Mohanlal Hargovindas Bidi Udyog Pvt. Ltd., Jabalpur V. Joint Commissioner of Income Tax, Jabalpur

ITA 92/JAB/2013

• Counselvise Citation: 9222914 RSA 2013
• Duration Of Justice: 1 year(s) 11 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 04-02-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 22-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHISHEK SHUKLA
• Keywords: Rule of consistency; Earning of tax free income
• Section: 143(3); 14A

Judgement Text

INCOME TAX APPELLATE TRIBUNAL, JABALPUR BENCH, JABALPUR BEFORE : SHRI I. C. SUDHIR, JUDICIAL MEMBER A ND SHRI PRAMOD KUMAR, ACCOUNTA NT MEMBER ITA NO.92/JAB./2013 ASSESSMENT YEAR : 2009-10 MOHAN LAL HARGOVINDDAS VS. J.C.I.T., RANGE-1, BIDI UDYOG PVT. LTD., JABALPUR. 903, M.H. HOUSE GOLE BAZAR, JABALPUR. (PAN: AACCM 9520G) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI VIJAY GUPTA, ADVOCATE RESPONDENT BY : SHRI ABHISHEK SHUKLA, D.R. DATE OF HEARING : 04.02.2015 DATE OF PRONOUNCEMENT : 27 .03.2015 ORDER PER PRAMOD KUMAR, A.M.: 1. BY WAY OF THIS APPEAL, THE ASSESSEE APPELLANT HA S CHALLENGED CORRECTNESS OF THE ORDER DATED 12 TH NOVEMBER, 2012 PASSED BY THE CIT(A) IN THE MATTER OF ASSESSMENT UNDER SECTION 143(3) OF THE INCOME TAX A CT, 1961 FOR THE ASSESSMENT YEAR 2009-10. 2. ALTHOUGH ASSESSEE HAS RAISED AS MANY AS NINE GRO UNDS OF APPEAL, THE SHORT GRIEVANCE OF THE ASSESSEE IS THAT IN THE FACTS AND CIRCUMSTANCES OF THE CASE, THE CIT(A) ERRED IN UPHOLDING THE DISALLOWANCE OF RS.11 ,65,699/- MADE BY THE ASSESSING OFFICER UNDER SECTION 14A READ WITH RULE 8D. 3. THE LEARNED REPRESENTATIVES FAIRLY AGREE THAT TH E ISSUE IS COVERED BY TRIBUNALS DECISION IN ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2006-07 WHEREIN THE TRIBUNAL HAS, INTER ALIA, OBSERVED AS FOLLOWS : 2 ITA NO. 92/JAB./2013 10. CONSIDERING THE ABOVE DISCUSSIONS AND MATERIAL ON RECORD, IT IS CLEAR THAT PROVISIONS OF SECTION 14A OF THE ACT WOULD NOT APPLY IN THE CA SE OF THE ASSESSEE BECAUSE ONLY EXPENSES INCURRED FOR EARNING OF THE EXEMPT INCOME CAN BE DI SALLOWED. NO INTEREST HAS BEEN INCURRED ON ANY INVESTMENT TO EARN EXEMPT INCOME. T HE ASSESSEE HAS INVESTED ONLY THE INTEREST FREE FUNDS AVAILABLE TO IT. THEREFORE, ADD ITION ON ACCOUNT OF DISALLOWANCE UNDER SECTION 14A IS NOT JUSTIFIED. THE A.O. SHOULD HAVE ALSO FOLLOWED RULE OF CONSISTENCY ON IDENTICAL FACTS AS WERE CONSIDERED IN EARLIER YEARS AND SHOULD NOT HAVE MADE DISALLOWANCE IN ASSESSMENT YEARS UNDER APPEAL ON IDENTICAL FACTS . THE DECISION CITED BY LD. D.R. IS CLEARLY DISTINGUISHABLE ON FACT. WE ACCORDINGLY, SE T ASIDE THE ORDERS OF AUTHORITIES BELOW AND DELETE ALL THE ADDITIONS IN ALL THE ASSESSMENT YEARS UNDER APPEAL AS ABOVE. 4. THE LEARNED REPRESENTATIVES FAIRLY AGREE THAT AL L THE MATERIAL FACTS AND CIRCUMSTANCES OF THIS ASSESSMENT YEAR ARE SAME AS O F THE ASSESSMENT YEAR 2006-07. WE, THEREFORE, SEE NO REASONS TO TAKE ANY OTHER VIE W IN THE MATTER THAN THE VIEW SO TAKEN BY THE TRIBUNAL IN ASSESSEES OWN CASE. RESP ECTFULLY FOLLOWING THE SAID ORDER, WE UPHOLD THE GRIEVANCE OF THE ASSESSEE AND DIRECT THE ASSESSING OFFICER TO DELETE THE IMPUGNED DISALLOWANCE OF RS. RS.11,65,699/- . T HE ASSESSEE GETS A RELIEF ACCORDINGLY. 5. IN THE RESULT, THE APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 27 TH MARCH, 2015. SD/- SD/- (I.C. SUDHIR) (PRAMOD K UMAR) JUDICIAL MEMBER ACCOUNTANT MEMBER DATE: 27 TH MARCH, 2015 *AKS/- COPY OF THE ORDER FORWARDED TO : 1. APPELLANT 2. RESPONDENT 3. CIT(A), CONCERNED 4. CIT, CONCERNED 5. DR ITAT, JABALPUR BENCH 6. GUARD FILE //TRUE COPY// BY O RDER, ASSTT. REGISTRAR ITAT, JABALPUR BENCH, JABALPUR