REVASHANKAR GEMS LIMITED, MUMBAI V. DEPUTY COMMISSIONER OF INCOME TAX - CIRCLE 5(3)(1), MUMBAI

ITA 977/MUM/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 9282 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2012-2013
• Appeal Filed On: 20-02-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHI RAMA KARTIKEYANLD
• Assessee Lawyers: APURVA SHAH LD
• Keywords: Rule 8D
• Section: 14A

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, MUMBAI , , BEFORE HONBLE SHRI MAHAVIR SINGH, JM AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM ./ I.T.A. NO.977/MUM/2018 ( / ASSESSMENT YEAR:2012-13) & ./ I.T.A. NO.978/MUM/2018 ( / ASSESSMENT YEAR:2013-14) M/S. REVASHANKER GEMS L TD. A-4, PURSHOTTAM BUILDING OPERA HOUSE MUMBAI-400 004. / VS. D CIT - C IRCLE - 5 (3)( 1 ) AAYKAR BHAVAN, M.K. ROAD MUMBAI-40 020. ./ ./PAN/GIR NO. AAACR-4649-D ( ! /APPELLANT ) : ( '#! / RESPONDENT ) APPELLANT BY : APURVA SHAH-LD.AR RESPONDENT BY : ABHI RAMA KARTIKEYAN - LD.DR / DATE OF HEARING : 20/03/2019 / DATE OF PRONOUNCEMENT : 03/04/2019 / O R D E R PER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. AFORESAID APPEALS BY ASSESSEE FOR ASSESSMENT YEA RS [IN SHORT REFERRED TO AS AY] 2012-13 AND 2013-14 CONTEST CO MMON ORDER OF LD. FIRST APPELLATE AUTHORITY QUA CONFIRMATION OF CERTAIN DISALLOWANCE U/S 14A. 2. BOTH THE REPRESENTATIVE, AT THE OUTSET, CONVERGE ON THE POINT THAT THE IDENTICAL ISSUE HAS ALREADY BEEN CONSIDERED BY THE TRIBUNAL IN ASSESSEES OWN CASE FOR AY 2011-12 ITA NO.1046/MUM/2016 DATED 2 05/02/2018 WHEREIN THE MATTER HAS BEEN RESTORED BAC K WITH CERTAIN DIRECTIONS. A COPY OF THE ORDER BEEN PLACED ON RECO RD. THEREFORE, SIMILAR DIRECTIONS HAVE BEEN SOUGHT BY THE RESPECTIVE REPRE SENTATIVES FOR THESE YEARS ALSO. 3. FACTS ON RECORD FOR AY 2012-13 REVEAL THAT THE A SSESSEE HAS BEEN SADDLED WITH NET DISALLOWANCE U/S 14A READ WITH RULE 8D FOR RS.13.64 LACS. THE ASSESSEE EARNED EXEMPT DIVIDEND INCOME OF RS.8.83 LACS AND OFFERED SUO-MOTO DISALLOWANCE U/S 14A FOR RS.3.13 LACS, THE BREAK- UP OF WHICH HAS BEEN GIVEN ON PARA 2 OF THE QUANTUM ASSESSMENT ORDER. HOWEVER, LD. AO COMPUTED AGGREGATE DISALLOWANCE U/R 8D (2) FOR RS.16.78 LACS AND ACCORDINGLY AFTER ADJUSTING SUO-MOTO DISALLOWANCE ALREADY OFFERED BY THE ASSESSEE, ADDED THE DIFFEREN TIAL AMOUNT OF RS.13.64 LACS TO THE INCOME OF THE ASSESSEE. THE LD . FIRST APPELLATE AUTHORITY, AFTER CONSIDERING ASSESSEES SUBMISSIONS , DIRECTED LD.AO TO RESTRICT THE SAME TO RS.8.83 LACS, BEING EXEMPT INC OME EARNED BY THE ASSESSEE. STILL AGGRIEVED, THE ASSESSEE IS IN FURTH ER APPEAL BEFORE US. 4. UPON PERUSAL OF CITED ORDER OF THE TRIBUNAL DATE D 05/02/2018 FOR AY 2011-12, WE FIND THAT THE MATTER OF DISALLOWANCE U/ S 14A HAS BEEN RESTORED BACK TO THE FILE OF LD. AO WITH CERTAIN DI RECTIONS AS GIVEN IN PARA-6 OF THE CITED ORDER. THEREFORE, FACT BEING IDENTICAL , THE MATTER STAND RESTORED BACK TO THE FILE OF LD. AO FOR RE-ADJUDICA TION ON SIMILAR LINES. THE APPEAL STANDS ALLOWED FOR STATISTICAL PURPOSES. 5. THE IMPUGNED ORDER IS COMMON ORDER FOR BOTH THE YEARS AND THE FACTS ARE PARI-MATERIA THE SAME FOR AY 2013-14. THEREFORE, OUR DIRECTIONS AS GIVEN IN AY 2012-2013 SHALL MUTATIS MUTANDIS APPLY TO AY 2013-14 ALSO. THE APPEAL STANDS ALLOWED FOR STATISTICAL PUR POSES. 3 6. RESULTANTLY, BOTH THE APPEALS STAND ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 03 RD APRIL, 2019. SD/- SD/- (MAHAVIR SINGH) ( MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 03/04/2019 SR.PS, JAISY VARGHESE !'#$ # / COPY OF THE ORDER FORWARDED TO : 1. ! / THE APPELLANT 2. '#! / THE RESPONDENT 3. * ( ) / THE CIT(A) 4. * / CIT CONCERNED 5. +, '%- , - , / DR, ITAT, MUMBAI 6. ,./0 / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.