BIRLA TMT HOLDINGS PVT.LTD., MUMBAI V. DY.C.I.T. 3(1), MUMBAI

ITA 6709/MUM/2008

• Counselvise Citation: 670919914 RSA 2008
• Duration Of Justice: 3 year(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2011
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: J
• Next Hearing Date: 30-11-2011
• Assessment Year: 2005-2006
• Appeal Filed On: 21-11-2008
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: REENA JHA TRIPATHI
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH J,MUMBAI BEFORE SHRI D.K. AGARWAL (JM) & SHRI B. RAMAKOTAI AH (AM) I.T.A. NO.6709/MUM/2008 (A.Y. 2005-06) BIRLA TMT HOLDINGS PVT. LTD., 201, T.V. INDUSTRIAL ESTATE, 2 ND FLOOR, 52, S.K. AHIRE MARG,WORLI, MUMBAI-400 030. PAN: AABCB5169K. VS. DY. COMMR. OF INCOME-TAX-3(1), MUMBAI. APPELLANT RESPONDENT APPELLANT BY SHRI RONAK DOSHI. RESPONDENT BY MS. R EENA JHA TRIPATHI. DATE OF HEARING 30-11-2011 DATE OF PRONOUNCEMENT 30-11-2011 O R D E R PER D.K. AGARWAL, JM : THIS APPEAL PREFERRED BY THE ASSESSEE IS DIRECTED A GAINST THE ORDER DATED 18-08-2008 PASSED BY THE LD. CIT(A) TAKING THE FOLLOWING GROUN DS OF APPEAL : 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE COMMISSIONER OF INCOME-TAX (APPEALS)-XXVII, MUMBAI [THE CIT (A)] ERRED IN UPHOLDING THE ACTION OF THE ASSESSING OFFI CER (THE A.O.) IN DISALLOWING THE INTEREST EXPENDITURE U/S.36(1)(III) R.W.S. 14A OF THE INCOME TAX ACT, 1961 (THE ACT). 2. THE CIT(A) ERRED IN HOLDING THAT WHERE NO DIVIDEND INCOME (WHICH IS EXEMPT) IS RECEIVED, THE QUESTION OF DISALLOWANCE U /S. 36(1)(III) R.W.S. 14A OF THE ACT DOES NOT ARISE. ITA NO.6709/M/08 BIRLA TMT HOLDINGS P. LTD. 2 3. THE APPELLANT PRAYS THAT THE A.O. BE DIRECTED TO TR EAT THE INTEREST EXPENDITURE INCURRED FOR THE BUSINESS PURPOSE AND T HEREFORE DELETE THE AFORESAID DISALLOWANCE. 2. AT THE TIME OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE SUBMITS THAT IN THIS CASE THE ASSESSEE HAS FILED LETTER DATED 29-11-2011 FOR WITH DRAWAL OF APPEAL, THEREFORE, THE APPEAL FILED BY THE ASSESSEE MAY BE TREATED AS WITHDRAWN, WHICH WAS NOT OBJECTED TO BY THE LD. D.R. 3. AFTER HEARING THE RIVAL PARTIES AND PERUSING THE MATERIAL AVAILABLE ON RECORD, WE FIND MERIT IN THE PLEA OF THE LD. COUNSEL FOR THE ASSESS EE THAT THE ASSESSEE VIDE LETTER DATED 29-11- 2011, INTER ALIA, SUBMITTED AS UNDER : THE ONLY GROUND OF THE APPEAL RELATES TO DISALLOWA NCE OF INTEREST EXPENDITURE U/S. 36(1)(III) R.W.S. 14A OF THE ACT. THE MAIN CONTENTION OF THE CAPTIONED CLIENT WAS THAT SINCE NO EXEMPT IN COME HAS BEEN EARNED DURING THE YEAR AND HENCE, NO DISALLOWANCE U /S.14A OF THE ACT CAN BE MADE. THIS VIEW WAS SUPPORTED BY THE FOLLOWI NG DECISIONS : ACIT VS. LAFARGE INDIA HOLDINGS P.LTD. (19 SOT 12) (MUM). SHREE SHYAM KAMAL FINANCE & LEASING CO. (P) LTD. V. ITO (21 SOT 42)(MUM)(SMC). HOWEVER, DELHI SPECIAL BENCH IN THE CASE OF CHEMINV EST LTD. V. ITO AND VICE VERSA (ITA NO.87 & 4788/DEL/2008) HAS HELD THAT EVEN IF NO DIVIDEND INCOME IS RECEIVED, DISALLOWANCE U/S.14A O F THE ACT CAN BE MADE. FURTHER, OUR CAPTIONED CLIENT IS UNABLE TO COMPILE CERTAIN DETAILS WHICH MAY BE RELEVANT FOR THE PURPOSE OF CAPTIONED APPEAL. IN VIEW OF THE FOREGOING, OUR CAPTIONED CLIENT DOES NOT WISH TO PURSUE THE CAPTIONED APPEAL AND ARE DESIROUS OF WITHDRAWING TH E CAPTIONED APPEAL. WE REQUEST YOUR HONOUR TO KINDLY PERMIT US TO WITHD RAW THE CAPTIONED APPEAL. THAT BEING SO, AND IN THE ABSENCE OF ANY SUPPORTING MATERIAL PLACED ON RECORD BY THE LD. COUNSEL FOR THE ASSESSEE, WE DISMISS THE APPEAL FILED BY TH E ASSESSEE FOR NON-PROSECUTION. 4. IN THE RESULT, THE ASSESSEES APPEAL STANDS DISM ISSED BEING WITHDRAWN. ITA NO.6709/M/08 BIRLA TMT HOLDINGS P. LTD. 3 ORDER PRONOUNCED IN THE OPEN COURT ON THE 30TH DA Y OF NOVEMBER, 2011. SD/- SD/- (B. RAMAKOTAIAH) (D.K. AGARWAL) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI: 30TH NOVEMBER , 2011. NG: COPY TO : 1. DEPARTMENT. 2.ASSESSEE. 3 CIT(A)-XXVII,,MUMBAI. 4 CIT,CITY-3,MUMBAI. 5.DR,J BENCH,MUMBAI. 6.MASTER FILE. (TRUE COPY) BY ORDER, ASST.REGISTRAR , ITAT, MUMBAI. ITA NO.6709/M/08 BIRLA TMT HOLDINGS P. LTD. 4 DETAILS DATE INITIALS DESIGNATI ON 1. DRAFT DICTATED ON 30-11-2011 SR.PS/ 2. DRAFT PLACED BEFORE AUTHOR 30-11-2011 SR.PS/ 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER JM/A M 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS/ 6. KEPT FOR PRONOUNCEMENT ON SR.PS/ 7. FILE SENT TO THE BENCH CLERK SR.PS/ 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 9. DATE ON WHICH FILE GOES TO THE AR 10. DATE OF DISPATCH OF ORDER