DCIT CEN CIR 1 (1)(4), MUMBAI V. D.B. REALTY P.LTD, MUMBAI

ITA 7048/MUM/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 8448 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-02-2017
• Appeal Filed By: Department
• Bench Allotted: D
• Assessment Year: 2010-2011
• Appeal Filed On: 19-11-2014
• Court: TRIBUNAL
• Department Lawyers: PURSHOTTAM KUMAR
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, MUMBAI BEFORE SHRI B.R. BASKARAN (AM) & SANDEEP GOSAIN (JM) I.T.A. NO. 7048/MUM/2014 (ASSESSMENT YEAR 2010 - 11) I.T.A. NO. 4467 /MUM/20 15 (ASSESSMENT YEAR 20 11 - 12 ) DCIT CC - 1(4) /1(1)(4) ROOM NO. 902 9 TH FLO OR OLD CGO BUILDING M.K. ROAD MUMBAI - 400 020. VS. M/S. D.B. REALTY PVT. LTD. (NOW DB REALTY LTD.) D.B. HOUSE A.K. VAIDYA MARG GOREGAON EAST MUMBAI - 400 063. ( APPELLANT ) ( RESPONDENT ) I.T.A. NO. 4396/MUM/2015 (ASSESSMENT YEAR 2011 - 12) M/S. D.B. REALT Y PVT. LTD. (NOW DB REALTY LTD.) D.B. HOUSE A.K. VAIDYA MARG GOREGAON EAST MUMBAI - 400 063. VS. DCIT CC - 1(4) ERSTWHILE DCIT CC - 6 PRATISHTHA BHAVAN M.K. ROAD MUMBAI - 400 020. ( APPELLANT ) ( RESPONDENT ) PAN NO . AACCD5174F ASSESSEE BY S MT. AARTI VISSA NJI DEPARTMENT BY S HRI PURSHOTTAM KUMAR DATE OF HEARING 20 .2 . 201 7 DATE OF PRONOUNCEMENT 20 .2 . 201 7 O R D E R PER B.R. BASKARAN (AM) : - THE APPEAL FILED BY THE REVENUE FOR A.Y. 2010 - 11 AND CROSS APPEALS FILED BY THE PARTIES FOR A.Y. 2011 - 12 AR E DIRECTED AGAINST THE ORDER S PASSED BY THE LEARNED CIT(A) - 36, MUMBAI. M/S. D.B. REALTY PVT. LTD. (NOW DB REALTY LTD.) 2 2. AT THE TIME OF HEARING LEARNED COUNSEL APPEARING FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE IS NOT INTERESTED IN PURSUING THE APPEAL FILED BY THE ASSESSEE FOR A.Y. 2011 - 12. ACC ORDINGLY, THE SAID APPEAL IS DISMISSED AS WITHDRAWN. 3. SOLITARY ISSUE URGED IN THE APPEAL FILED BY THE REVENUE RELATES TO DISALLOWANCE MADE UNDER SECTION 14A OF THE ACT. THE ASSESSING OFFICER COMPUTED THE DISALLOWANCE IN BOTH THE YEARS U/R. 8D(2)(III) O F THE I.T. RULES AT 0.5% OF AVERAGE VALUE OF INVESTMENT. THE LEARNED CIT(A) NOTICED THAT THE ASSESSEE HAS MADE MAJOR PORTION OF INVESTMENT S ONLY IN SUBSIDIARY COMPANIES, ASSOCIATES CONCERNS AND PARTNERSHIP FIRMS, IN WHICH THE ASSESSEE IS A PARTNER. ACCORDI NGLY, THE LEARNED CIT(A) TOOK THE VIEW THAT INVESTMENTS MADE BY THE ASSESSEE ARE IN THE FORM OF STRATEGIC INVESTMENT S AND ACCORDINGLY DIRECTED THE ASSESSING OFFICER TO COMPUTE THE DISALLOWANCE AT 5% OF THE FIXED/SEMI VARIABLE EXPENDITURE INCURRED BY THE AS SESSEE. 4. AT THE TIME OF HEARING LEARNED COUNSEL SUBMITTED THAT THE ASSESSING OFFICER HAD MADE IDENTICAL DISALLOWANCE IN A.Y. 2009 - 10 ALSO, WHICH WAS REDUCED TO 5% OF THE FIXED/SEMI VARIABLE EXPENSES BY THE ORDER PASSED BY THE LEARNED CIT(A). HE SUBMITT ED THAT THE REVENUE TOOK THE MATTER TO THE TRIBUNAL AND THE TRIBUNAL , VIDE ITS ORDER DATED 19.11.2014 PASSED IN ITA NO. 6137/MUM/2012 RELATING TO A.Y. 2009 - 10 , HAS CONFIRMED THE ORDER PASSED BY THE LEARNED CIT(A) AND ACCORDINGLY DISMISSED THE APPEAL FILED BY THE REVENUE. LEARNED AR SUBMITTED THAT THE LEARNED CIT(A) HAS FOLLOWED ITS OWN ORDER PASSED IN A.Y. 2009 - 10 IN THE YEARS UNDER CONSIDERATION ALSO. 5. LEARNED DEPARTMENTAL REPRESENTATIVE DID NOT CONTROVERT THE FACTUAL ASPECTS PRESENTED BY LEARNED AR. 6. IN VIEW OF THE ABOVE, CONSISTENT WITH THE VIEW TAKEN BY THE COORDINATE BENCH OF THE TRIBUNAL IN A.Y. 2009 - 10, WE CONFIRM THE ORDER PASSED BY THE LEARNED CIT(A) IN THE YEARS UNDER CONSIDERATION ALSO. M/S. D.B. REALTY PVT. LTD. (NOW DB REALTY LTD.) 3 7. IN THE RESULT, APPEAL FILED BY THE ASSESSEE AND APPEALS FILED BY THE REVENUE ARE DISMISSED. ORDER HAS BE E N PRONOUNCED IN THE COURT ON 20 . 2 .201 7. SD/ - SD/ - (SANDEEP GOSAIN ) (B.R.BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED : 20 / 2 / 20 1 7 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// ( DY./ASSTT. REGISTRAR) PS ITAT, MUMBAI