CHINTAN BABARIA, MUMBAI V. JCIT 14(3), MUMBAI

ITA 6163/MUM/2012

• Counselvise Citation: 616319914 RSA 2012
• Duration Of Justice: 2 year(s) 3 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-01-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Next Hearing Date: 31-12-2014
• Assessment Year: 2009-2010
• Appeal Filed On: 08-10-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: NEIL PHILIP
• Section: 14A

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, MUMBAI BEFORE HONBLE S/SHRI H.L. KARWA, PRESIDENT AND B. R.BASKARAN (AM) . . , . . , ./ I.T.A. NO.6163/MUM/2012 ( / ASSESSMENT YEAR :2009-10) CHINTAN BABARIA, 98, PRINCES STREET, MANSOOR BUILDING, MUMBAI-400002 / VS. JT. COMMISSIONER OF INCOME TAX -14(3), EARNEST HOUSE, 3 RD FLOOR, NARIMAN POINT, MUMBAI-400021 ( / APPELLANT) .. ( ! / RESPONDENT) ./ #$ ./ PAN/GIRNO.:AICPB4114G % / APPELLANT BY : SHRI NISHIT GANDHI ! & % / RESPONDENT BY SHRI NEIL PHILIP ' ( & ) * / DATE OF HEARING :31.12.2014 +, & ) * /DATE OF PRONOUNCEMENT : 16.01.2015 / O R D E R PER B.R.BASKARAN, ACCOUNTANT MEMBER: THE ASSESSEE HAS FILED THIS APPEAL CHALLENGING THE ORDER DATED 25- 06-2012 PASSED BY LD CIT(A)-25, MUMBAI AND IT RELAT ES TO THE ASSESSMENT YEAR 2009-10. THE ASSESSEE IS AGGRIEVED BY THE DEC ISION OF LD CIT(A) IN CONFIRMING THE DISALLOWANCE MADE U/S 14A OF THE ACT . 2. WE HAVE HEARD THE PARTIES AND PERUSED THE RE CORD. THE CONTENTION OF THE ASSESSEE IS THAT HIS OWN FUNDS ARE IN EXCESS OF THE LOAN FUNDS. FURTHER THE LOAN FUNDS HAVE BEEN TAKEN FOR SPECIFIC PURPOSES, I.E., FOR PURCHASE OF TRUCKS AND LORRIES, SINCE THE ASSESSEE IS A TRANSPORT OPERATOR. HE FURTHER SUBMITTED THAT THE INTEREST EXPENSES CLA IMED BY THE ASSESSEE RELATE TO THE LOAN TAKEN FOR PURCHASE OF TRUCKS AND LORRIES. ACCORDINGLY, HE 6163/M/2012 2 SUBMITTED THAT THERE IS NO REQUIREMENT TO MAKE ANY DISALLOWANCE OUT OF INTEREST EXPENDITURE U/S 14A OF THE ACT. 3. A PERUSAL OF THE FINANCIAL STATEMENTS FILED BY THE ASSESSEE IN THE PAPER BOOK WOULD SHOW THAT THE ASSESSEE HAS CLAIMED INTEREST EXPENSES RELATING TO THE LOAN TAKEN FOR PURCHASE OF TRUCKS A ND LORRIES. HENCE WE FIND MERIT IN THE SUBMISSIONS OF THE ASSESSEE. ACC ORDINGLY, WE HOLD THAT THE INTEREST EXPENDITURE IS NOT REQUIRED TO BE DISA LLOWED U/S 14A OF THE ACT. WITH REGARD TO THE DISALLOWANCE OF ADMINISTRA TIVE EXPENSES, THE LD A.R DID NOT PRESS THE SAME IN VIEW OF THE SMALLNESS OF THE AMOUNT. ACCORDINGLY WE CONFIRM THE DISALLOWANCE OF ADMINIST RATIVE EXPENSES MADE U/S 14A OF THE ACT. THE ORDER OF LD CIT(A) STANDS MODIFIED ACCORDINGLY. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS P ARTLY ALLOWED. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 16 TH JAN,2015. +, ' - ./ 0 1 16 TH JAN 2015 , & 2( 3 SD SD ( . . / H.L. KARWA) ( . . , / B.R. BASKARAN ) / PRESIDENT / ACCOUNTANT MEMBER . ' ( MUMBAI: 16TH JAN, 2015. . . ./ SRL , SR. PS ! ' / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. ! / THE RESPONDENT. 3. ' 7) ( ) / THE CIT(A)- CONCERNED 4. ' 7) / CIT CONCERNED 5. 6. 89 2 ): , * : , . ' ( / DR, ITAT, MUMBAI CONCERNED 2 ; < ( / GUARD FILE. = ' / BY ORDER, TRUE COPY > # (ASSTT. REGISTRAR) * : , . ' ( /ITAT, MUMBAI