M/s. PRAKASH SNACKS P.LTD., Indore V. The JCIT R-5, Indore

ITA 743/IND/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 99123 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-12-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2011-2012
• Appeal Filed On: 26-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R A VERMA
• Keywords: Opportunity of being heard
• Section: 14A

Judgement Text

M/S PRAKASH SNACKS PVT. LTD ITA NO.743/IND/2014 1 IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI D.T. GARASIA, HONBLE JUDICIAL MEMBER AND SHRI B.C. MEENA, HONBLE ACCOUNTANT MEMBER ITA NO.743/IND/2014 A.Y. 2011-12 M/S PRAKASH SNACKS P. LTD INDORE ::: APPELLANT VS JT.COMMR. OF INCOME TAX RANGE 5 INDORE ::: RESPONDENT APPELLANT BY SHRI SATNAM SINGH SHEETAL RESPONDENT BY SHRI R.A. VERMA DATE OF HEARING 24.11.2015 DATE OF PRONOUNCEMENT 8 .12.2015 O R D E R PER SHRI B.C. MEENA, AM THIS APPEAL FILED BY THE ASSESSEE EMANATES FROM THE ORDER OF THE LEARNED CIT(A)-II, INDORE, DATED 28. 8.2014. 2. THE ONLY ISSUE INVOLVED IN THIS APPEAL IS AGAINST CONFIRMING THE ADDITION OF RS.6,33,434/- MADE BY THE M/S PRAKASH SNACKS PVT. LTD ITA NO.743/IND/2014 2 ASSESSING OFFICER BY INVOKING PROVISIONS OF SECTION 14A READ WITH RULE 8D OF THE IT RULES. 3. BEFORE US, THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE WAS IN REGULAR BUSINESS TRANSACTIONS OF SHARES AND THE TOTAL TRANSACTION WAS RS.3,60,469/-. THE ASSESSEE EARNED DIVIDEND OFRS. 875 2/- INCIDENTAL TO THE BUSINESS CARRIED OUT BY THE ASSESSEE IN SHARES, THEREFORE, THE PROVISIONS OF SECTION 14A RE AD WITH RULE 8D OF THE IT RULES ARE NOT APPLICABLE TO THE ASSE SSEE AND RELIANCE WAS PLACED ON THE DECISION OF THE ITAT, I NDORE BENCH, IN THE CASE OF NAI DUNIA; 17 ITD 289 AND NARENDRA NATH; 18 ITJ 383. 4. ON THE OTHER HAND, THE LEARNED DR RELIED UPON THE ORDERS OF THE AUTHORITIES BELOW AND SUBMITTED THAT THE ASSESSEE HAS FAILED TO PRODUCE ANY EVIDENCE REGARDING TH E CLAIM THAT IT WAS ENGAGED IN THE BUSINESS OF TRADING OF SHARES. FURTHER, THE ASSESSEE HAS ALSO FAILED TO FILE EV IDENCE M/S PRAKASH SNACKS PVT. LTD ITA NO.743/IND/2014 3 THAT THE FUNDS ON WHICH INTEREST WAS PAID WERE NOT USE D FOR ACQUISITION OF SHARES IN THE FORM OF INVESTMENTS AND HE SUBMITTED THAT THE CASE LAWS RELIED UPON ARE NOT APPLIC ABLE TO THE ASSESSEES CASE. 5. AFTER HEARING BOTH THE SIDES AND CONSIDERING THE VARIOUS ASPECTS OF THE CASE, WE RESTORE THE ISSUE TO THE FILE OF THE ASSESSING OFFICER TO DECIDE THE SAME DE NOVO IN VIEW OF THE VARIOUS DECISIONS OF THE HON'BLE HIGH COURT, AFTER PROVIDING THE ASSESSEE ADEQUATE OPPORTUNITY OF BEING HEARD. 6. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN OPEN COURT ON 8 TH DECEMBER, 2015 SD/- SD/- (D.T. GARASIA) (B.C. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER M/S PRAKASH SNACKS PVT. LTD ITA NO.743/IND/2014 4 8 TH DECEMBER, 2015 DN/-