M/s Agnus Holdings Pvt Ltd , Bangalore V. The Deputy Commissioner of Income Tax Circle-1(1)(1), Bangalore

ITA 675/BANG/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 6930 (ITAT-BANGALORE)
• Duration Of Justice: 2 year(s) 1 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 30-04-2019
• Assessment Year: 2012-2013
• Appeal Filed On: 24-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIMAL ANAND
• Keywords: Opportunity of being heard; Revised return; Set aside
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI B.R BASKARAN, ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO.675/BANG/2017 ASSESSMENT YEAR : 2012-13 M/S AGNUS HOLDINGS PVT. LTD., STAR-2, OPP IIM BANGALORE, BANNERGHATTA ROAD, BILEKAHALLI, BENGALURU-560 076. PAN AAHCS 6660 A. VS. THE DY. COMMISSIONER OF INCOME-TAX, CIRCLE-1(1)(1), BENGALURU. APPELL ANT RESPONDENT ASSESSEE BY : SMT. SHEETAL BORKAR, ADVOCATE REVENUE BY : SHRI VIMAL ANAND, ADDL CIT DATE OF HEARING : 02.05.2019 DATE OF PRONOUNCEMENT : 02.05.2019 O R D E R PER B.R BASKARAN, ACCOUNTANT MEMBER : THE APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINS T THE ORDER DATED 19-01-2017 PASSED BY LD CIT(A)-1, BANGALORE A ND IT RELATES TO THE ASSESSMENT YEAR 2012-13. THE ASSESSEE IS AG GRIEVED BY THE DECISION OF LD CIT(A) IN REJECTING THE GROUND RAISE D BY THE ASSESSEE IN RESPECT OF DISALLOWANCE MADE U/S 14A OF THE ACT. ITA NO.675/BANG/2017 PAGE 2 OF 5 2. WE HEARD THE PARTIES AND PERUSED THE RECORD. THE ASSESSEE, INITIALLY, DISALLOWED A SUM OF RS.1,92,86,469/- U/S 14A OF THE ACT. LATER, IT WAS NOTICED BY THE ASSESSEE THAT THE ABOV E SAID DISALLOWANCE WAS COMPUTED ERRONEOUSLY BY CONSIDERIN G CERTAIN ITEMS OF INVESTMENTS, WHICH SHOULD NOT BE CONSIDERE D FOR COMPUTING AVERAGE VALUE OF INVESTMENTS. SOME OF TH E ITEMS MENTIONED IN THE ORDER OF LD CIT(A) WERE CONVERTIBL E DEBENTURES, SHARE APPLICATION MONEY AND NATIONAL SAVINGS CERTIF ICATE. HENCE THE ASSESSEE RE-COMPUTED THE DISALLOWANCE U/S 14A A T RS.1,18,27,082/- AND REQUESTED THE AO TO ADOPT THE SAME BY FILING A LETTER BEFORE THE AO. HOWEVER, THE ASSESSING OFF ICER DID NOT CONSIDER THE SAID LETTER. THE LD CIT(A) CONFIRMED THE ORDER OF THE AO BY OBSERVING THAT THE ASSESSEE ITSELF HAS WORKED OUT THE DISALLOWANCE AT RS.192.86 LAKHS. AGGRIEVED, THE AS SESSEE HAS FILED THIS APPEAL. 3. WE NOTICE THAT THE ASSESSEE HAS NOTICED TH E ERRORS BEFORE THE COMPLETION OF ASSESSMENT PROCEEDING AND HENCE IT HA S FURNISHED REVISED COMPUTATION OF DISALLOWANCE U/S 14A THROUGH A LETTER. HOWEVER, THE AO DID NOT CONSIDER THE SAME. NORMALL Y THE MISTAKES COMMITTED IN FILING RETURN OF INCOME ARE TO BE CORR ECTED ONLY BY FILING REVISED RETURN OF INCOME AS HELD BY HONBLE SUPREME COURT IN THE CASE OF GOETZ INDIA LTD (284 ITR 323). HOWEVER , THE HONBLE SUPREME COURT HAS ALSO HELD IN THE ABOVE SAID CASE, THAT ITS ORDER DOES NOT IMPINGE THE POWER OF THE TRIBUNAL. 4. WE NOTICE THAT THE MISTAKES/ERRORS POINTED OUT BY THE ASSESSEE ARE GENUINE ONE. IT IS WELL SETTLED PROPO SITION OF LAW THAT ITA NO.675/BANG/2017 PAGE 3 OF 5 THERE IS NO ESTOPPEL AGAINST LAW. HENCE, WE ARE OF THE VIEW THAT THE CLAIM OF THE ASSESSEE SHOULD BE ADMITTED. ACCORDIN GLY, WE ARE OF THE VIEW THAT THE LD CIT(A) WAS NOT JUSTIFIED IN RE JECTING THE PLEA OF THE ASSESSEE ON THE REASONING THAT THE ASSESSEE ITS ELF HAS DISALLOWED A SUM OF RS.192.86 LAKHS U/S 14A OF THE ACT. ACCORDINGLY, WE SET ASIDE THE ORDER PASSED BY LD CI T(A) ON THIS ISSUE AND DIRECT THE AO TO EXAMINE THE REVISED COMP UTATION FILED THE ASSESSEE FOR DISALLOWANCE TO BE MADE U/S 14A OF THE ACT. AFTER AFFORDING ADEQUATE OPPORTUNITY OF BEING HEARD TO TH E ASSESSEE, THE AO MAY TAKE APPROPRIATE DECISION. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSES SEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 2ND MAY, 2019. SD/ - (PAVAN KUMAR GADALE) JUDICIAL MEMBER SD/ - (B.R BASKARAN) ACCOUNTANT MEMBER BANGALORE, DATED, 2 ND MAY, 2019. / VMS / ITA NO.675/BANG/2017 PAGE 4 OF 5 COPY TO: 1. THE APPLICANT 2. THE RESPONDENT 3 . THE CIT 4. THE CIT(A) 5. THE DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER A SST. REGISTRAR, ITAT, BANGALORE. ITA NO.675/BANG/2017 PAGE 5 OF 5 1. DATE OF DICTATION 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER . 3. DATE ON WHICH THE APPROVED DRAFT COMES TO SR.P.S .. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER .. 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE S R. P.S. .. 6. DATE OF UPLOADING THE ORDER ON WEBSITE.. 7. IF NOT UPLOADED, FURNISH THE REASON FOR DOING SO .. 8. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK .. 9. DATE ON WHICH ORDER GOES FOR XEROX & ENDORSEMENT 10. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 11. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER . 12. THE DATE ON WHICH THE FILE GOES TO DISPATCH SEC TION FOR DISPATCH OF THE TRIBUNAL ORDER . 13. DATE OF DESPATCH OF ORDER. ..