Britannia Industries Ltd., Kolkata V. DCIT, CIR-7(1), KOLKATA, Kolkata

ITA 780/KOL/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 4575 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 3 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-09-2016
• Appeal Filed By: Assessee
• Bench Allotted: D
• Assessment Year: 2008-2009
• Appeal Filed On: 01-06-2015
• Court: TRIBUNAL
• Department Lawyers: NIRAJ KUMAR
• Keywords: Earning of tax free income
• Section: 143(3); 14A; 263

Judgement Text

I.T.A. NO. 780/KOL./2015 ASSESSMENT YEAR: 2008-2009 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA D BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER AND SHRI N.V. VASUDEVAN, JUDICIAL MEMBER I.T.A. NO. 780/KOL/ 2015 ASSESSMENT YEAR: 2008-2009 BRITANNIA INDUSTRIES LIMITED,...................... ..............................APPELLANT 5/1A, HUNGERFORD STREET, KOLKATA-700 017 [PAN : AABCB 2066 P] -VS.- DEPUTY COMMISSIONER OF INCOME TAX,................. ......................RESPONDENT CIRCLE-7(1), KOLKATA, AAYAKAR BHAWAN, P-7, CHOWRINGHEE SQUARE, KOLKATA-700 069 APPEARANCES BY: MS. PRIYANKA SALARPURIA, FCA, FOR THE ASSESSEE SHRI NIRAJ KUMAR, CIT, D.R., FOR THE DEPARTMENT DATE OF CONCLUDING THE HEARING : AUGUST 08, 2016 DATE OF PRONOUNCING THE ORDER : SEPTEMBER 02, 2016 O R D E R PER SHRI P.M. JAGTAP :- THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS)-3, KOLKATA DATED 20.03.2015, WHEREBY HE SUSTAINED PARTLY THE DISALLOWANCE MADE B Y THE ASSESSING OFFICER UNDER SECTION 14A READ WITH RULE 8D VIDE AN ORDER PASSED UNDER SECTION 143(3) READ WITH SECTION 263 OF THE INCOME TAX ACT, 1961. 2. AT THE OUTSET, IT IS NOTED THAT THERE IS A DELAY OF 9 DAYS ON THE PART OF THE ASSESSEE IN FILING THIS APPEAL BEFORE THE TR IBUNAL. IN THIS REGARD, THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE-COMPA NY HAS MOVED AN APPLICATION SEEKING CONDONATION OF THE SAID DELAY A ND KEEPING IN VIEW THE I.T.A. NO. 780/KOL./2015 ASSESSMENT YEAR: 2008-2009 PAGE 2 OF 3 REASONS GIVEN THEREIN, WE ARE SATISFIED THAT THERE WAS A SUFFICIENT CAUSE FOR THE DELAY ON THE PART OF THE ASSESSEE IN FILING THIS APPEAL BEFORE THE TRIBUNAL. WE, THEREFORE, CONDONE THE SAID DELAY AND PROCEED TO DISPOSE OF THE APPEAL OF THE ASSESSEE ON MERIT. 3. THE ASSESSEE IN THE PRESENT CASE IS A COMPANY, W HICH IS ENGAGED IN THE BUSINESS OF MANUFACTURING AND SALE OF BISCUITS AND OTHER CONFECTIONARY. IN THE ASSESSMENT ORIGINALLY COMPLET ED FOR THE YEAR UNDER CONSIDERATION VIDE AN ORDER DATED 24.12.2010 PASSED UNDER SECTION 143(3), THE TOTAL INCOME OF THE ASSESSEE WAS DETERM INED BY THE ASSESSING OFFICER AT RS.98,84,67,140/-. ON EXAMINATION OF THE RECORDS OF THE SAID ASSESSMENT, THE LD. CIT FOUND THAT THE DISALLOWANCE OF EXPENSES