AZRAEL INVESTMENTS P. LTD, MUMBAI V. ACIT 2(1), MUMBAI

ITA 5920/MUM/2010

• Counselvise Citation: 592019914 RSA 2010
• Duration Of Justice: 1 year(s) 6 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-02-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Next Hearing Date: 08-02-2012
• Assessment Year: 2007-2008
• Appeal Filed On: 28-07-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V V SHASTRI
• Assessee Lawyers: S L PARAB
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL H BENCH, MUMBAI BEFORE SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER, A ND SHRI R.S. PADVEKAR, JUDICIAL MEMBER ITA NO. 5920/MUM./2010 (ASSESSMENT YEAR : 2007-08 ) M/S. AZRAEL INVESTMENTS LTD. MAHINDRA TOWERS, DR. G.M. BHOSALE MARG, P.K. KURNE CHOWK, WORLI MUMBAI 400 018 PAN AAACA5321K .. APPELLANT V/S ASSTT. COMMISSIONER OF INCOME TAX CIRCLE-2(1), AAYAKAR BHAVAN 101, M.K. ROAD, MUMBAI 400 020 .... RESPONDENT ASSESSEE BY : MR. S.L. PARAB REVENUE BY : MR. V.V. SHASTRI DATE OF HEARING 08.02.2012 DATE OF ORDER 15.02.2012 O R D E R PER J. SUDHAKAR REDDY, A.M. THIS APPEAL PREFERRED BY THE ASSESSEE, IS DIRECTED AGAINST THE IMPUGNED ORDER DATED 3 RD JUNE 2010, PASSED BY THE COMMISSIONER (APPEALS)-IV, MUMBAI, FOR ASSESSMENT YEAR 2007-08. THE ONLY GROUND RAISED BY THE ASSESSEE IS, WHETHER OR NOT THE FIRST APPELL ATE AUTHORITY WAS JUSTIFIED IN SUSTAINING THE DISALLOWANCE OF ` 7,22,31,000, MADE BY THE ASSESSING OFFICER UNDER SECTION 14A, OF THE INCOME TAX ACT, 1 961 (FOR SHORT THE ACT ) ATTRIBUTING TO INCOME EXEMPT UNDER SECTION 10(34) O F THE ACT. AZRAEL INVESTMENTS PVT. LTD. ITA NO.5920/MUM./2010 2 2. THE ASSESSEE, DURING THE YEAR UNDER ASSESSMENT, CLA IMED EXEMPTION ON THE INCOME EARNED UNDER THE HEAD DIVIDEND INCOME FOR ` 13,59,96,000, AND UNDER THE HEAD LONG TERM CAPITAL GAINS FOR ` 6,84,052. THE ASSESSING OFFICER MADE DISALLOWANCE UNDER SECTION 14A R/W RUL E 8D, IN ACCORDANCE WITH THE PROPOSITIONS LAID DOWN IN MUMBAI SPECIAL BENCH DECISION OF THE TRIBUNAL IN DAGA CAPITAL MANAGEMENT PVT. LTD. [2008] 119 TTJ (MUM.) 289 (SB). 3. AGGRIEVED, THE ASSESSEE CARRIED THE MATTER BEFORE T HE FIRST APPELLATE AUTHORITY, BUT WITHOUT ANY SUCCESS. THE COMMISSIONE R (APPEALS) CONFIRMED THE ASSESSMENT ORDER PASSED BY THE ASSESSING OFFICE R. BEING AGGRIEVED, THE ASSESSEE IS IN FURTHER APPEAL BEFORE THE TRIBUNAL. 4. RIVAL CONTENTIONS HEARD. ON A CAREFUL CONSIDERATION OF THE FACTS AND CIRCUMSTANCES OF THE CASE AND ON A PERUSAL OF THE P APERS ON RECORD, WE FIND THAT THE COMMISSIONER (APPEALS), WHILE DISPOSING OF F THIS ISSUE, ALSO FOLLOWED MUMBAI SPECIAL BENCH DECISION OF THE TRIBUNAL RENDE RED IN ITO V/S DAGA CAPITAL MANAGEMENT P. LTD. (SUPA). THE HON'BLE JURI SDICTIONAL HIGH COURT IN GODREJ & BOYCE MFG. CO. LTD. V/S DCIT, (2010), 328 ITR 081 (BOM.), HAS PARTLY REVERSED THE DECISION OF MUMBAI SPECIAL BENC H OF THE TRIBUNAL IN DAGA CAPITAL MANAGEMENT P. LTD. (SUPRA). UNDER THESE CIR CUMSTANCES, WE DEEM IT APPROPRIATE TO SET ASIDE THE IMPUGNED ORDER PASSED BY THE COMMISSIONER (APPEALS) AND RESTORE THE ISSUE TO THE FILE OF ASSE SSING OFFICER FOR DENOVO ADJUDICATION IN LINE WITH THE PROPOSITIONS LAID DOW N BY THE HONBLE JURISDICTIONAL HIGH COURT IN GODREJ & BOYCE MFG. CO . LTD. (SUPRA). THE ASSESSING OFFICER IS DIRECTED NOT TO APPLY THE PROV ISIONS OF RULE-8D, FOR THE IMPUGNED ASSESSMENT YEAR. CONSEQUENTLY, THIS GROUND IS ALLOWED FOR STATISTICAL PURPOSES. 5. IN THE RESULT, ASSESSEES APPEALS IS ALLOWED FOR ST ATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 15 TH FEBRUARY 2012 SD/- R.S. PADVEKAR JUDICIAL MEMBER SD/- J. SUDHAKAR REDDY ACCOUNTANT MEMBER MUMBAI, DATED: 15.02.2012 AZRAEL INVESTMENTS PVT. LTD. ITA NO.5920/MUM./2010 3 COPY TO : (1) THE ASSESSEE; (2) THE RESPONDENT; (3) THE CIT(A), MUMBAI, CONCERNED; (4) THE CIT, MUMBAI CITY CONCERNED; (5) THE DR, H BENCH, ITAT, MUMBAI. TRUE COPY BY ORDER PRADEEP J. CHOWDHURY ASSISTANT REGISTRAR SR. PRIVATE SECRETARY ITAT, MUMBAI BENCHES, MUMBAI DATE INITIAL 1. DRAFT DICTATED ON 8.2.2012 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 9.2.2012 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 9.2.2012 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 9.2.2012 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 9.2.2012 SR.PS 6. DATE OF PRONOUNCEMENT 15.2.2012 SR.PS 7. FILE SENT TO THE BENCH CLERK 15.2.2012 SR.PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER