HINCON FINANCE LTD, MUMBAI V. DCIT 10(1), MUMBAI

ITA 5853/MUM/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 3788 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 7 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-05-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Next Hearing Date: 10-05-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 19-09-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SIDDARTH B S MEENA
• Assessee Lawyers: ABBASI KAPASI
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES H, MUMBAI BEFORE SHRI B.R.BASKARAN (AM) AND SHRI RAM LAL NEGI (JM) ITA NO 5853/MUM/2014 ASSESSMENT YEAR: 2010-11 HINCON FINANCE LIMITED, HINCON HOUSE, 11 TH FLOOR, 247 PARK, L.B.S.MARG, VIKHROLI(WEST), MUMBAI- 400083. PAN:- AAACH2665M VS. THE DCIT - 10(1), 4 TH FLOOR, AAYAKAR BHAVAN, NEW MARINE LINES, MUMBAI- 400020. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI. ABBASI KAPASI RESPONDENT BY : SHRI. SIDDARTH B.S.MEENA DATE OF HEARING: 10/05 /2016 DATE OF PRONOUNCEMENT: 11/05/20 16 O R D E R PER RAM LAL NEGI, JM THE APPEAL FILED BY THE ASSESSEE IS DIRECTED A GAINST ORDER DT. 17/07/2014 PASSED BY THE LD. CIT(APPEALS)-21, MUMBAI FOR THE A SSESSMENT YEAR 2010-11. 2. THE ONLY ISSUE TO BE DECIDED IN THIS APPEAL RE LATES TO DISALLOWANCE MADE U/S 14A OF THE ACT. 3. THE LD. AR SUBMITTED THAT THE AO HAS COMPUTED DI SALLOWANCE MADE U/S 14A OF THE ACT BY FOLLOWING RULE 8D OF THE I.T RULE S. THE DISALLOWANCE WAS MADE UNDER RULE 8D(2)(III) FOR ADMINISTRATIVE EXPE NSES COMPUTED @ 0.5% OF THE AVERAGE VALUE OF INVESTMENT. 2 ITA NO 5853/MUM/2014 ASSESSMENT YEAR: 2010-11 4. THE LD. AR SUBMITTED THAT THE INADMISSIBLE PORTF OLIO MANAGEMENT FEES OF THE ASSESSEE INCLUDES STRATEGIC INVESTMENT MADE IN THE GROUP COMPANIES. HE SUBMITTED THAT THE CO-ORDINATE BENCH OF THE TRIBUNA L, IN THE CASE OF M/S. J.M.FINANCIAL LTD. (ITA NO. 4521/M/2012) AND GAREWA RE WALL ROPES LTD. (ITA NO. 5408/M/2012), HAS HELD THAT THE STRATEGIC INVES TMENT IS TO BE EXCLUDED FOR COMPUTING OF AVERAGE VALUE OF INVESTMENT. 5. THE LD. AR FURTHER, SUBMITTED THAT THE IDENTICAL ISSUE HAS BEEN CONSIDERED BY THE CO-ORDINATE BENCH OF THE TRIBUNAL, IN ASSESS EES OWN CASE RELATING TO ASST. YEAR 2009-10 AND THE TRIBUNAL, VIDE ITS ORDER DT. 17/10/2014 PASSED IN ITA NO. 2157/M/2013, HAS RESTORED THE MATTER TO THE FILE OF THE ASSESSING OFFICER FOR RE-COMPUTING THE DISALLOWANCE. 6. WE HEARD THE LD. DR AND PERUSED THE RECORD, WE N OTICE THAT THE IDENTICAL ISSUE HAS BEEN RESTORED TO THE FILE OF THE AO FOR C ONSIDERING THE PLEA OF THE ASSESSEE THAT THE INVESTMENT MADE IN THE SHARES OF HINDUSTAN CONSTRUCTION COMPANY IS A STRATEGIC INVESTMENT AND ALSO TO RECOM PUTE DISALLOWANCE U/S 14A IN THE LIGHT OF THE DECISION RENDERED BY THE TR IBUNAL (SUPRA). 7. CONSISTENT WITH THE VIEW TAKEN BY THE CO-ORDINAT E BENCH IN THE A.Y. 2009- 10, WE SET ASIDE THE ORDER OF THE LD. CIT(A) AND RE STORE THIS ISSUE TO THE FILE OF THE AO WITH THE DIRECTION TO EXAMINE THE SAME AFRES H IN ACCORDANCE WITH THE DIRECTIONS ISSUED BY THE CO-ORDINATE BENCH IN A.Y. 2009-10. 8. IN THE RESULT THE APPEAL OF THE ASSESSEE FOR THE A.Y. 2010-11 IS TREATED AS ALLOWED FOR STATISTICAL PURPOSE . 3 ITA NO 5853/MUM/2014 ASSESSMENT YEAR: 2010-11 ORDER PRONOUNCED IN THE OPEN COURT ON 11 TH MAY, 2016 SD/- SD/- ( B.R.BASKARAN ) ( RAM LAL NEGI ) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI; DATED:11/05/2016 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A)- 4. / CIT 5. !' , $ !'% , / DR, ITAT, MUMBAI 6. &' ( / GUARD FILE. / BY ORDER, ) //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI PRAMILA