Micron Instruments Pvt. Ltd., New Delhi V. DCIT, New Delhi

ITA 5880/DEL/2012

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 69364 (ITAT-DELHI)
• Duration Of Justice: 10 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-10-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 01-10-2013
• Assessment Year: 2009-2010
• Appeal Filed On: 22-11-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RENUKA JAIN GUPTA
• Assessee Lawyers: R M MEHTA
• Section: 14A

Judgement Text

ITA NO. 5880/DEL/2012 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH E, NEW DELHI BEFORE SMT. DIVA SINGH, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER I.T.A. NO. 5880 /DEL/201 2 A.Y. : 2009-10 MICRON INSTRUMENTS PVT. LTD., P-4/90, CONNAUGHT CIRCUS, NEW DELHI 110 001 (PAN:AAACM-0386-Q) VS. DCIT, CIRCLE 6(1), NEW DELHI (APPELLANT) (APPELLANT) (APPELLANT) (APPELLANT) (RESPONDENT) (RESPONDENT) (RESPONDENT) (RESPONDENT) ASSESSEE BY : SH. R.M. MEHTA, ADVOCATE DEPARTMENT BY : SMT. RENUKA JAIN GUPTA, SR. D.R. ORDER ORDER ORDER ORDER PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS)-IX, NE W DELHI DATED 27.9.2012 PERTAINING TO ASSESSMENT YEAR 2009-10. 2. THE ISSUE RAISED IS THAT LD. CIT(A) ERRED IN UPHO LDING THE DISALLOWANCE OF RS. 2,43,705/- ON ACCOUNT OF PRO-R ATA INTEREST WHILE COMPUTING DISALLOWANCE UNDER RULE 8D. 3. IN THIS CASE ASSESSEE COMPANY WAS ENGAGED IN THE BUSINESS OF MANUFACTURING OF PRECISION INSTRUMENTS. DURING THE COURSE OF ASSESSMENT FOR A.Y. 2009-10 AO COMPUTED DISALLOWA NCE U/S. 14A. IN THIS REGARD, AO FOLLOWED RULE 8D. ACCORDINGLY, AO CAME TO A FIGURE OF RS. 4,99,496/- WHICH WAS TO BE DISALLOWED U/S. 14A, AS THE ASSESSEE HAS SELF DISALLOWED UNDER RULE 8-D OF THE I.T. RULE ITA NO. 5880/DEL/2012 2 AMOUNTING TO RS. 2,33,112/- HENCE, BALANCE AMOUNT O F RS. 2,66,834/- WAS DISALLOWED U/S. 14A AND ADDED TO THE TAXABLE INCOME OF THE ASSESSEE. 4. BEFORE THE LD. CIT(A) ASSESSEE SUPPORTED ITS OWN COMPUTATION OF DISALLOWANCE U/S. 14A. IT WAS SUBMITTED THAT A SSESSEE HAS NOT TAKEN THE LOANS FOR INVESTMENT. IT WAS SUBMITTED T HAT INVESTMENTS HAVE BEEN MADE OUT OF OWN FUNDS AND NOT FROM LOANS. HOWEVER, THESE SUBMISSIONS WERE NOT ACCEPTED BY THE LD. CIT( A). LD. CIT(A) HELD THAT THE ASSESSEE COULD NOT SUBSTANTIATE THE G ROUND THAT IT HAD OWN FUNDS THAT WERE UTILISED FOR THE PURPOSE OF INV ESTMENT. IT WAS FURTHER NOTED THAT ASSESSEE HAS NOT BEEN SUBMITTED COPY OF LOAN ACCOUNT. ACCORDINGLY, LD. CIT(A) AFFIRMED THE AO S ACTION. 5. AGAINST THE ABOVE ORDER THE ASSESSEE IS IN APPEA L BEFORE US. 6. WE HAVE HEARD BOTH THE COUNSEL AND PERUSED THE R ECORDS. LD. COUNSEL OF THE ASSESSEE SUBMITTED THAT ASSESSEE HAS SUBMITTED THE DETAILED SUBMISSIONS BEFORE THE AO AS WELL AS LD. C IT(A). LD. COUNSEL SUBMITTED THAT THESE HAVE BEEN BRUSHED ASID E BY THE AUTHORITIES BELOW WITHOUT GIVING ANY PROPER FINDING . 6.1 LD. DEPARTMENTAL REPRESENTATIVE ON THE OTHER HA ND, RELIED UPON THE ORDERS OF THE AUTHORITIES BELOW. 7. WE HAVE CAREFULLY CONSIDERED THE SUBMISSIONS AN D PERUSED THE RECORDS. WE FIND THAT AO HAS COMPUTED DISALLO WANCE U/S. 14A. HE HAS FOLLOWED RULE 8D. HOWEVER, IT IS THE SUBMIS SION OF THE LD. COUNSEL OF THE ASSESSEE THAT DETAIL SUBMISSIONS WER E MADE BEFORE THE AUTHORITIES BELOW TO THE EFFECT THAT LOAN FUND S WERE NOT USED FOR MAKING INVESTMENT. ASSESSEE HAD SUFFICIENT OWN FUN DS. HOWEVER, THE LD. CIT(A) HAS NOTED THAT ASSESSEE HAS NOT SUBS TANTIATED THIS ITA NO. 5880/DEL/2012 3 ASPECT OF THE ARGUMENT. NOW THE LD. COUNSEL OF THE ASSESSEE IS REITERATING THAT DETAIL SUBMISSION WERE MADE IN TH IS REGARD. 7.1 WE FIND THAT IN THE FACTS AND CIRCUMSTANCES O F THE CASE, INTEREST OF JUSTICE WILL BE SERVED, IF THE ISSUE IS REMITTED TO THE FILES OF THE AO. ACCORDINGLY, THE ISSUE IS REMITTED TO THE FILE OF THE AO. THE AO IS DIRECTED TO EXAMINE THE SUBMISSIONS OF TH E ASSESSEE AND ACCORDINGLY, CONSIDER THE ISSUE AFRESH. 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 11/10/2013. SD/- SD/- [ [[ [DIVA SINGH DIVA SINGH DIVA SINGH DIVA SINGH] ]] ] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER DATE 11/10/2013 SRBHATNAGAR SRBHATNAGAR SRBHATNAGAR SRBHATNAGAR COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: - -- - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR, ITAT, DELHI BENCHES