DCIT 3(2)(1), MUMBAI V. BHARATI S. KHANNA(THROUGH LEGAL REPRESENTATIVE SHRI SHARAN P. KHANNA), MUMBAI

ITA 7164/MUM/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 5370 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-10-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 19-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KAVITA P KAUSHIK
• Assessee Lawyers: R V SHAH; M A LIKA DEVENDRA
• Keywords: Tax effect; Rule 8D; Set aside; Capital Gains
• Section: 14A; 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH B , MUMBAI BEFORE SHRI C.N. PRASAD , HONBLE JUDICIAL MEMBER AND SHRI RAJESH KUMAR , HONBLE ACCOUNTANT MEMBER ITA NO . 7164 /MUM/201 7 ( A.Y: 201 3 - 14) D Y. COMMISSIONER OF INCOME TAX C I RCLE - 3( 2)( 1 ) R.NO. 608 , AAYAKAR BHAVAN M.K. ROAD, MUMBAI 400 020 V . SMT BHARATI S. KHANNA {THROUGH LEGAL REPRESENTATIVE SHRI SHARAN P. KHAN N A} 309, DALAMAL TOWER , PLOT NO . 211 FREE PRESS JOURNAL MARG NARIMAN POINT M UMBAI 400 021 PAN : AACPK5223B (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI R.V. SHAH & MS. M A LIKA DEVENDRA DEPARTMENT BY : MS. KAVITA P. KAUSHIK DATE OF HEARING : 16.10.2019 DATE OF PRONOUNCEMENT : 16.10.2019 O R D E R PER C.N. PRASAD (JM) THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) - 8 , MUMBAI [HEREINAFTER IN SHORT LD.CIT(A)] IN APPEAL NO. CIT(A) - 8 / IT - 156/16 - 17 DATED 04.09.2017 FOR THE ASSESSMENT YEAR 201 3 - 14 . 2 ITA NO . 7164 /MUM/201 7 ( A.Y: 201 3 - 14) SMT BHARATI S. KHANNA 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS IN ITS APPEAL : - 1. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD.CIT(A] WAS RIGHT IN D ELETING THE DISALLOWANCE OF RS. 11,83,271/ - MADE U/S 14A R.W.R. 8D WITHOUT APPRECIATING THE FACT THAT THE AMOUNT OF DISALLOWANCE U/S 14A OF THE I.T. ACT, 1961 HAS TO BE COMPUTED AS PER RULE 8D OF I.T. RULES, 1962 WHEN TH E COMPUTATION OF THE ASSESSEE WAS NOT FOUND TO BE CORRECT AND AS HELD IN THE ORDER OF THE HON'BLE HIGH COURT IN THE CASE OF M/S GODREJ & BOYCE MANUFACTURING CO. LTD. 2. WHETHER ON THE FACTS AND CIRCU MSTANCES OF THE CASE AND IN LAW, THE LD.CIT(A) WAS RIGHT IN DELETING THE ADDITION OF RS. 1,64,83,714/ - ON ACCOUNT OF LONG TERM CAPITAL GAINS ON SALE OF SHARES OF THE M/S SUSHAMA TRADING PVT. LTD. M/S MAHANADI SOFTWARE PVT. LTD. AND M/S. SHAMI REALTY PVT. L TD. ALONG WITH FLAT/UNIT IN THE NAME OF THE COMPANY. 3. THE APPELLANT PRAYS THAT FOR THIS AND OTHER REASONS IT IS SUBMITTED THAT THE ORDER OF THE CIT(A) ON THE GROUNDS BE SET ASIDE AND THAT OF THE ASSESSING OFFICER BE RESTORED . 3. AT THE TIME OF HEARING, LD. AUTHORIZED REPRESENTATIVE OF THE ASSESSEE SUBMITTED THAT TAX EFFECT ON THE ISSUE S IN THE PR ESENT APPEAL IS . 37,61,276/ - WHICH IS BELOW . 5 0 LAC S AND IN VIEW OF THE CBDT CIRCULAR N O . 17/2019 DATED 08.08.2019 IN F.NO.279/MISC.142/2007 - ITJ (PT) , THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE. 4. DEPARTMENTAL REPRESENTATIVE ALSO AGREED WITH THE ABOVE SUBMISSION OF THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE . 5. WE HAVE HEARD THE SUBMISSIONS AND PERUSED THE GROUNDS OF APPEAL IN THIS APPEAL. WE FIND THAT THE TAX EFFECT IN THIS APPEAL IS LESS THAN .5 0 LAKHS AND T HEREFORE THE APPEAL OF THE REVENU E IS NOT MAINTAINABLE 3 ITA NO . 7164 /MUM/201 7 ( A.Y: 201 3 - 14) SMT BHARATI S. KHANNA ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF THE CBDT CIRCULAR NO. 17/2019 DATED 08.08.2019. HENCE TH IS APPEAL IS DISMISSED. 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 16 TH OCTOBER, 2019 . SD/ - SD/ - ( RAJESH KUMAR ) (C.N. PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI / DATED 16/10/ 2019 GIRIDHAR, SR.PS COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY// BY ORDER, (ASSTT. REGISTRAR) ITAT, MUM