Mastek Limited, Ahmedabad V. The Dy.CIT, (OSD) - 1, Circle-4, Ahmedabad

ITA 6/AHD/2015

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 6165 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 1 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-02-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Next Hearing Date: 09-06-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 01-01-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Section: 143(3); 14A; 115JB; 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH (BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER) ITA. NO: 6/AHD/2015 (ASSESSMENT YEAR: 2009-10) MASTEK LIMITED 804/805, PRESIDENT HOUSE, OPP. C.N. VIDYALAYA, NEAR AMBAWADI CIRCLE, AMBAWADI, AHMEDABAD- 380 006 V/S THE DEPUTY COMMISSIONER OF INCOME TAX, (OSD)-1, CIRCLE 4, AHMEDABAD (APPELLANT) (RESPONDENT) PAN: AAACM9908Q APPELLANT BY : SHRI URVASHI SHODHAN, AR RESPONDENT BY : SHRI PRASOON KABRA, SR. D.R. ( )/ ORDER DATE OF HEARING : 01 -02-201 8 DATE OF PRONOUNCEMENT : 08 -02-2018 PER N.K. BILLAIYA, ACCOUNTANT MEMBER 1. THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST TH E ORDER OF THE LD. CIT(A)-2, AHMEDABAD DATED 24.11.2014 PERTAINING TO A.Y. 2009- 10. ITA NO. 6/AH D/2015 . A.Y. 2009-1 0 2 2. THE ASSESSEES GRIEVANCE IS TWOFOLD. FIRSTLY, THE A SSESSEE IS AGGRIEVED THAT THE LD. CIT(A) ERRED IN CONFIRMING THE ACTION OF THE A.O. F OR NOTIONAL DISALLOWANCE OF RS. 41,96,477/- COMPUTED U/S. 14A READ WITH RULE 8D WHILE COMPUTING THE BOOK PROFIT U/S. 115JB OF THE ACT AND SECONDLY, THE LD. CIT(A) ERRED IN CONFIRMING THE AFORE-STATED DISALLOWANCE ACCEPTING IT AS MISTAKE APPARENT FROM RECORD RECTIFIABLE U/S. 154 OF THE ACT. 3. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT THE A SSESSMENT WAS FRAMED U/S. 143(3) R.W.S. 144C OF THE ACT VIDE ORDER DATED 28.0 3.2015. THE RETURNED INCOME WAS ASSESSED UNDER NORMAL RATE OF TAX AT RS. 34,31,44,411/- AND THE BOOK PROFIT WAS TAKEN AT RS. 99,79,75,083/- FOR THE PURPOSE OF 115JB OF THE ACT. 4. VIDE NOTICE DATED 13.01.2014, THE A.O. FORMED A BEL IEF THAT THERE IS A MISTAKE APPARENT FROM RECORD WHICH NEEDS TO BE RECTIFIED BE CAUSE DISALLOWANCE OF RS. 41,46,720/- MADE U/S. 14A OF THE ACT HAS NOT BEEN C ONSIDERED FOR WORKING OF BOOK PROFIT U/S. 115JB OF THE ACT. 5. THE MISTAKE WAS RECTIFIED AND RS. 41,46,720/- WAS A DDED TO THE BOOK PROFIT FOR THE COMPUTATION OF BOOK PROFIT U/S. 115JB OF THE AC T. 6. ASSESSEE CARRIED THE MATTER BEFORE THE LD. CIT(A) B UT WITHOUT ANY SUCCESS. 7. BEFORE US, THE LD. COUNSEL FOR THE ASSESSEE POINTED OUT THAT THIS ISSUE HAS BEEN CONSIDERED BY THE TRIBUNAL SPECIAL BENCH, DELHI IN THE CASE OF VIREET INVESTMENT PVT. LTD. IN ITA NO. 502/DELHI/2012. PER CONTRA, THE LD. D.R. ITA NO. 6/AH D/2015 . A.Y. 2009-1 0 3 STRONGLY SUPPORTED THE FINDINGS OF THE LOWER AUTHOR ITIES AND RELIED UPON THE DECISION IN THE CASE OF GSFC 36 TAXMANN.COM 230. 8. WE HAVE GIVEN A THOUGHTFUL CONSIDERATION TO THE ORD ERS OF THE AUTHORITIES BELOW. IN OUR CONSIDERED OPINION, BY NOT CONSIDERI NG THE DISALLOWANCE MADE U/S. 14A FOR THE PURPOSES OF THE COMPUTATION OF BOO K PROFIT U/S. 115JB A RECTIFIABLE MISTAKE WAS APPARENT FROM THE RECORD AN D THEREFORE, THERE IS NO INFIRMITY IN RECTIFYING THE ORDER U/S. 154 OF THE A CT. HOWEVER, WE FIND THAT THE TRIBUNAL SPECIAL BENCH, DELHI HAD THE OCCASION TO C ONSIDER THIS ISSUE AND HAS HELD THAT DISALLOWANCES MADE U/S. 14A ARE NOT TO BE CONSIDERED FOR THE COMPUTATION OF BOOK PROFIT U/S. 115JB OF THE ACT. R ESPECTFULLY FOLLOWING THE SAME, WE DIRECT THE A.O. TO DELETE RS. 41,46,720/- FORM THE COMPUTATION OF BOOK PROFIT U/S. 115JB OF THE ACT. 9. APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 08- 02- 20 18 SD/- SD/- (MAHAVIR PRASAD) (N. K. BILLAIYA) JUDICIAL MEMBER TRUE COPY ACCOUNTANT MEMBER AHMEDABAD: DATED 08/02/2018 RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AHME DABAD