR OP PORTUNITY OF BEING HEARD TO THE ASSESSEE. THIS GROUND OF APPEAL IS ALLOWED FOR STAT ISTICAL PURPOSE. 5. THUS ADHERING THE PRINCIPLE OF CONSISTENCY AND THE ORDER OF THE ORDER OF COORDINATE BENCH IN ASSESSEES OWN CASE FOR EARLIER ASSESSMENT YEAR, WE DEEM IT APPROPRIATE TO RESTORE THIS GROUND OF APPEAL TO THE FILE OF AO TO RECONSIDER IT AFRESH AND PASSED ORDER IN ACCORDANCE WITH LAW CONSIDERING THE DIRE CTION CONTAINED IN ORDER DATED 21 AUGUST 2014 IN ITA NO. 3826/M/2013. 6. IN THE RESULT, THE APPEAL FILED BY ASSESSEE IS ALLO WED FOR STATISTICAL PURPOSE. ORDER ANNOUNCED IN OPEN COURT ON 5TH OF OCTOBER 2 0 16. SD/- SD/- (R.C.SHARMA) (PAWAN SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI; DATED 05/10/2016 S.K.PS ITA NO.569/M/2015 WALCHA NDNAGAR INDUSTRIES LTD 3 COPY OF THE ORDER FORWARDED TO : BY ORDER, (ASSTT.REGISTRAR) ITAT, M UMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY/