Santosh Kumar Tibrewala-HUF, Kolkata V. DCIT, Central Circle - XXVII, Kolkata, Kolkata

ITA 660/KOL/2010

• Counselvise Citation: 66023514 RSA 2010
• Duration Of Justice: 1 year(s) 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-06-2011
• Appeal Filed By: Assessee
• Bench Allotted: B
• Next Hearing Date: 08-06-2011
• Assessment Year: 2007-2008
• Appeal Filed On: 06-04-2010
• Court: TRIBUNAL
• Department Lawyers: S SINHA
• Assessee Lawyers: RAVI TULSIYAN
• Section: 14A

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL, BEN CH B, KOLKATA () BEFORE . .. . . .. . , , , , , SHRI B.R.MITTAL, JUDICIAL MEMBER. /AND . .. .!' !'!' !'. .. . , #$ SHRI C.D.RAO, ACCOUNTANT MEMBER %& %& %& %& ' ' ' ' / ITA NO . 660/KOL/2010 () *+/ ASSESSMENT YEAR : 2007-08 (-. / APPELLANT ) SANTOSH KUMAR TIBREWALA, HUF, KOLKATA (PAN: AAIHS 7823 K ) - ( - - VERSUS - . (01-./ RESPONDENT ) D.C.I.T., CENTRAL CIRCLE- XXVII, KOLKATA -. 2 3 #/ FOR THE APPELLANT: SHRI RAVI TULSIYAN 01-. 2 3 #/ FOR THE RESPONDENT: SHRI S.SINHA #4 / ORDER ( (( ( . .. .!' !'!' !'. .. . ) )) ), , , , #$ PER SHRI C.D.RAO, AM THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE O RDER DATED 15.01.2010 OF THE CIT(A)-CENTRAL-II, KOLKATA PERTAINING TO A.YR. 2007 -08. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS O F APPEAL :- 1. THE ORDERS PASSED BY THE AO AND ALSO THE CIT(A ) TO THE EXTENT TO WHICH THEY ARE AGAINST THE APPELLANT ARE ARBITRARY, ERRON EOUS, INVALID AND BAD IN LAW. 2. THE LEARNED A.O. ERRED IN MAKING DISALLOWANCE OF RS.3,86,818/- U/S 14A OF THE INCOME TAX ACT, 1961 READ WITH RULE 8D AND THE CIT(A) ERRED IN NOT ONLY UPHOLDING THE SAID DISALLOWANCE BUT EVEN IN ENHANCI NG THE SAME TO RS.4,18,296/- AND THAT TOO WITHOUT SERVING ANY PROP ER ENHANCEMENT NOTICE. 3. THE APPELLANT CRAVES LEAVE TO AMEND, ALTER, MODI FY, ADD TO, ABRIDGE AND/OR RESCIND ANY OR ALL OF THE ABOVE GROUNDS. 3. AT THE TIME OF HEARING, THE LD. COUNSEL APP EARING ON BEHALF OF THE ASSESSEE HAS SUBMITTED THAT AS PER THE DECISION OF THE HONBLE B OMBAY HIGH COURT IN THE CASE OF 2 GODREJ AND BOYCE MFG. CO. LTD. VS DCIT 328 ITR 81 ( BOM) RULE 8D IS NOT APPLICABLE FOR THE ASSESSMENT YEAR INVOLVED IN THIS APPEAL. IT WAS FURTHER CONTENDED THAT THE LD. CIT(A) HAS ENHANCED THE DISALLOWANCE W ITHOUT GIVING PROPER ENHANCEMENT NOTICE. THEREFORE, HE REQUESTED TO SET ASIDE THE MA TTER TO THE FILE OF THE AO TO RECONSIDER THE ISSUE BASED ON THE FACTS AND CIRCUMS TANCES OF THE CASE. 4. ON THE OTHER HAND, THE LD. DR APPEARING ON B EHALF OF THE REVENUE COULD NOT CONTRADICT THE SUBMISSIONS OF THE LD. AR. 5. AFTER HEARING THE RIVAL SUBMISSIONS AND ON CA REFUL PERUSAL OF THE MATERIALS AVAILABLE ON RECORD KEEPING IN VIEW OF THE FACT THA T AS PER THE DECISION OF THE HONBLE BOMBAY HIGH COURT IN THE CASE OF GODREJ AND BOYCE M FG. PVT. LTD. (SUPRA) RELIED UPON BY THE LD. COUNSEL FOR THE ASSESSEE, RULE 8D I S NOT APPLICABLE IN THE ASSESSMENT YEAR UNDER CONSIDERATION. IT IS FURTHER OBSERVED TH AT THE LD. CIT(A) HAS ENHANCED THE DISALLOWANCE WITHOUT GIVING PROPER ENHANCEMENT NOTI CE TO THE ASSESSEE. THEREFORE WE CONSIDER IT TO SET ASIDE THE ISSUE TO THE FILE OF T HE AO WITH THE DIRECTION TO RECONSIDER THE ISSUE BASED ON THE FACTS AND CIRCUMSTANCES OF T HE CASE AFTER GIVING DUE OPPORTUNITY TO THE ASSESSEE OF BEING HEARD AS PER LAW. 6. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 08.06.2011. SD/- SD/- . .. . . .. . , , , , B.R.MITTAL, JUDICIAL MEMBER . .. .!' !'!' !'. .. . , ,, , #$ #$ #$ #$ , C.D.RAO, ACCOUNTANT MEMBER. ( (( ('$ '$ '$ '$) )) ) DATE: 08.06.2011. R.G.(.P.S.) 3 #4 2 0& 5#&*6- COPY OF THE ORDER FORWARDED TO: 1. SANTOSH KUMAR TIBREWALA-HUF, 103, HEM CHANDRA NASKA R ROAD, KOLKATA-700010. 2 THE D.C.I.T., CENTRAL CIRCLE-XXVII, KOLKATA 3. THE CIT, 4. THE CIT(A)-CENTRAL-II, KOLKATA 5. DR, KOLKATA BENCHES, KOLKATA 1& 0/ TRUE COPY, #4(;/ BY ORDER, DEPUTY /ASST. REGISTRAR , ITAT, KOLKATA BENCHES