ASIAN HOSPITALS & HEALTHCARE PVT LTD., MUMBAI V. ITO WARD WARD 5(1)(1), MUMBAI

ITA 734/MUM/2020

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 4974 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 7 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-09-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 30-01-2020
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: BRAJENDRA KUMAR LD
• Assessee Lawyers: NISHITH KHATRI LD
• Keywords: Earning of tax free income; Rule 8D
• Section: 143(3); 14A; 13

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, MUMBAI , , BEFORE HONBLE SHRI VIKAS AWASTHY, JM AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM (HEARING THROUGH VIDEO CONFERENCING MODE) ./ I.T.A. NO. 734 /MUM/20 20 ( / ASSESSMENT YEAR : 2012 - 13 ) ASIAN HOSPITALS & HEALTHCARE PVT. LTD. 302, DOCTOR HOUSE, 14, PEDDAR ROAD MUMBAI - 400 026 / VS. ITO WARD 5 (1)(1) R. NO. 570, 5 TH FLOOR, AAYKAR BHAVAN M. K. ROAD, M UMBAI - 20 ./ ./ PAN/GIR NO . A A FCA - 5335 - E ( / APPELLANT ) : ( / RESPONDENT ) ASSESSEE BY : SHRI NISHITH KHATRI LD. AR REVENUE BY : SHRI BRAJENDRA KUMAR LD. DR / DATE OF HEARING : 28 /09 /2021 / DATE OF PRONOUNCEMENT : 28/09/2021 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. THE ONLY GRIEVANCE OF THE ASSESSEE IN CAPTIONED APPEAL FOR ASSESSMENT YEAR (AY) 2012 - 13 IS DISALLOWANCE 14A FOR RS.1.45 LACS. HAVING HEARD RIVAL SUBMISSIONS AND AFTER CAREFUL CONSIDERATION OF MATERIAL ON RECORD, OUR ADJUDICATION TO THE SUBJECT MATTER OF APPEAL WOULD BE AS GIVEN IN SUCCEEDING PARAGRAPHS. 2. THE MATERIAL FACTS ARE THAT THE ASSESS EE BEING RESIDENT CORPORATE ASSESSEE WAS ASSESSED U /S 143(3) ON 24 /03/ 2015 WHEREIN IT TRANSPIRED 2 THAT THE ASSESSEE EARNED EXEMPT DIVIDEND INCOME OF RS.4,080/ - BU T IT NOT OFFER ANY DISALLOWANCE U/S 14A. THE SAME WAS ON THE REASONING THAT NO EXPENDITURE WAS INCURRED FOR THE PURPOSE OF EARNING EXEMPT INCOME. HOWEVER, APPLYING RULE 8D(2)(III), LD. AO COMPUTED INDIRECT EXPENSES DISALLOWANCE OF RS.1.45 LACS. 3 . DURING APPE LLATE PROCEEDINGS, THE ASSESSEE SUBMITTED THAT DISALLOWANCE U/S 14A COULD NOT EXCEED THE E XEMPT INCOME EARNED BY THE ASSESSEE. HOWEVER, REJECTING THE SAME, LD. CIT(A) CONFIRMED THE ADDITION. AGGRIEVED, THE ASSESSEE IS IN FURTHER APPEAL BEFORE US. 4. WE ARE OF THE CONSIDERED OPINION THAT AS PER SETTLED POSITION OF LAW, THE DISALLOWANCE U/S 14A C OULD NOT EXCEED THE EXEMPT INCOME EARNED BY THE ASSESSEE. THEREFORE, WE DIRECT LD. AO TO RESTRICT THE DISALLOWANCE TO RS.4,080/ - . THE BALANCE DISALLOWANCE STAND DELETED. 5. THE APPEAL STAND PARTLY ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 28 TH SEP TEMB ER, 2021. SD/ - SD/ - ( VIKAS AWASTHY ) (MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 28 /09 /2021 SR.PS, DHANANJAY / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ( ) / THE CIT(A) 4. / CIT CONCERNED 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE 3 / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MU MBAI.