JEEWAN LTD, MUMBAI V. DCIT 3(2), MUMBAI

ITA 7815/MUM/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 75702 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-03-2014
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: J
• Assessment Year: 2009-2010
• Appeal Filed On: 31-12-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: PARTH ACHWAL
• Keywords: Earning of tax free income
• Section: 14A

Judgement Text

JEEWAN LIMITED 1 IN THE INCOME TAX APPELLATE TRIBUNAL J BENCH, MUM BAI BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI NARENDRA KUMAR BILLAIYA, ACCOUNTANT MEMBER ITA NO. 7815/MUM/2012 ASSESSMENT YEAR.2009-10 JEEWAN LIMITED BAJAJ BHAVAN, 226, NARIMAN POINT, MUMBAI 400021. VS. THE DEPUTY COMMISSIONER OF INCOME TAX -3(2), ROOM NO. 608, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI 400020. PAN: AAACJ1656Q APPELLANT RESPONDENT ASSESSEE BY SHRI PARTH ACHWAL REVENUE BY SHRI MAURYA PRATAP ORDER PER VIJAY PAL RAO, JM THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 10.10.2012 OF CIT(A) FOR A.Y. 2009-10. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS IN THIS APPEAL:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE COMMISSIONER OF INCOME- TAX (APPEALS) ERRED IN UPHO LDING THE ACTION OF THE ASSESSING OFFICER IN DISALLOWING AN AMOUNT OF RS. 1 ,03,50,716/- UNDER SECTION 14A OF THE INCOME-TAX ACT, 1961 ('THE ACT') IN RESPECT OF EXPENSES INCURRED FOR EARNING EXEMPT INCOME. DATE OF HEARING 13.3.2014 DATE OF PRONOUNCEMENT 13 -03-2014 JEEWAN LIMITED 2 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE COMMISSIONER OF INCOME- TAX (APPEALS) ERRED IN UPHO LDING THE ACTION OF THE ASSESSING OFFICER IN INVOKING THE PROVISIONS OF RUL E 80 OF THE INCOME-TAX RULES, 1962 ('THE RULES') FOR COMPUTING THE AFORESA ID DISALLOWANCE UNDER SECTION 14A OF THE ACT. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE COMMISSIONER OF INCOME- TAX (APPEALS) ERRED IN REJE CTING THE CONTENTION OF THE APPELLANT THAT EVEN IF DISALLOWANCE IS TO BE MA DE AS PER RULE 80 OF THE RULES, THE DEBIT BALANCE OF THE PROFIT AND LOSS ACC OUNT OUGHT TO BE INCLUDED WHILE COMPUTING THE AVERAGE VALUE OF THE TOTAL ASSE TS FOR THE PURPOSE OF COMPUTING DISALLOWANCE UNDER SECTION 14A OF THE ACT. 4. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE COMMISSIONER OF INCOME- TAX (APPEALS) ERRED IN IGNO RING THE CONTENTION OF THE APPELLANT THAT EVEN IF DISALLOWANCE IS TO BE MA DE AS PER RULE 80 OF THE RULES, THE SAME OUGHT TO BE COMPUTED ONLY ON THOSE INVESTMENTS WHICH HAVE YIELDED EXEMPT INCOME DURING THE RELEVANT PREV IOUS YEAR. 5. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE APPELLANT PRAYS THAT EVEN IF DISALLOWANCE IS TO BE MADE AS PE R RULE 80 OF THE RULES, THE SAME OUGHT NOT TO BE COMPUTED ON THOSE INVESTME NTS WHICH ARE CAPABLE OF EARNING TAXABLE INCOME. 6. WITHOUT PREJUDICE TO THE ABOVE GROUNDS OF APPEAL, A ND IN THE ALTERNATIVE, THE COMMISSIONER OF INCOME-TAX (APPEALS) ERRED IN R EJECTING THE CONTENTION OF THE APPELLANT THAT THE VALUE OF LAND AMOUNTING T O RS. 27,931 OUGHT TO BE EXCLUDED FROM THE OPENING VALUE OF INVESTMENTS YIEL DING EXEMPT INCOME WHILE COMPUTING THE AVERAGE VALUE OF INVESTMENTS FO R THE PURPOSE OF COMPUTATION OF DISALLOWANCE AS PER RULE 80 OF THE RULES. 2. THE ASSESSEE HAS FILED A LETTER DATED 13.03.2014 AND URGED THAT THE ASSESSEE DOES NOT WISH TO PRESS THE PRESENT APPEAL. LD. AR OF THE ASSESSEE HAS SUBMITTED THAT THE APPEAL OF THE ASSESSEE MAY B E DISMISSED AS WITHDRAWAN AS THE ASSESSEE DOES NOT WANT TO PURSUE THE PRESENT APPEAL. 3. THE LD. DR HAS NO OBJECTION IF THE APPEAL OF THE ASSESSEE IS DISMISSED AS WITHDRAWN. JEEWAN LIMITED 3 4. ACCORDINGLY KEEPING IN VIEW THE ABOVE FACTS, WE DISMISS THE APPEAL OF THE ASSESSEE AS WITHDRAWN. 5. IN THE RESULT APPEAL OF THE ASSESSEE IS DISMISSE D AS WITHDRAWN. ORDER PRONOUNCED IN THE OPEN COURT ON 13 /03/2 014 SD/- SD/- (N.K. BILLAIYA) (VIJAY PAL RAO) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI DATED 13/03/2014 SKS SR. P.S COPY TO: THE APPELLANT THE RESPONDENT THE CONCERNED CIT(A) THE CONCERNED CIT THE DR, J BENCH, ITAT, MUMBAI BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCHES, MUMBAI