MANGAL CREATION PVT. LTD., MUMBAI V. DCIT 4 (2)(2), MUMBAI

ITA 6482/MUM/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 4581 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 3 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-02-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 13-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SARISH CHANDRA RAJORE
• Keywords: Earning of tax free income
• Section: 14A; 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC , MUMBAI BEFORE SHRI R. C. SHARMA, ACCOUNTANT MEMBER & SHRI PAWAN SINGH, JUDICIAL MEMBER ITA NO. 6482 /MUM/ 2018 : A.Y : 2012 - 13 M/S. MANGAL CREATION PRIVATE LIMITED 77, ABCD, GOVT INDUSTRIAL ESTA TE CHARKOP, KANDIVALI, MUMBAI 400 067 MAHARASHTRA VS. THE CIT(A) - 2, MUMBAI PAN NO: AAACD0541N ASSESSEE BY : NONE REVENUE BY : SHRI SARISHCHANDRA RAJORE DATE OF HEARING : 24/02/2020 DATE OF PRONOUNCEMENT : 24 /02/2020 O R D E R PER R.C. SHA RMA , ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) - 2, MUMBAI DATED 05/09/2018 FOR A.Y.2012 - 13 IN THE MATTER OF ORDER PASSED U/S.143(3) OF THE INCOME TAX ACT, 1961. 2. THE ONLY GRIEVANCE OF THE ASSESSEE RELATES TO D ISALLOWANCE MADE U/S.14A OF THE IT ACT. 3. NOBODY APPEARED ON BEHALF OF THE ASSESSEE INSPITE OF ISSUANCE OF NOTICE, BENCH THEREFORE, DECIDED TO HEAR AND PASS THE ORDER AFTER HEARING THE LD. DR AND CONSIDERING THE MATERIAL PLACED ON RECORD. ITA NO. 6482/MUM/2018 M/S. MANGAL CREATION P. LTD ., 2 4. WE HAVE GON E THROUGH THE ORDERS OF THE AUTHORITIES BELOW AND FOUND THAT ASSESSEE IS ENGAGED IN EXPORT OF MADE - UP AND HANDICRAFTS. DURING THE COURSE OF SCRUTINY ASSESSMENT, AO COMPUTED DISALLOWANCE U/S. 14A WITH RESPECT TO THE EXEMPT INCOME. IT WAS CONTENTION OF ASSES SEE THAT INVESTMENT ON WHICH ASSESSEE HAS NOT GOT ANY EXEMPT INCOME SHOULD BE EXCLUDED WHILE COMPUTING DISALLOWANCE U/S.14A. HOWEVER, AO DID NOT CONSIDER THE SAME. AS PER OUR CONSIDERED VIEW, NO DISALLOWANCE IS WARRANTED ON THE INVESTMENTS WHICH DID NOT YI ELD ANY EXEMPT INCOME. ACCORDINGLY, WE RESTORE THE MATTER BACK TO THE FILE OF THE AO FOR RECOMPUTING DISALLOWANCE U/S.14A AFTER EXCLUDING THE INVESTMENTS ON WHICH ASSESSEE DID NOT DERIVE ANY EXEMPT INCOME. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLO WED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 24 / 02 /20 20 SD/ - ( PAWAN SINGH ) SD/ - (R.C.SHARMA) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI; DATED 24 / 02 /20 2 0 KARUNA SR. PS COPY OF THE ORDER FORWARDED TO : BY ORDER, (ASSTT. REGISTRAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//