ITO, Ward - 4(3), Kolkata, Kolkata V. M/s. Anamika Holding Pvt. Ltd., Kolkata

ITA 775/KOL/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 54469 (ITAT-KOLKATA)
• Duration Of Justice: 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-08-2011
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 19-05-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: A K PRAMANICK
• Section: 14A

Judgement Text

, , , , , , ,, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : KOLKATA [ . . . . . .. . , , !' !' !' !' , ] [BEFORE HONBLE SHRI S.V. MEHROTRA, AM & HONBLE SHRI MAHAVIR SINGH, JM '# '# '# '# / I.T.A NO. 775/KOL/2011 !$% &' !$% &' !$% &' !$% &'/ // / ASSESSMENT YEAR : 2007-08 INCOME TAX OFFICER/WARD-4(3) -VS.- M/S. ANAMIKA HOLDING PVT. LIMITED KOLKATA. KOLKATA. [PAN : AACCA 1700 G] [ )* )* )* )* /APPELLANT ] ]] ] [ ,-)* ,-)* ,-)* ,-)*/ // / RESPONDENT ] ]] ] )* )* )* )* / FOR THE APPELLANT : SHRI A. K. PRAMANICK ,-)* ,-)* ,-)* ,-)* / FOR THE RESPONDENT : SHRI SUBASH AGARWAL . /ORDER . . . . . .. . , PER S. V. MEHROTRA, A. M. THE ASSESSEE HAS PREFERRED THIS APPEAL FOR ASSESSM ENT YEAR 2007-08 AGAINST ORDER OF LD. CIT(A)-IV, KOLKATA DATED 06.10.2010. 2. THE ASSESSEE-COMPANY FILED ITS RETURN OF INCOME DECLARING TOTAL INCOME OF RS.5,76,700/-. ASSESSING OFFICER NOTICED THAT ASSESSEE-COMPANY HAD , INTER ALIA, EARNED DIVIDEND INCOME AMOUNTING TO RS.15,63,482/- WHICH WAS CLAIMED AS EX EMPT. ASSESSING OFFICER COMPUTED THE DISALLOWANCE UNDER SECTION 14A OF THE ACT READ WITH RULE 8D AND MADE TOTAL DISALLOWANCE UNDER SECTION 14A OF RS.36,32,775/-. LD. CIT(A) DIRECTED THE ASSESSING OFFICER TO RESTRICT THE DISALLOWANCE @ 1% OF THE DIVIDEND INCOME, INTER ALI A, OBSERVING THAT HONBLE MUMBAI HIGH COURT HAS HELD IN THE CASE OF GODREJ & BOYCE MFG. CO. LTD. VS. DCIT [2010] 328 ITR 81 (BOM.) THAT RULE 8D OF INCOME TAX RULES AS INSERTED BY THE INCOME TAX (5 TH AMENDMENT) RULES, 2008 IS APPLICABLE FROM ASSESSMENT YEAR 2008-09. [I TA NO. 775/KOL/2011] 2 3. HAVING HEARD BOTH THE PARTIES, WE FIND THAT ASSE SSING OFFICER HAS MADE THE DISALLOWANCE ONLY BY APPLYING RULE 8D AND HAS NOT EXAMINED THE A CCOUNTS OF THE ASSESSEE. WE, THEREFORE, SET ASIDE THE ORDER OF LD. CIT(A) AND RESTORE THE MATTE R BACK TO THE FILE OF ASSESSING OFFICER TO VERIFY THE ACCOUNTS AND DECIDE THIS ISSUE IN THE LIGHT OF PRINCIPLES LAID DOWN BY HONBLE MUMBAI HIGH COURT IN THE CASE OF GODREJ & BOYCE MFG. CO. LTD. VS. DCIT [2010] 328 ITR 81 (BOM.). 4. IN THE RESULT, APPEAL OF THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. . . . . / / / / 0 /$ 1 2 0 /$ 1 2 0 /$ 1 2 0 /$ 1 2 3 3 3 3 ORDER PRON OUNCED IN THE COURT ON 19.08.2011 SD/- SD/- [ !' !' !' !' , ] [ . .. . . .. . , ] [ MAHAVIR SINGH ] [ S.V. MEHROTRA ] JUDICIAL MEMBER ACCOUNTANT MEMBER ( (( (3 3 3 3) )) ) DATED : 19TH AUGUST, 2011. . 6 ,!!7 87&/ COPY OF THE ORDER FORWARDED TO: 1. )* /APPELLANT : INCOME TAX OFFICER/WARD-4(3), P-7, CH OWRINGHEE SQUARE, 8 TH FLOOR, KOLKATA-700 069. 2 ,-)* / RESPONDENT : M/S. ANAMIKA HOLDING PVT. LTD., 12, POLLOCK STREET, 2 ND FLOOR, KOLKATA-700 001 . 3. !.$ / CIT, 4. !.$ ()/ CIT(A), KOLKATA. 5. !1 ,!$/ DR, KOLKATA BENCHES, KOLKATA [-7 ,!/ TRUE COPY] .$// BY ORDER, '? /ASSTT REGISTRAR [KKC @A !$B? !C /SR.PS]