ITO 8(2)(1), MUMBAI V. JAGRUTI RESIGNS P. LTD, MUMBAI

ITA 5811/MUM/2011

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 8921 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-09-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: J
• Next Hearing Date: 30-08-2012
• Assessment Year: 2007-2008
• Appeal Filed On: 17-08-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Earning of tax free income
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH J MUMBAI BEFORE SHRI D.K. AGRAWAL, JUDICIAL MEMBER AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER ITA NO.5811/MUM/2011 ASSESSMENT YEAR-2007-08 THE ITO 8(2)(1), AAYAKAR BHAVAN, MUMBAI-400 020 VS. M/S. JAGRUTI RESIGNS PVT. LTD., ROOM NO. 14, DHAWAL BLDCG, 2 PATHAN STREET, 5, KHUMHARWADA, MUMBAI-400 004 PAN - AAACJ 1726D (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI MOHIT JAIN RESPONDENT BY: NONE DATE OF HEARING :30.08.2012 DATE OF PRONOUNCEMENT: 05.09.2011 O R D E R PER N.K. BILLAIYA, AM: WITH THIS APPEAL, THE REVENUE HAS CHALLENGED THE C ORRECTNESS OF THE ORDER OF THE LD. CIT(A)-17 DT. 8.6.2011 PERTAINING TO ASSESSMENT YEAR 1007- 08. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE THEREFOR E WE HEARD THE LD. DEPARTMENTAL REPRESENTATIVE AND DISPOSE OF THIS MAT TER EX-PARTE ON MERIT. 3. THE SOLE GRIEVANCE OF THE REVENUE IS THAT THE LD . CIT(A) ERRED IN DIRECTING THE AO TO MAKE A REASONABLE ESTIMATE OF E XPENSES ATTRIBUTABLE TO EARNING OF EXEMPT INCOME IN RESPECT OF DISALLOWANCE OF RS. 10,06,974/- U/S. 14A OF THE I.T. ACT. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF LOWER AUTHORITIES. WE FIND THAT DURING THE YEAR UNDER CO NSIDERATION, THE ASSESSEE ITA NO. 5811/M/2011 2 HAS RECEIVED DIVIDEND INCOME AMOUNTING TO RS. 6,59, 174/-. WE FIND THAT THE AO HAS APPLIED PROVISIONS OF SEC. 14A R.W. RULE 8D AND HAS MADE A DISALLOWANCE OF RS. 10,06,974/-. WHILE DECIDING TH E APPEAL, THE LD. CIT(A) HAS RELIED UPON THE JUDGEMENT OF THE HONBLE BOMBAY HIGH COURT IN THE CASE OF GODREJ & BOYCE MFG. CO. LTD. VS DCIT 328 ITR 81 . THE LD. CIT(A) HAS DIRECTED THE AO TO RECOMPUTE THE DISALLOWANCE U/S. 14A OF THE ACT IN ACCORDANCE WITH THE RATIO OF THE JUDGEMENT OF THE H ONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF GODREJ & BOYCE MFG. CO. LTD. V S DCIT (SUPRA). IN OUR HUMBLE OPINION, THE FINDINGS OF THE LD. CIT(A) ARE IN ACCORDANCE WITH THE RATIO LAID DOWN BY THE HONBLE JURISDICTIONAL HIGH COURT (SUPRA). WE, THEREFORE DO NOT FIND ANY REASON TO TINKER TO THE F INDINGS OF THE LD. CIT(A), ACCORDINGLY THE ORDER OF THE LD. CIT(A) IS CONFIRME D. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED ON THIS 5 TH DAY OF SEPTEMBER, 2012 SD/- SD/- (D.K. AGRAWAL) (N.K. BILLAIYA ) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DATED 5 TH SEPTEMBER, 2012 RJ COPY TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT-CONCERNED 4. THE CIT(A)-CONCERNED 5. THE DR J BENCH TRUE COPY BY ORDER ASSTT. REGISTRAR, I.T.A.T, MUMBAI