PUKHRAJ SHREEMALJI JAIN, MUMBAI V. ITO WARD 19(2)(5), MUMBAI

ITA 6391/MUM/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 2454 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-12-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 05-11-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R BHOOPATILD
• Keywords: Earning of tax free income; Deemed dividend
• Section: 143(3); 14A

Judgement Text

ITA NO.6391/MUM/2018 SHRI PUKHRAJ SHREEMALJI JAIN ASSESSMENT YEAR :2012-13 1 - IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI . . , , BEFORE HONBLE SHRI C.N. PRASAD, JM AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM ./ I.T.A. NO.6391/MUM/2018 ( / ASSESSMENT YEAR: 2012-13 ) SHRI PUK H RAJ SHREEMALJI JAIN 137, T.P. STREET 6 TH KUMBHARWADA LANE MUMBAI-400 004. / VS. ITO, WARD - 19(2)(5) MATRU MANDIR BLDG. TARDEO ROAD, OPP. BHATIA HOSPITAL GRANT ROAD (W), MUMBAI-400 007. !'# ./ ./PAN/GIR NO. AAJPJ-8080-C ( ! /APPELLANT ) : ( ' ! / RESPONDENT ) ASSESSEE BY : NONE REVENUE BY : SHRI R. BHOOPATI-LD. DR / DATE OF HEARING : 03/12/2019 / DATE OF PRONOUNCEMENT : 03/12/2019 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. AFORESAID APPEAL BY ASSESSEE FOR ASSESSMENT YEAR [IN SHORT REFERRED TO AS AY] 2012-13 CONTEST THE ORDER OF L D. COMMISSIONER OF INCOME-TAX (APPEALS)-51, MUMBAI, [IN SHORT REFERRED TO AS CIT(A)], APPEAL NO. CIT(A)-51/IT/66/19(2)(5)/2017-18 DATED 2 4/08/2018 QUA CONFIRMATION OF CERTAIN DISALLOWANCES. ITA NO.6391/MUM/2018 SHRI PUKHRAJ SHREEMALJI JAIN ASSESSMENT YEAR :2012-13 2 2. WHEN THE APPEAL WAS CALLED FOR HEARING, NONE APP EARED FOR ASSESSEE AND THEREFORE, THE MATTER WAS PROCEEDED WI TH EX-PARTE QUA THE ASSESSEE ON THE BASIS OF MATERIAL ON RECORD AND AFT ER HEARING LEARNED DEPARTMENTAL REPRESENTATIVE. 3.1 FACTS IN BRIEF ARE THAT THE ASSESSEE BEING RESI DENT INDIVIDUAL WAS ASSESSED FOR YEAR UNDER CONSIDERATION U/S 143(3) ON 20/03/2105 WHEREIN THE INCOME OF THE ASSESSEE WAS DETERMINED AT RS.10. 70 LACS AFTER CERTAIN ADDITIONS / DISALLOWANCES AS AGAINST RETURN ED INCOME OF RS.5.06 LACS FILED BY THE ASSESSEE ON 18/09/2012. 3.2 THE ASSESSEE WAS SADDLED WITH DISALLOWANCE U/S 14A FOR RS.1.64 LACS, COMPUTED @0.5% OF INVESTMENTS HELD BY THE ASS ESSEE. ANOTHER ADDITION OF RS.4 LACS WAS MADE INVOKING THE PROVISI ONS OF DEEMED DIVIDEND U/S 2(22)(E), BEING UNSECURED LOAN RECEIVE D BY ASSESSEE FROM AN ENTITY NAMELY ALLIED FEROMET PVT. LTD., AN ENTIT Y IN WHICH THE ASSESSEE HELD SUBSTANTIAL SHAREHOLDING OF MORE THAN 10%. 4. UPON FURTHER APPEAL, THE LD. CIT(A) DIRECTED FOR EXCLUSION OF INVESTMENTS MADE BY THE ASSESSEE IN PROPERTY, WHILE COMPUTING DISALLOWANCE U/S 14A. THE LD. AO WAS ALSO DIRECTED TO CONSIDER ONLY EXEMPT INCOME YIELDING INVESTMENTS WHILE COMPUTING THE SAID DISALLOWANCE. HOWEVER, THE ADDITION MADE U/S 2(22)( E) WERE SUSTAINED IN VIEW OF THE FACT THAT LENDING WAS NOT FOUND TO BE S UBSTANTIAL PART OF LENDER ENTITY AND THE OTHER CONDITIONS OF SEC. 2(22 )(E) WERE FULFILLED. AGGRIEVED, THE ASSESSEE IS UNDER FURTHER APPEAL BEF ORE US. 5. UPON DUE CONSIDERATION, WE FIND THAT THE FACTUAL MATRIX HAS DULY BEEN CONSIDERED IN RIGHT PERSPECTIVE BY LD. FIRST A PPELLATE AUTHORITY. ITA NO.6391/MUM/2018 SHRI PUKHRAJ SHREEMALJI JAIN ASSESSMENT YEAR :2012-13 3 THERE IS NO MATERIAL ON RECORD WHICH WOULD WARRANT US TO DEVIATE FROM THE STAND OF LD. CIT(A). THEREFORE, WE CONFIRM THE SAME. 6. THE APPEAL STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 03 RD DECEMBER, 2019. SD/- SD/- (C.N. PRASAD) (MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 03/12/2019 SR.PS, JAISY VARGHESE '<=>?'> / COPY OF THE ORDER FORWARDED TO : 1. ! / THE APPELLANT 2. ' ! / THE RESPONDENT 3. + ( ) / THE CIT(A) 4. + / CIT CONCERNED 5. % , , / DR, ITAT, MUMBAI 6. /01 / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.