KAVERI IMPEX P. LTD, MUMBAI V. ACIT 6(2), MUMBAI

ITA 7156/MUM/2010

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 71090 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 11 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-09-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 23-09-2013
• Assessment Year: 2007-2008
• Appeal Filed On: 18-10-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SU RENDRA KUMAR
• Assessee Lawyers: NITISH NIGAM
• Section: 14A

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, MUMBAI BEFORE S/SHRI B.R.MITTAL,(JM) AND SANJAY ARORA (AM) . . , , & ./I.T.A. NO.7156/MUM/2010 ( / ASSESSMENT YEARS:2007-08) KAVE RI IMPEX P.LTD., 115, CREATIVE INDUSTRIAL ESTATE, 72, N.M.JOSHI MARG, MUMBAI-400011 / VS. ASSTT. COMMISSIONER OF INCOME TAX 6(2), AYAKAR BHAVAN, M.K.ROAD, MUMBAI-400020 ./ ./PAN/GIR NO. : AAACK6332N ( / APPELLANT) .. ( / RESPONDENT) / APPELLANT BY : SHRI NITISH NIGAM /RESPONDENT BY : SHRI SURENDRA KUMAR ' / DATE OF HEARING : 23.9.2013 ' /DATE OF PRONOUNCEMENT : 23.9.2013 / O R D E R PER B.R.MITTAL, JM: THE ASSESSEE HAS FILED THIS APPEAL FOR ASSESSMENT YEAR 2007-08 AGAINST ORDER OF LD. CIT(A) OF CONFIRMING THE ACTION OF AO TO MAKE DISALLOWANCE OF RS.3,00,269/- U/S 14A OF THE INCOME TAX ACT, 1961 READ WITH RULE 8D OF T HE INCOME TAX RULES, 1962. 2. WE HAVE HEARD LD. REPRESENTATIVES OF THE PARTIES AND HAVE PERUSED THE ORDERS OF AUTHORITIES BELOW. WE OBSERVE THAT AO MADE DISALLO WANCE U/S 14A R.W.R.8D FOR CONSIDERING THE EXPENSES INCURRED IN RELATION TO I NCOME NOT INCLUDIBLE IN THE TOTAL INCOME FOR THE PURPOSE OF INCOME TAX. LD. CIT(A) A LSO CONFIRMED THE ACTION OF AO RELYING ON THE DECISION OF MUMBAI SPECIAL BENCH OF ITAT IN THE CASE OF M/S DAGA CAPITAL MANAGEMENT SERVICES PVT.LTD. (117 ITD 169) (SB). HOWEVER, THE HONBLE JURISDICTIONAL HIGH COURT HAS REVERSED THE DECISION OF SPECIAL BENCH (SUPRA) AND HAS I.T.A. NO.7156/MUM/2010 2 HELD IN THE CASE OF GODREJ & BOYCE MFG CO LTD VS DCIT (2010) 328 ITR 81 (BOM) THAT RULE 8D IS PROSPECTIVE IN NATURE AND APPLICABLE FRO M ASSESSMENT YEAR 2008-09 AND ONWARDS. THEREFORE, WE SET ASIDE THE ORDERS OF A UTHORITIES BELOW AND RESTORE THE MATTER TO THE AO FOR HIS FRESH CONSIDERATION FOR MA KING THE DISALLOWANCE, IF ANY, U/S 14A OF THE ACT. THEREFORE, GROUNDS OF APPEAL TAKEN BY ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES BY RESTORING THE ISSUE TO THE AO FOR HIS F RESH CONSIDERATION AS PER LAW. 3. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS A LLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF LD. REPRESENTATIVES OF BOTH THE PARTIES AND AFTER CONCLUSION OF HEARING O N 23RD SEPTEMBER, 2013 ' ) * 23RD SEPTEMBER, 2013 SD SD ( /SANJAY ARORA) ( . . 0 /B.R.MITTAL) / ACCOUNTANT MEMBER ' / JUDICIAL MEMBER MUMBAI; . . ./ SRL , SR. PS ) *+ ,+ / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. 1 ( ) / THE CIT(A)- 4. 1 / CIT 5. 2 4 , ' 4 , / DR, ITAT, MUMBAI 6. / GUARD FILE. / BY ORDER, TRUE COPY (ASSTT. REGISTRAR) , / ITAT, MUMBAI