SIGNOR SECURITIES P. LTD, MUMBAI V. ASST. CIT 9(3), MUMBAI

ITA 6198/MUM/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 55993 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 3 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-11-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 09-11-2011
• Assessment Year: 2007-2008
• Appeal Filed On: 13-08-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G P TRIVEDI
• Assessee Lawyers: SANTOSH JAIN
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH E MUMBAI BEFORE SHRI B.R. MITTAL (JUDICIAL MEMBER) AND SHRIT.R. SOOD (ACCOUNTANT MEMBER) ITA NO.6198/MUM/2010 ASSESSMENT YEAR-2007-08 M/S. SIGNOR SECURITIES PVT. LTD., 207, HAKOBA INDUSTRIAL ESTATE, J.B. PATEL ROAD, GOREGAON (E), MUMBAI-400 063 PAN-AACCB 4619F VS. THE ACIT 9(3), AAYAKAR BHAVAN, MUMBAI-400 020 (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI PRAKASH PANDIT & SHRI SANTOSH JAIN RESPONDENT BY: SHRI G.P. TRIVEDI DATE OF HEARING :9.11.2011 DATE OF PRONOUNCEMENT: 18.11.2011 O R D E R PER B.R. MITTAL, JM : THE ASSESSEE HAS FILED THIS APPEAL FOR ASSESSMENT Y EAR 2007-08 AGAINST EX PARTE ORDER OF LD. CIT(A) DT.14.6.2010 ON FOLLOW ING GROUND: THE LD. CIT(A) HAS ERRED IN CONFIRMING THE DISALL OWANCE OF EXPENDITURE OF RS. 14,07,959/- U/S. 14A READ WITH RULE 8D OF THE I.T. ACT. 2. WE HAVE HEARD THE LD. REPRESENTATIVES OF PARTIES . WE OBSERVE THAT ASSESSING OFFICER MADE DISALLOWANCE U/S. 14A READ W ITH RULE 8D OF I.T. RULES IN RESPECT OF DIVIDEND INCOME WHICH IS EXEMPTED IN ASSESSMENT YEAR UNDER CONSIDERATION. THE LD. CIT(A) HAS CONFIRMED SAID A CTION OF AO BY APPLYING DECISION OF SPECIAL BENCH IN THE CASE OF ITO VS DAG A CAPITAL MANAGEMENT PVT. LTD. 312 ITR (AT) 01 (SB)(MUM). ITA NO. 6198/M/2010 2 3. HOWEVER, SAID DECISION OF SPECIAL BENCH OF ITAT HAS BEEN REVERSED BY HONBLE BOMBAY HIGH COURT IN THE CASE OF GODREJ & B OYCE MFG. CO. LTD. 328 ITR 81, WHEREIN IT HAS BEEN HELD THAT RULE 8D OF I. T. RULE IS PROSPECTIVE IN NATURE AND IS APPLICABLE FROM ASSESSMENT YEAR 2008- 09. IN VIEW OF ABOVE, WE SET ASIDE THE ORDERS OF AUTHORITIES BELOW AND RESTO RE THE MATTER TO AO WITH A DIRECTION TO RE-DECIDE THE SAME AFTER GIVING DUE OP PORTUNITY OF HEARING TO ASSESSEE AS PER LAW. THEREFORE GROUND OF APPEAL TAK EN BY ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 4. IN THE RESULT, APPEAL FILED BY ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THIS 18 TH DAY OF NOVEMBER, 2011 SD/- SD/- ( T.R. SOOD) (B.R. MITTAL ) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED 18 TH NOVEMBER, 2011 RJ COPY TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT-CONCERNED 4. THE CIT(A)-CONCERNED 5. THE DR E BENCH TRUE COPY BY ORDER ASSTT. REGISTRAR, I.T.A.T, MUMBAI