FRIGERIO CONSERVA ALLANA LTD, MUMBAI V. ADDL CIT RG 1(1), MUMBAI

ITA 7060/MUM/2011

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 8814 (ITAT-MUMBAI)
• Duration Of Justice: 11 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-09-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2007-2008
• Appeal Filed On: 18-10-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K K MAHAJAN
• Section: 14A

Judgement Text

ITA NO.7060 OF 2011 FRIGERIO CONSERVA ALLANA LTD MU MBAI PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL 'F' BENCH, MUMBAI BEFORE SHRI I.P. BANSAL, JUDICIAL MEMBER AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER ITA NO.7060/MUM/2011 (ASSESSMENT YEAR: 2007-08) FRIGERIO CONSERVA ALLANA LTD ALLANA HOUSE, JA ALLANA MARG, COLABA, MUMBAI 400001 PAN: AAACF 0522 B VS. ADDL. CIT, RANGE 1(1), AAYAKAR BHAVAN, M.K. ROAD, MUMBAI 400020 (APPELLANT) (RESPONDENT) ASSESSEE BY: SHRI APURVA SHAH DEPARTMENT BY: SHRI K.K. MAHAJAN, DR DATE OF HEARING: 20/09/2012 DATE OF PRONOUNCEMENT: 26/09/2012 O R D E R PER B. RAMAKOTAIAH, A.M. THIS IS AN APPEAL BY ASSESSEE AGAINST THE ORDER OF THE CIT(A)1, MUMBAI, DATED 13.07.2011. THE ISSUE IN THE PRESENT APPEAL IS WITH REFERENCE TO THE DISALLOWANCE UNDER SECTION 14A. 2. ASSESSEE HAS INVESTED AN AMOUNT OF ` .18,54,18,155/- AS SHOWN IN THE BALANCE SHEET, WHICH HAS EARNED A DIVI DEND OF ` .54,750/- DURING THE YEAR, CLAIMED EXEMPT. AO INVOK ING THE PROVISIONS OF SECTION 14A AND RULE 8D DISALLOWED AN AMOUNT OF ` .561/- BEING THE DIRECT EXPENSES AND 0.05% OF AVERA GE INVESTMENTS AMOUNTING TO ` .9,27,091/-. IT WAS SUBMITTED BEFORE THE CIT (A) T HAT RULE 8D IS NOT APPLICABLE FOR THE IMPUGNED ASSESSME NT YEAR AND RELIED ON THE BOMBAY HIGH COURT JUDGMENT IN THE CAS E OF GODREJ & BOYCE MFG. CO. LTD, 328 ITR 81 (BOM.). ASSESSEE FUR THER SUBMITTED THAT A REASONABLE DISALLOWANCE BEING 5% OF THE EXEM PT INCOME MAY BE DISALLOWED OR IN THE ALTERNATE, PROPORTIONATE EX PENDITURE IN PROPORTION TO THE INCOME SHOULD BE DISALLOWED. THE CIT (A) HOWEVER, WHILE ACCEPTING THAT APPLICATION OF RULE 8D IS NOT RETROSPECTIVE, CONFIRMED THE ACTION OF AO ON THE REASON THAT THE D ISALLOWANCE OF ITA NO.7060 OF 2011 FRIGERIO CONSERVA ALLANA LTD MU MBAI PAGE 2 OF 2 0.05% OF THE TOTAL INVESTMENTS IS REASONABLE DISALL OWANCE. THEREFORE, ASSESSEE IS AGGRIEVED. 3. IT WAS SUBMITTED THAT THE ISSUE HAS TO BE RE-EXAMIN ED AS THE CIT (A) HAS NOT CONSIDERED THE FACTS. ASSESSEE COUN SEL HAS NO OBJECTION, IF THE MATTER IS REMITTED TO AO FOR FRES H CONSIDERATION. 4. IN ITA NO.6870/MUM/2011 FOR THE ASSESSMENT YEAR 200 8-09, WE HAVE ALREADY RESTORED THE MATTER ON THE ISSUE OF SECTION 14A TO THE FILE OF AO FOR FRESH CONSIDERATION AS DETAILED SUBMISSIONS MADE BEFORE THE CIT (A) WERE NOT CONSIDERED AND REQUIRED EXAMINATION ON FACTS AND ON LAW. KEEPING IN MIND THE ORDER FOR ASS ESSMENT YEAR 2008-09, WE IN THIS YEAR ALSO RESTORE THE MATTER TO THE FILE OF AO FOR FRESH ADJUDICATION AFTER CONSIDERING THE FACTS OF T HE CASE AND LAW ON THE SUBJECT. THE GROUND IS ACCORDINGLY CONSIDERED A LLOWED. 5. IN THE RESULT, APPEAL IS ALLOWED FOR STATISTICAL PU RPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 26 TH SEPTEMBER, 2012. SD/- SD/- ( I.P. BANSAL ) (B. RAMAKOTAIAH) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DATED 26 TH SEPTEMBER, 2012. VNODAN/SPS COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CONCERNED CIT(A) 4. THE CONCERNED CIT 5. THE DR, F BENCH, ITAT, MUMBAI BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCHES, MUMBAI