NEERA EXPORTS P. LTD, MUMBAI V. ITO 3(2)(3), MUMBAI

ITA 7503/MUM/2010

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 84068 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-11-2014
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Next Hearing Date: 05-11-2014
• Assessment Year: 2006-2007
• Appeal Filed On: 02-11-2010
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: VIJAY KUMAR BORA
• Keywords: Earning of tax free income
• Section: 14A

Judgement Text

, , , , , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES B, MUMBAI .., . .!'#, $ , % BEFORE SHRI I.P.BANSAL, JM AND SHRI N.K.BILLAIYA, A M ITA NO.7503/MUM/2010 : ASST.YEAR 2006-07 NEERA ENGINEERING EXPORTS P. LTD. 17 TH FLOOR, C-WING, 210, MITTAL TOWER, NARIMAN POINT, MUMBAI 400021 PAN:AAACN 9987A THE ITO 3(2)(3), MUMBAI. ( &' / // / APPELLANT) / VS. ( )*&'/ RESPONDENT) &' + + + + , , , , /APPELLANT BY : NONE )*&' + , + , + , + , /RESPONDENT BY : SHRI VIJAY KUMAR BORA + -.$ / / / / DATE OF HEARING : 05.11.2014 /01 + -.$ / DATE OF PRONOUNCEMENT : 05.11.2014 2 2 2 2 / / / / O R D E R PER I.P.BANSAL (JM) : THIS IS AN APPEAL FILED BY THE ASSESSEE AND IT IS DIRECTED AGAINST ORDER PASSED BY LD. CIT(A)-7, MUMBAI DATED 04.08.2010 FOR ASSESSMENT YEAR 2006- 07. GROUNDS OF APPEAL READ AS UNDER: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN THE LAW, THE CIT(A) WHILE PASSING ORDER U/S 250 OF I.TAX ACT, 1961 DT.0 4/0812010 ERRED IN NOT DELETING THE ADDITION MADE BY AO U/S 14A TO TUNE OF RS,16,46,618/- 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN THE LAW, THE CIT (A), WHILE PASSING ORDER DT.04/08/2010 OF THE I. TAX ACT , 1961 ERRED IN NOT DELETING THE ADDITION MADE U/S 14A BY AO TO TUNE OF RS.16,46 ,618/-BEING AS EXPENSES DISALLOWANCE U/S 14A IN THE HANDS OF THE APPELLANT EVEN AFTER RULE 8D WHICH CAME INTO EFFECT FROM 24/03/2010 WHICH PRESCRIBED T HE METHOD OF DISALLOWANCE OF EXPENSES FOR EXEMPT INCOME WILL BE APPLICABLE PR OSPECTIVELY I.E. FROM A.Y.2008- 2009 AND NOT RETROSPECTIVELY. 2. LD. CIT(A) HAS UPHELD THE DISALLOWANCE MADE UNDE R SECTION 14A R.W. RULE 8D OF THE INCOME TAX ACT, 1961 (THE ACT) AMOUNTING TO RS.16,46,618/- ON THE BASIS OF DECISION OF SPECIAL BENCH IN THE CASE OF D AGA CAPITAL MANAGEMENT PVT. LTD., 26 SOT 603. ITA NO.7503/MUM/2010 : ASST.YEAR 2006-07 2 3. NOTICE OF HEARING WAS SENT TO THE ASSESSEE, HOWE VER, NONE WAS PRESENT ON BEHALF OF THE ASSESSEE ON THE FIXED DATE OF HEARIN G. ACCORDING TO THE DECISION OF HONBLE BOMBAY HIGH COURT IN THE CASE OF GODREJ & B OYCE MFG. CO. LTD., 328 ITR 81(BOM), RULE 8D IS NOT APPLICABLE TO THE ASSES SMENT YEARS PRIOR TO ASSESSMENT YEAR 2008-09. THEREFORE, THE DECISION RE NDERED BY LD. CIT(A) IS CONTRARY TO THE ABOVE DECISION OF HONBLE BOMBAY HI GH COURT AND WE SET ASIDE THE ORDER PASSED BY LD. CIT(A) AND RESTORE THE ISS UE OF DISALLOWANCE TO BE MADE UNDER SECTION 14A TO THE FILE OF AO WITH A DIR ECTION TO RE-ADJUDICATE THE ISSUE REGARDING DISALLOWANCE UNDER SECTION 14A IN A CCORDANCE WITH THE AFOREMENTIONED DECISION OF HONBLE BOMBAY HIGH COUR T IN THE CASE OF GODREJ & BOYCE MFG. CO. LTD.(SUPRA). WE DIRECT ACCORDINGLY. 4. IN THE RESULT, FOR STATISTICAL PURPOSES THE APPE AL FILED BY THE ASSESSEE IS CONSIDERED TO BE ALLOWED IN THE MANNER AFORESAID. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 5 TH NOV. 2014. 2 + /01 34 05/11/2014 0 + : SD/- SD/- (N.K.BILLAIYA) (I.P.BANSAL) $ $ $ $ / ACCOUNTANT MEMBER / JUDICIAL MEMBER MUMBAI; 3 DATED : 5 TH NOV. 2014. VM. 2 + )-! ; !1- 2 + )-! ; !1- 2 + )-! ; !1- 2 + )-! ; !1-/ COPY OF THE ORDER FORWARDED TO : 1. &' / THE APPELLANT 2. )*&' / THE RESPONDENT. 3. <() / THE CIT, MUMBAI. 4. < / CIT(A)- , MUMBAI 5. !?: )-, , / DR, ITAT, MUMBAI 6. :@ A / GUARD FILE. 2 2 2 2 / BY ORDER, *!- )- //TRUE COPY// B BB B/ // /C D C D C D C D (DY./ASSTT. REGISTRAR) , , , , / ITAT, MUMBAI