Appeal details
Counselvise Citation
[2015] 134 COUNSELVISE.COM (IT) 2407 (ITAT-MUMBAI)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
1 year(s) 9 month(s) 14 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
24-11-2015
Appeal Filed By
Department
Order Result
Dismissed
Bench Allotted
I
Next Hearing Date
24-11-2015
Assessment Year
2010-2011
Appeal Filed On
10-02-2014
Judgement Text
, IN THE INCOME TAX APPELLATE TRIBUNAL I BENCH, MUMBAI BEFORE S/SHRI B.R.BASKARAN (AM) AND AMIT SHUKLA, (JM) . . , , ./ I.T .A. NO. 940 / MUM/ 201 4 ( / ASSESSMENT YEAR : 20 10 - 11 ) DY. COMMISSIONER OF INCOME TAX (3)(2), ROOM NO.674, 6 TH FLOOR, AAYAKAR BHAVAN, M K ROAD, MUMBAI - 400020 / VS. M/S ICAN INVESTMENT S ADVISORS PVT. LTD., (FORMERLY KNOWS AN A GHA INVESTMENTS PVT LTD.), 107, MAKER CHAMBERS III, NARIMAN POINTS - MUMBAI - 400021 ( / APPELLANT ) .. ( / RESPONDENT ) CROSS - OBJECTION NO.158/MUM/2015 ARISING OUT OF ./ I.T.A. NO. 940/ MUM/ 2014 ( / ASSESSMENT YEAR : 2010 - 11 ) M/S ICAN INVESTMENT ADVISORS PVT. LTD., MUMBAI. / VS. DY. COMMISSIONER OF INCOME TAX (3)(2), MUMBAI ( / APPELLANT ) .. ( / RESPONDENT ) ./ ./PAN : AACCA0360J / REVENUE BY M R.NEIL PHILIP . / ASSESSEE BY SHRI ANIL SINGHVI / DATE OF HEARING : 2 4 .11. 201 5 / DATE OF PRONOUNCEMENT : 2 4 .11 . 201 5 ITA NO. 940 / MUM/ 201 4 CO158/M/2015 2 / O R D E R PER B.R. BASKARAN (AM) THE APPEAL FILED BY THE REVENUE AND THE CROSS OBJECTION FILED BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDER DATED 18 - 12 - 2013 PASSED BY LD CIT(A) - 4, MUMBAI AND THEY RELATE TO THE ASSESSMENT YEAR 2010 - 11. THE REVENUE IS AGGRIEVED BY THE DECISION OF LD CIT(A) I N REDUCING THE DISALLOWANCE MADE BY THE AO U/S 14A OF THE ACT. THE ASSESSEE HAS FILED THE CROSS OBJECTION BY STATING THAT THE TAX EFFECT ON THE ISSUES CONTESTED BY THE REVENUE IS LESS THAN RS.4.00 LAKHS. 2. WE HEARD THE PARTIES AND PERUSED THE RECORD. T HE ASSESSEE COMPANY IS ENGAGED IN THE BUSINESS OF PROVIDING CONSULTANCY SERVICES AND LEASING OUT OF IMMOVABLE PROPERTIES. DURING THE YEAR UNDER CONSIDERATION, THE ASSESSEE HAD MADE INVESTMENTS OF RS.47.94 CRORES AND EARNED EXEMPT INCOME OF RS.98.41 LAKHS. THE ASSESSEE HAD DISALLOWED A SUM OF RS.7,15,375/ - U/S 14A OF THE ACT. THE AO WORKED OUT THE DISALLOWANCE AS PER RULE 8D OF THE ACT AND ACCORDINGLY 0.5% OF THE AVERAGE VALUE OF INVESTMENTS, WHICH WORKED OUT TO RS.21,33,298/ - , WAS HELD TO BE DISALLOWABLE BY HIM. ACCORDINGLY, THE AO ADDED THE DIFFERENCE AMOUNT OF RS.14,71,925/ - TO THE TOTAL INCOME OF THE ASSESSEE. 3. THE LD CIT(A) NOTICED THAT THE ASSESSEE HAS ACTUALLY DEBITED EXPENDITURE TO THE TUNE OF RS.11,48,427/ - ONLY IN THE PROFIT AND LOSS ACCOU NT. HE FURTHER NOTICED THAT THE DELHI BENCH OF ITAT HAS HELD IN THE CASE OF GILLETTE GROUP INDIA (P) LTD (ITA NO.267/DEL/2012 RELATING TO AY 2008 - 09 ORDER DATED 23.3.2012) THAT THE DISALLOWANCE U/S 14A R.W.R 8D OF THE IT RULES SHOULD BE RESTRICTED TO TH E ACTUAL EXPENDITURE DEBITED TO PROFIT AND LOSS ACCOUNT. IDENTICAL VIEW WAS ALSO EXPRESSED BY THE KOLKATTA ITA NO. 940 / MUM/ 201 4 CO158/M/2015 3 BENCH OF TRIBUNAL IN THE CASE OF DCIT VS. TRADE APARTMENTS LTD (ITA NO.1277/KOL/2011 DATED 30.3.2012 RELATING TO AY 2008 - 09). ACCORDINGLY HE DIRECT ED THE AO TO RESTRICT THE DISALLOWANCE U/S 14A OF THE ACT TO THE AMOUNT OF EXPENDITURE DEBITED TO THE PROFIT AND LOSS ACCOUNT. 4. THUS, WE NOTICE THAT THE LD CIT(A) HAS FOLLOWED THE DECISIONS RENDERED BY THE CO - ORDINATE BENCH OF TRIBUNAL, WHEREIN IT HAS BEEN HELD THAT THE DISALLOWANCE U/S 14A SHOULD NOT EXCEED THE ACTUAL AMOUNT OF EXPENDITURE DEBITED TO THE PROFIT AND LOSS ACCOUNT. THE LD D.R COULD NOT BRING OUT ANY OTHER DECISION TO SHOW THAT THE DECISION RENDERED BY THE CO - ORDINATE BENCHES IS NOT CORR ECT PROPOSITION OF LAW. SINCE THE LD CIT(A) HAS FOLLOWED THE DECISION RENDERED BY THE TRIBUNAL ON AN IDENTICAL ISSUE, WE DO NOT FIND IT NECESSARY TO INTERFERE WITH HIS ORDER. 5. SINCE WE HAVE REJECTED THE APPEAL OF THE REVENUE, THE CROSS OBJECTION FILED BY THE ASSESSEE HAS BECOME INFRUCTUOUS. 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE AND THE CROSS OBJECTION FILED BY THE ASSESSEE ARE DISMISSED. PRONOUNCED ACCORDINGLY ON 24TH NOV, 201 5. 24TH N OV , 2015 SD SD ( / AMIT SHUKLA ) ( . . / B.R. BASKARAN) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI: 24TH NOV 201 5 . . . ./ SRL , SR. PS ITA NO. 940 / MUM/ 201 4 CO158/M/2015 4 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - CONCERNED 4. / CIT CONCE RNED 5. , , / DR, ITAT, MUMBAI CONCERNED 6. / GUARD FILE. / BY ORDER, TRUE COPY (ASSTT. REGISTRAR) , /ITAT, MUMBAI
