KINETIC CHEMICALS & EQUIPMENTS P. LTD, MUMBAI V. ITO 3(2)(3), MUMBAI

ITA 6561/MUM/2009

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 9003 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-01-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 11-11-2010
• Assessment Year: 2006-2007
• Appeal Filed On: 24-12-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHRAVAN KUMAR
• Assessee Lawyers: KIRIT MEHTA
• Keywords: Opportunity of being heard
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES A, MUMBAI BEFORE SHRI R.S.SYAL, AM AND SHRI R.S.PADVEKAR, JM ITA NO.6561/MUM/2009 : ASST.YEAR 2006-2007 M/S.KINETIC CHEMICALS & EQUIPMENTS PRIVATE LIMITED, 55/58, JOLLY MAKER CHAMBER NO.2, NARIMAN POINT MUMBAI 400 021. PA NO.AAACK1783F. VS. THE INCOME TAX OFFICER WARD 3(2)-3 MUMBAI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI KIRIT MEHTA RESPONDENT BY : SHRI SHRAVAN KUMAR O R D E R PER R.S.SYAL, AM : THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDER PASSED BY THE COMMISSIONER OF INCOME-TAX (APPEALS) ON 09.11.2009 IN RELATION TO THE ASSESSMENT YEAR 2006-2007. 2. THE ONLY ISSUE IN THIS APPEAL IS AGAINST THE CON FIRMATION OF DISALLOWANCE MADE BY THE ASSESSING OFFICER U/S.14A. THE ASSESSEE IS ENGAGED IN THE BUSINESS OF INVESTMENTS AND FINANCE. THE A.O. COMPUTED THE DISA LLOWANCE U/S.14A READ WITH RULE 8D AT RS.19,98,412. THE LEARNED CIT(A) ALLOWE D PART RELIEF. THE ASSESSEE IS IN APPEAL AGAINST THE ADDITION SUSTAINED. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE RELEVANT MATERIAL ON RECORD. IT IS NOTED THAT THE QUESTION OF MAKING DIS ALLOWANCE U/S 14A IS NO MORE RES INTEGRA IN VIEW OF THE RECENT JUDGMENT OF THE HONBLE BOM BAY HIGH COURT IN GODREJ& BOYCE LIMITED VS. ACIT [(2010) 328 ITR 81 ( BOM.)] HOLDING THAT THE PROVISIONS OF SECTION 14A ARE APPLICABLE IN CIRCUMS TANCES AS ARE PREVAILING PRESENTLY AND THE DISALLOWANCE HAS TO BE WORKED OUT BY THE AO ON SOME `REASONABLE BASIS AND NOT RULE 8D. UNDER SUCH CIRC UMSTANCES, WE SET ASIDE THE IMPUGNED ORDER AND RESTORE THE MATTER TO THE FILE O F THE AO FOR DECIDING THE ITA NO.6561/MUM/2009 M/S.KINETIC CHEMICALS & EQUIPMENTS PVT.LTD. 2 QUANTUM OF DISALLOWANCE, IF ANY, AS PER THE AFORE N OTED JUDGMENT, AFTER ALLOWING A REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESS EE. 4. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATIST ICAL PURPOSES. ORDER PRONOUNCED ON THIS 7 TH DAY OF JANUARY, 2011. SD/- SD/- (R.S.PADVEKAR) (R.S.SYAL) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI : 7 TH JANUARY, 2011. DEVDAS* COPY TO : 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT CONCERNED 4. THE CIT(A) - VII, MUMBAI. 5. THE DR/ITAT, MUMBAI. 6. GUARD FILE. TRUE COPY. BY ORDER ASSISTANT REGISTRAR, ITAT, MUMBAI.