MANUBHAI MANGALDAS SECURITIES P. LTD, MUMBAI V. DCIT CIR 2(2)(OSD), MUMBAI

ITA 5970/MUM/2010

• Counselvise Citation: 597019914 RSA 2010
• Duration Of Justice: 1 year(s) 4 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-12-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 30-07-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C G K NAIR
• Assessee Lawyers: DEEPAK P TIKEKA R; Y M AGARWA LA
• Keywords: Opportunity of being heard
• Section: 10; 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIB UNAL MUMBAI BENCHES B, MUMBAI BEFORE SHRI R.S.SYAL, AM AND SHRI D.K.AGARWAL, JM ITA NO.5970/MUM/2010 : ASST. YEAR 2007-2008 M/S.MANUBHAI MANGALDAS SECURITIES PRIVATE LIMITED, HERITAGE PLAZA, 4 TH FLOOR J.P.ROAD, OPP:INDIAN OIL NAGAR ANDHERI (WEST), MUMBAI 400 053. PAN : AAACM8035G. THE DY.COMMISSIONER OF INCOME-TAX CIRCLE 2(2)(OSD) MUMBAI. (APPELLANT) VS. (RESPONDENT) APPELLANT BY : S/SHRI DEEPAK P.TIKEKAR & Y.M.AGARWA LA RESPONDENT BY : SHRI C.G.K.NAIR DATE OF HEARING : 05.12.2011 DATE OF PRONOUNCEMENT : 07 .12.2011 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 28.06.2010 IN RELATION TO THE ASSESSMENT YEAR 2007-2008. 2. THE ONLY GROUND RAISED IN THIS APPEAL IS AGAINST THE CONFIRMATION OF DISALLOWANCE OF RS.18,45,766 U/S 14A OF THE ACT. BR IEFLY STATED THE FACTS OF THE CASE ARE THAT THE ASSESSEE EARNED DIVIDEND INCOME E XEMPT U/S 10 AMOUNTING TO RS.10,00,468. THE ASSESSING OFFICER DISALLOWED PROP ORTIONATE EXPENSES AMOUNTING TO RS.18,45,766 AS PER RULE 8D U/S 14A OF THE ACT. NO RELIEF WAS ALLOWED IN THE FIRST APPEAL. THE ASSESSEE IS IN APP EAL AGAINST THE ADDITION SUSTAINED. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE RELEVANT MATERIAL ON RECORD. IT IS NOTED THAT THE QUESTION OF MAKING DIS ALLOWANCE U/S 14A IS NO MORE RES INTEGRA IN VIEW OF THE JUDGMENT OF THE HONBLE BOMBAY HI GH COURT IN GODREJ & BOYCE LTD. MFG. CO. VS. DCIT [(2010) 328 I TR 81 (BOM)] HOLDING THAT THE PROVISIONS OF SECTION 14A ARE APPLICABLE IN CIRCUMSTANCES AS ARE ITA NO.5970/MUM/2010. M/S.MANUBHAI MANGALDAS SECURITIES PVT.LTD.. 2 PREVAILING PRESENTLY AND THE DISALLOWANCE HAS TO BE WORKED OUT BY THE AO ON SOME `REASONABLE BASIS AND NOT RULE 8D. UNDER SUCH CIRCUMSTANCES, WE SET ASIDE THE IMPUGNED ORDER AND RESTORE THE MATTER TO THE FILE OF THE AO FOR DECIDING THE QUANTUM OF DISALLOWANCE, AS PER THE AF ORE-NOTED JUDGMENT, AFTER ALLOWING A REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 5. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATIST ICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 07 TH DAY OF DECEMBER, 2011. SD/- SD/- (D.K.AGARWAL) (R.S.SYAL) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI : 07TH DECEMBER, 2011. DEVDAS* COPY TO : 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT CONCERNED 4. THE CIT(A)-5, MUMBAI. 5. THE DR/ITAT, MUMBAI. 6. GUARD FILE. TRUE COPY. BY ORDER ASSISTANT REGISTRAR, ITAT, MUMBAI.