FEDEX SECURITIES LTD., MUMBAI V. D.C.I.T. -3(1), MUMBAI

ITA 8678/MUM/2011

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 75277 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-01-2014
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 21-01-2014
• Assessment Year: 2008-2009
• Appeal Filed On: 22-12-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: O P SINGH
• Assessee Lawyers: KIRIT SETH
• Keywords: Earning of tax free income
• Section: 143(3); 14A; 2

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL F , BENCH MUMBAI , BEFORE : SHRI R.C.SHARMA , A M AND SHRI AMIT SHUKLA , J M I TA NO. 8678 / MUM/20 1 1 ( ASSESSMENT YEAR : 200 8 - 09 ) FEDEX SECURITIES LTD., 1205, DALAMAL TOWER, NARIMAN POINT, MUMBAI - 400 021 VS. DCIT - 3(1), MUMBAI - 20 PAN/GIR NO. : A A ACF 2216 J ( APPELLANT ) .. ( RESPONDENT ) AND ITA NO. 867 7 / MUM/20 11 ( ASSESSMENT YEAR :2008 - 09 ) FEDEX FINANCE LTD., 1205, DALAMAL TOWER, NARIMAN POINT, MUMBAI - 400 021 VS. DCIT - 3(1), MUMBAI - 20 PAN/GIR NO. : A AACF 2216 J ( APPELLANT ) .. ( RESPONDENT ) /ASSESSEE BY : SHRI KIRIT SETH /REVENUE BY : SHRI O.P.SINGH DATE OF HEARING : 2 1 ST JANUARY , 201 4 DATE OF PRONOUNCEMENT : 21 ST JANUARY , 201 4 O R D E R PER R.C.SHARMA ( A .M.) : ITA NO. 8678/MUM/2011 THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A), DATED 29 - 9 - 2011 , FOR THE ASSESSMENT YEAR 200 8 - 09 , IN THE MATTER OF ORDER PASSED UNDER SECTION 143(3) OF THE I.T. ACT. ITA NO. 8678 & 8677 /20 1 1 2 2 . THE ASSESSEE VIDE LETTER DATED 20 - 1 - 2014 HAS REQUESTED FOR WITHDRAWAL OF APPEAL. ACCORDINGLY, WE ACCEPT THE REQUEST OF THE ASSESSEE AND DISMISS THE APPEAL AS WITHDRAWN. ITA NO.8677/MUM/2011 3. THIS APPEAL IS FILED BY THE ASSES SEE AGAINST THE ORDER OF CIT(A), DATED 23 - 11 - 2011, FOR THE ASSESSMENT YEAR 2008 - 09, IN THE MATTER OF ORDER PASSED UNDER SECTION 143(3) OF THE I.T. ACT. 4. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PERUSED. DURING THE COURSE OF SCRUTINY ASSESSMENT, THE AO DISALLOWED EXPENDITURE UNDER SECTION 14A AMOUNTING TO RS. 33,470/ - . BY THE IMPUGNED ORDER, THE CIT(A) CONFIRMED THE DISALLOWANCE. 5. WE HAVE CONSIDERED THE RIVAL CONTENTIONS. THERE IS NO DISPUTE TO THE WELL SETTLED PROPOSITION THAT EXPENDITURE INCURRED ON EARNING OF EXEMPT INCOME IS NOT ALLOWABLE AS DEDUCTION UNDER SECTION 14A READ WITH RULE 8D. HOWEVER, IN RESPECT OF EXPENDITURE RELATED TO UNQUOTED SHARES AND CAPITAL GAIN, WHICH IS LIABLE TO TAX, CANNOT BE DECINED. ACCORDINGLY, WE DIRECT THE AO TO EXCLUDE TH E INVESTMENT MADE IN UNQUOTED SHARES AS WELL AS SHARES ON WHICH CAPITAL GAIN WAS LIABLE TO TAX WHILE COMPUTING DISALLOWANCE UNDER RULE 8D. WE ORDER ACCORDINGLY. 6 . IN THE RESULT, APPEAL FILED BY THE ASSESSEE I.E ITA NO. 8678/M/2011 IS DISMISSED AS WITHDRA WN AND ITA NO. 8677/M/2011 IS ALLOWED IN PART FOR STATISTICAL PURPOSES . ITA NO. 8678 & 8677 /20 1 1 3 .E ITA NO.8678/M/2011 .E ITA NO.8677/M/2011 ORDER PRONOUNCED IN THE OPEN COURT ON THIS 21 ST JANUARY. 201 4 . 21 ST JAN,2014 SD/ - SD/ - ( ) ( AMIT SHUKLA ) ( ) ( R.C.SHARMA ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; DATED 21 /01/2014 /PKM , PS COPY OF THE ORDER FORWARDED TO : / BY ORDER, ( ASSTT. REGISTRAR) / ITAT, MUMBAI 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / THE CIT(A) - X, MUMBAI. 4. / CIT 5. / DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//