IN RELATION TO THE EARNING OF EXEMPT INCOME AS REQUIRE D BY THE PROVISIONS OF SECTION 14A WAS NOT COMPUTED BY THE ASSESSING OFFIC ER BY APPLYING RULE 8D OF INCOME TAX RULES AND THE ASSESSMENT ORDER PAS SED UNDER SECTION 143(3) THUS WAS ERRONEOUS AS WELL AS PREJUDICIAL TO THE INTEREST OF THE REVENUE. HE, THEREFORE, REVISED THE SAID ORDER BY E XERCISING THE POWERS CONFERRED UPON HIM UNDER SECTION 263 WITH A DIRECTI ON TO THE ASSESSING OFFICER TO COMPUTE THE DISALLOWANCE TO BE MADE UNDE R SECTION 14A AS PER RULE 8D OF INCOME TAX RULES. AS PER THE DIRECTION O F THE LD. CIT, THE ASSESSING OFFICER PASSED A FRESH ASSESSMENT ORDER U NDER SECTION 143(3) READ WITH SECTION 263 ON 20.03.2014 MAKING A FURTHE R DISALLOWANCE OF RS.2,00,09,437/- UNDER SECTION 14A READ WITH RULE 8 D. AGAINST THE SAID ORDER OF THE ASSESSING OFFICER, AN APPEAL WAS PREFE RRED BY THE ASSESSEE BEFORE THE LD. CIT(APPEALS) AND AFTER CONSIDERING T HE SUBMISSIONS MADE BY THE ASSESSEE AS WELL AS THE MATERIAL AVAILABLE O N RECORD, THE LD. CIT(APPEALS) RESTRICTED THE DISALLOWANCE MADE BY TH E ASSESSING OFFICER UNDER SECTION 14A READ WITH RULE 8D TO RS.85,04,464 /-. STILL AGGRIEVED BY THE ORDER OF THE LD. CIT(APPEALS), THE ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL. 4. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. AS SUBMITTED BY THE LD. COUNSEL FOR I.T.A. NO. 780/KOL./2015 ASSESSMENT YEAR: 2008-2009 PAGE 3 OF 3 THE ASSESSEE, AN APPEAL WAS PREFERRED BY THE ASSESS EE BEFORE THE TRIBUNAL AGAINST THE ORDER PASSED BY THE CONCERNED LD. CIT U NDER SECTION 263 DIRECTING THE ASSESSING OFFICER TO MAKE A FURTHER D ISALLOWANCE UNDER SECTION 14A BY APPLYING RULE 8D AND THE TRIBUNAL VI DE ITS ORDER DATED 02.03.2016 PASSED IN ITA NO. 390/KOL/2013 HAS QUASH ED THE ORDER PASSED BY THE LD. CIT UNDER SECTION 263 THEREBY ALL OWING THE APPEAL OF THE ASSESSEE. CONSEQUENTLY THE ORDER PASSED BY THE ASSESSING OFFICER UNDER SECTION 143(3) READ WITH SECTION 263 MAKING A FURTHER DISALLOWANCE UNDER SECTION 14A HAS BECOME NON-EST IN THE EYES OF LAW AND THE IMPUGNED ORDER OF THE LD. CIT(APPEALS) UPHOLDIN G PARTLY THE SAID ORDER IS LIABLE TO BE CANCELLED. WE ORDER ACCORDING LY AND ALLOW THIS APPEAL OF THE ASSESSEE. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON SEPTEMBER 02, 2016. SD/- SD/- (N.V. VASUDEVAN) (P.M. JAGTAP) JUDICIAL MEMBER ACCOUNTANT MEMBER KOLKATA, THE 2 ND DAY OF SEPTEMBER, 2016 COPIES FORWARDED TO:- (1) BRITANNIA INDUSTRIES LIMITED, 5/1A, HUNGERFORD STREET, KOLKATA-700 017 (2) DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-7(1), KOLKATA, AAYAKAR BHAWAN, P-7, CHOWRINGHEE SQUARE, KOLKATA-700 069 (3) CIT(APPEALS)-3, KOLKATA, (4) CIT, KOLKATA- , KOLKATA (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.