Ritz Credit Promotion Pvt. Ltd.(Since amalgamated with Sattva Developers Pvt. Ltd.), Kolkata V. DCIT, C ircle- 10, Kolkata, Kolkata

ITA 799/KOL/2010

• Counselvise Citation: 79923514 RSA 2010
• Duration Of Justice: 1 year(s) 6 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-11-2011
• Appeal Filed By: Assessee
• Bench Allotted: A
• Next Hearing Date: 28-06-2011
• Assessment Year: 2007-2008
• Appeal Filed On: 22-04-2010
• Court: TRIBUNAL
• Department Lawyers: S K ROY
• Assessee Lawyers: SUBASH AGARWAL
• Section: 14A

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL, BEN CH A, KOLKATA () BEFORE , ,, , , SHRI MAHAVIR SINGH, JUDICIAL MEMBER. /AND . .. . ! ! ! !. .. . , '# SHRI C.D.RAO, ACCOUNTANT MEMBER $ $ $ $ / ITA NO . 799/KOL/2010 %& '(/ ASSESSMENT YEAR : 2007-08 (*+ / APPELLANT ) RITZ CREDIT PROMOTION (P) LTD., KOLKATA (PAN : AABCR 3521 K) - % - - VERSUS - . (-.*+/ RESPONDENT ) D.C.I.T., CIRCLE-10, KOLKATA *+ / 0 '/ FOR THE APPELLANT: SHRI SUBASH AGARWAL -.*+ / 0 '/ FOR THE RESPONDENT: SHRI S.K.ROY 1%2 / !# /DATE OF HEARING : 01.11.2011. 3' / !# /DATE OF PRONOUNCEMENT : 01.11.2011 '4 / ORDER ( (( ( . .. . ! ! ! !. .. . ) )) ), , , , '# PER SHRI C.D.RAO, AM THIS APPEAL IS FILED BY ASSESSEE AGAINST THE ORDER DATED 27.01.2010 OF THE LD. CIT(A)-XII, KOLKATA PERTAINING TO A.YR.2007-08. 2. THE ONLY ISSUE RAISED BY ASSESSEE IS RELATING TO DISALLOWANCE OF RS.6,21,932/- U/S 14A OF THE IT ACT. 3. THE BRIEF FACTS OF THE CASE ARE THAT ASSESSING OFFICER HAS DISALLOWED AN AMOUNT OF RS.6,21,932/- BY APPLYING RULE 8D OF IT RULES AN D PROVISION OF SECTION 14A OF THE IT ACT. 3.1. ON APPEAL LD. CIT(A) HAS UPHELD THE ACTION OF ASSESSING OFFICER. 3.2. AGGRIEVED BY THIS ASSESSEE IS IN APPEAL BEFOR E US. 4. THE LD.COUNSEL APPEARING ON BEHALF OF ASSESSEE HAS SUBMITTED THAT AS PER THE DECISION OF THE HONBLE BOMBAY HIGH COURT IN THE CA SE OF GODREJ AND BOYCE MFG. CO. LTD. VS DCIT 328 ITR 81 (BOM) RULE 8D IS NOT AP PLICABLE FOR THE ASSESSMENT 2 YEAR INVOLVED IN THIS APPEAL. THEREFORE, HE REQUEST ED TO SET ASIDE THE MATTER TO THE FILE OF THE AO TO RECONSIDER THE ISSUE BASED ON THE FACT S AND CIRCUMSTANCES OF THE CASE. 5. ON THE OTHER HAND, THE LD. DR APPEARING ON B EHALF OF THE REVENUE RELIED ON THE ORDERS OF THE REVENUE AUTHORITIES. 6. AFTER HEARING THE RIVAL SUBMISSIONS AND ON CA REFUL PERUSAL OF THE MATERIALS AVAILABLE ON RECORD KEEPING IN VIEW OF THE FACT THA T AS PER THE DECISION OF THE HONBLE BOMBAY HIGH COURT IN THE CASE OF GODREJ AND BOYCE M FG. PVT. LTD. (SUPRA) RELIED UPON BY THE LD. COUNSEL FOR THE ASSESSEE, RULE 8D I S NOT APPLICABLE IN THE ASSESSMENT YEAR UNDER CONSIDERATION. THE DECISION OF THE HONB LE ITAT (SPL.BENCH) MUMBAI IN THE CASE OF M/S. DAGA CAPITAL LTD. AS RELIED BY THE REVENUE AUTHORITIES IS ALSO NOT APPLICABLE TO THE FACTS OF THE PRESENT CASE. THE HO NBLE TRIBUNAL HAS BEEN TAKING A CONSISTENT VIEW OF SUSTAINING THE DISALLOWANCE U/S 14A AT 1% OF THE DIVIDEND INCOME. ACCORDINGLY WE DIRECT THE AO TO DISALLOW 1% OF THE DIVIDEND INCOME AS EXPENDITURE RELEVANT TO EARNING OF DIVIDEND INCOME. WE ORDER AC CORDINGLY. 7. IN THE RESULT THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 01.11.2011. SD/- SD/- , , , , MAHAVIR SINGH, JUDICIAL MEMBER . .. . ! ! ! !. .. . , , , , '# '# '# '# , C.D.RAO, ACCOUNTANT MEMBER. ( (( (!# !# !# !#) )) ) DATE: 01.11.2011. '4 / -5 6'5'7- COPY OF THE ORDER FORWARDED TO: 1. RITZ CREDIT PROMOTION PRIVATE LTD., 41, NETAJI SUBH AS ROAD, (4 TH FLOOR, ROOM NO.404), KOLKATA-700001. 2 THE D.C.I.T.,CIRCLE-10, KOLKATA. 3. THE CIT, 4. THE CIT(A)-XII, KOLKATA. 5. DR, KOLKATA BENCHES, KOLKATA .5 -/ TRUE COPY, '4%1/ BY ORDER, DEPUTY /ASST. REGISTRAR , ITAT, KOLKATA BENCHES R.G.(.P.S.) 3