DR, RAMAKANT PANDA, MUMBAI V. ADDL CIT RG 11(3), MUMBAI

ITA 570/MUM/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 1801 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-02-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 30-01-2013
• Assessment Year: 2007-2008
• Appeal Filed On: 30-01-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DIPAK KUMAR SINHA
• Assessee Lawyers: D D ANJARIA
• Keywords: Opportunity of being heard
• Section: 14A

Judgement Text

, , , , , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES D, MUMBAI .. , ! ' #. $.. % , & ', ' BEFORE SHRI R.S.SYAL, AM AND DR.T.M.PAVALAN, JM ITA NO.570/MUM/2012 : ASST.YEAR 2007-2008 DR.RAMAKANTA PANDA 302 DOCTOR HOUSE, 14 PEDDAR ROAD MUMBAI 400 026. PAN : AAOPP2308N. THE ADDL.COMMISSIONER OF INCOME-TAX RANGE 11(3) MUMBAI. ( () / // / APPELLANT) % % % % / VS. ( +,()/ RESPONDENT) () - -- - . . . . / APPELLANT BY : SHRI D.D.ANJARIA +,() - . - . - . - . / RESPONDENT BY : SHRI DIPAK KUMAR SINHA % - /! / / / / DATE OF HEARING : 30.01.2013 012 - /! / DATE OF PRONOUNCEMENT : 05.02.2013 ' 3 ' 3 ' 3 ' 3 / / / / O R D E R PER R.S.SYAL (AM) : THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDER PASSED BY THE COMMISSIONER OF INCOME-TAX (APPEALS) ON 29.11.2011, IN RELATION TO THE ASSESSMENT YEAR 2007-2008. 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST THE CONFIRMATION OF ADDITION OF ` 5,33,371 MADE BY THE ASSESSING OFFICER U/S 14A OF THE ACT. ITA NO.570/MUM/2012. DR.RAMAKANTA PANDA. 2 3. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT TH E ASSESSEE EARNED CERTAIN EXEMPT DIVIDEND INCOME. NO EXPENDITURE WAS ATTRIBUTED TO THE EARNING OF SUCH INCOME. INVOKING THE PROVISIONS OF SECTION 14A READ WITH RULE 8D, THE ASSESSING OFFICER WORKED OUT DISA LLOWANCE OF ` 5,33,371. THE LEARNED CIT(A) UPHELD THE ASSESSMENT ORDER ON THIS POINT. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED T HE RELEVANT MATERIAL ON RECORD. IT IS NOTED THAT THE QUESTION O F MAKING DISALLOWANCE U/S 14A IS NO MORE RES INTEGRA IN VIEW OF THE JUDGMENT OF THE HONBLE BOMBAY HIGH COURT IN GODREJ & BOYCE LTD. MFG. CO. VS. DCIT [(2010) 328 ITR 81 (BOM)] HOLDING THAT THE PROVISIONS OF SECTION 14A ARE APPLICABLE IN CIRCUMSTANCES AS ARE PREVAILING PRESENTLY AND THE DISALLOWANCE HAS TO BE WORKED OUT BY THE AO ON SOME `REASONABLE BASIS AND NOT RULE 8D IN SO FAR A S THE ASSESSMENT YEARS PRIOR TO 2008-09 ARE CONCERNED. PRESENTLY WE ARE DEALING WITH THE A.Y. 2007-08. IN SUCH YEAR, OBVIOUSLY RULE 8D C ANNOT BE APPLIED, BUT THE DISALLOWANCE IS REQUIRED TO BE WORKED OUT O N SOME REASONABLE BASIS. AS THE AUTHORITIES BELOW HAVE COMPUTED THE D ISALLOWABLE AMOUNT AS PER RULE 8D, SUCH COMPUTATION CANNOT BE U PHELD. UNDER SUCH CIRCUMSTANCES, WE SET ASIDE THE IMPUGNED ORDER AND RESTORE THE MATTER TO THE FILE OF THE AO FOR DECIDING THE QUANT UM OF DISALLOWANCE, AS PER THE AFORE-NOTED JUDGMENT, AFTER ALLOWING A R EASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. ITA NO.570/MUM/2012. DR.RAMAKANTA PANDA. 3 5. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATIST ICAL PURPOSES. ORDER PRONOUNCED ON THIS 05 TH DAY OF FEBRUARY, 2013. ' 3 - 012 4'%5 1 - 6 SD/- SD/- (DR.T.M.PAVALAN) (R.S.SYAL) & ' & ' & ' & ' / JUDICIAL MEMBER ! ' ! ' ! ' ! ' / ACCOUNTANT MEMBER MUMBAI ; 4'% DATED : 05 TH FEBRUARY, 2013. DEVDAS* ' 3 - +&/78 9 82/ ' 3 - +&/78 9 82/ ' 3 - +&/78 9 82/ ' 3 - +&/78 9 82// COPY OF THE ORDER FORWARDED TO : 1. () / THE APPELLANT 2. +,() / THE RESPONDENT. 3. : () / THE CIT(A)-2, MUMBAI. 4. : / CIT 5. 8=6 +&/&% , , / DR, ITAT, MUMBAI 6. 6 > / GUARD FILE. ' 3% ' 3% ' 3% ' 3% / BY ORDER, ,8/ +&/ //TRUE COPY// ? ? ? ?/ // /@ A @ A @ A @ A ( DY./ASSTT. REGISTRAR) , , , , / ITAT, MUMBAI