BARODA INDUSTRIES PVT.LTD., MUMBAI V. THE INCOME TAX OFFICER,WARD-3(1)(2), MUMBAI

ITA 6721/MUM/2008

• Counselvise Citation: [2010] 119 COUNSELVISE.COM (IT) 6105 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-12-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 30-11-2010
• Assessment Year: 2004-2005
• Appeal Filed On: 21-11-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: HARIGOVIND SINGH
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI B BENCH BEFORE SHRI N.V.VASUDEVAN, JUDICIAL MEMBER & SHRI T.R.SOOD, ACCOUNTANT MEMBER I.T.A.NO.6721/MUM/2008 A.Y 2004-05 BARODA INDUSTRIES PVT. LTD., BAJAJ BHAVAN, 2 ND FLOOR, JAMNALAL BAJAJ MARG, 226, NARIMAN POINT, MUMBAI 400 021. PAN: AAACB 2428 A VS. THE INCOME TAX OFFICER, WARD 3(1)(2), MUMBAI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI PRASHANT SHAH. RESPONDENT BY : SHRI HARI GOVIND SINGH. O R D E R PER T.R.SOOD, AM: IN THIS APPEAL, THE ASSESSEE HAS RAISED THE FOLLOW ING GROUNDS: 1.1 ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LEARNED COMMISSIONER OF INCOME TAX [APPEALS] [(CIT[ A]) ERRED IN CONFIRMING THE DISALLOWANCE MADE BY THE ASSESSING O FFICER FOR A SUM OF ` `` ` .75,818 BY INVOKING THE PROVISIONS OF SECTION 14A O F THE ACT. 1.2 ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LEARNED CIT[A] ERRED IN CONFIRMING THE DISALLOWANCE OF EXPENDITURE MADE BY THE LEARNED ASSESSING OFFICER ON PROPORTIONATE BASIS WITHOUT APPRECIATING THE SUBMIS SIONS OF THE APPELLANT. IT IS SUBMITTED THAT THE DISALLOWANCE MA DE IS NEITHER JUSTIFIED NOR REASONABLE. 2. AFTER HEARING BOTH THE PARTIES, WE FIND THAT DUR ING ASSESSMENT PROCEEDINGS IT WAS NOTICED THAT THE ASSESSEES INCO ME INCLUDED SOME DIVIDEND INCOME WHICH WAS CLAIMED EXEMPT U/S.10(34) . BECAUSE OF THIS, AO INVOKED THE PROVISIONS OF SECTION 14A AND DISALLOWED SOME OF THE EXPENDITURE BY APPLYING THE FOLLOWING FORMULA 2 THE EXPENDITURE OF ` `` ` .1,35,960/- IS BEING APPORTIONED AS UNDER:- EXEMPTED INCOME X EXPENDITURE 1,13,44,955 X 1,35,960 TOTAL INCOME 2,03,44,212 = ` `` ` /85.919 3. ON APPEAL, THE ADDITION HAS BEEN CONFIRMED BY TH E LD. CIT[A]. 4. BOTH THE PARTIES WERE HEARD. 5. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND AS A GREED BY BOTH THE PARTIES THAT THE ISSUE SHOULD BE REMANDED TO TH E FILE OF THE AO TO BE DECIDED IN THE LIGHT OF THE DECISION OF THE HON' BLE BOMBAY HIGH COURT IN THE CASE OF GODREJ & BOYCE MFG. CO. LTD. V S. DCIT [43 DTR 171]. THEREFORE, IN THE INTERESTS OF JUSTICE, WE SE T ASIDE THE ORDER OF THE LD. CIT[A] AND REMIT THE MATTER BACK TO THE FIL E OF THE AO TO DECIDE THE ISSUE IN THE LIGHT OF THE DECISION OF THE HON'B LE HIGH COURT IN THE CASE OF GODREJ & BOYCE MFG. CO.LTD. VS. DCIT [SUPRA ]. 6. IN THE RESULT, APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 3 RD DAY OF DECEMBER, 2010. SD/- SD/- (N.V.VASUDEVAN) (T.R.SOOD) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI: 3 RD DECEMBER, 2010. P/-* 3