M/S. T.W.BHOJWANI LEASING PVT. LTD., MUMBAI V. ITO 7(3)(3), MUMBAI

ITA 670/MUM/2011

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 71985 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 10 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-12-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Next Hearing Date: 10-12-2013
• Assessment Year: 2005-2006
• Appeal Filed On: 24-01-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ALOK SAXENA
• Keywords: Opportunity of being heard; Earning of tax free income
• Section: 234B; 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH H, MUMBAI BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER AN D DR. S.T.M. PAVALAN, JUDICIAL MEMBER ITA NO. 670/MUM/2011 ASSESSMENT YEAR: 2005-06 M/S. T.W. BHOJWANI LEASING PRIVATE LTD. 610/611, NARIMAN KENDRA, NEAR MAHALAXMI GLASS WORKS, DR. E. MOSSES ROAD, MAHALAXMI. MUMBAI-. 400 011 VS. ITO 7(3)(3) MUMBAI. (APPELLANT) (RESPONDENT) PERMANENT ACCOUNT NO. :- AAACT 2741 E APPELLANT BY : SHRI ALOK SAXENA RESPONDENT BY : SHRI RAVI PRAKASH DATE OF HEARING : 10.12.2013 DATE OF PRONOUNCEMENT : 18.12.2013 O R D E R PER DR. S.T.M. PAVALAN, JM: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF THE LD.CIT(A) -13, MUMBAI DATED 21.09.2010 FOR THE ASSE SSMENT YEAR 2005-06. 2. IN THIS APPEAL THE ASSESSEE HAS RAISED THE FOLLO WING GROUNDS:- 1. THE LEARNED CIT(A) HAS ERRED N LAW, FACTS AND CI RCUMSTANCES OF THE CASE BY DISALLOWING THE EXPENDITURE WHERE THER E IS NO NEXUS BETWEEN THE EXPENDITURES AND EXEMPT INCOME. 2. THE LEARNED CIT(A) HAS ERRED N LAW, FACTS AND C IRCUMSTANCES OF THE CASE BY DISALLOWING THE EXPENDITURE OF RS.951,690/ - WHICH IS FAR MORE EXCESS AS COMPARED TO THE EXEMPT INCOME EARNED OF RS.107,332/-. ITA NO. 670/MUM/2011 M/S. T.W. BHOJWANI LEASING PRIVATE LTD. ASSESSMENT YEAR: 2005-06 2 3. THE LEARNED CIT(A) HAS ERRED IN LAW, FACTS AND CIRCUMSTANCES OF THE CASE BY WORKING OUT THE DISALLOWANCE U/S 14A ON AN AD HOC METHOD. 4. THE LEARNED ASSESSING OFFICER HAS ERRED IN LAW, FACTS AND CIRCUMSTANCES OF THE CASE BY INITIATING INTEREST U/S 234B & 234C. 3. AT THE OUTSET, IT HAS BEEN BROUGHT TO OUR NOTICE THAT THE TRIBUNAL IN THE ASSESSEES OWN CASE IN ITA NO. 86/MUM/2012 FOR ASSE SSMENT YEAR 2006-07, WHILE ADJUDICATING SIMILAR ISSUE, HAS DIRECTED THE AO TO MAKE DISALLOWANCE, IF ANY, IN THE LIGHT OF THE DECISION IN THE CASE OF GODREJ BOYCE M ANUFACTURING COMPANY LTD. DCIT AND OTHERS (2010) 328 ITR 81 (BOM) AFTER ALLOWING R EASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. HAVING NOTED THAT THE ASSESS MENT YEAR IN THE INSTANT CASE IS 2005-06 AND IN THE ABSENCE OF ANY DISTINGUISHING FA CT BROUGHT ON RECORD BY THE REVENUE, WE, BY FOLLOWING THE SAID DECISION IN THE ASSESSEES OWN CASE SET ASIDE IN THIS MATTER TO THE FILE OF THE AO WITH THE SIMILAR DIRECTION GIVEN BY THE TRIBUNAL IN THE ASSESSEES OWN CASE FOR THE A.Y. 2006-07 AS AFOREME NTIONED. 4. AS REGARDS THE ISSUE ON INITIATING LEVY OF INTER EST UNDER SECTIONS 234B & 234C, WE DIRECT AO TO ALLOW THE CONSEQUENTIAL RELIEF TO T HE ASSESSEE IN RESPECT OF THE CLAIM. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 18 TH DAY OF DECEMBER, 2013. SD/- SD/- (D. KARUNAKARA RAO) (DR. S.T.M. PAVALAN) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 18.12.2013. *SRIVASTAVA COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT(A) CONCERNED, MUMBAI THE DR H BENCH //TRUE COPY// BY ORDER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.