GODREJ AGROVET LTD, MUMBAI V. DCIT 10(2), MUMBAI

MA 14/MUM/2017

• Counselvise Citation: [2018] 124 COUNSELVISE.COM (IT) 6089 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 13 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 19-01-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2008-2009
• Appeal Filed On: 06-01-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard
• Section: 14A

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES G, MUMBAI , , , BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER, AND SHRI RAJENDRA, ACCOUNTANT MEMBER MA. NO.14/MUM/2017 (ARISING OUT OF ITA NO.8489/MUM/2011) ASSESSMENT YEARS:2008-09 M/S GODREJ AGROVET LTD., C/O- KALYANIWALLA & MISTRY ARMY & NAVY BUILDING, 3 RD FLOOR, 148. M.G. ROAD, MUMBAI-400001 VS DCIT-10(2), AAYAKAR BHAVAN M.K.ROAD, MUMBAI-400020 ( /ASSESSEE) ( ! / REVENUE) PAN. NO. AAACG0617Q # !$ % & / DATE OF HEARING : 19/01/2018 % & / DATE OF ORDER: 19/01/2018 / ASSESSEE BY SHRI JITENDRA JAIN ! / REVENUE BY SHRI RAJAT MITTAL-DR MA. NO.14/MUM/2017 (ARISING OUT OF ITA NO.8489/MUM/2011) M/S GODREJ AGROVET LTD . 2 / O R D E R PER JOGINDER SINGH (JUDICIAL MEMBER) THIS MISCELLANEOUS APPLICATION AROSE OUT OF ITA NO. 8489/MUM/2011 FOR THE ASSESSMENT YEAR 2008-09 WHICH WAS DISPOSED BY THE TRIBUNAL, VIDE ORDER DATED 05/07/2016. AS PER THE LD. COUNSEL FOR THE ASSESSEE , SHRI JITENDRA JAIN, SOME MISTAKE HAS CREPT INTO THE ORDE R AS PARAGRAPH NO.8 TO 12 OF THE ORDER OF THE TRIBUNAL F OR ASSESSMENT YEAR 2006-07 WERE REPRODUCED, WHICH PERT AINS TO DISALLOWANCE OF INTEREST U/S 36(1)(III) OF THE A CT, WHEREAS, ISSUE OF DISALLOWANCE U/S 14A OF THE ACT HAS BEEN D EALT WITH AT PARAGRAPH 3 TO 7 OF THE ORDER OF THE TRIBUN AL. THE CRUX OF THE ARGUMENT IS THAT OWN FUNDS OF THE ASSES SEE WERE SUFFICIENT TO COVER ITS INVESTMENT, THEREFORE, INTEREST DISALLOWANCE U/S 14A OF THE ACT IS NOT WARRANTED. O N THE OTHER HAND, THE LD. DR, SHRI RAJAT MITTAL, CONTENDE D THAT THERE IS NO MISTAKE IN THE ORDER AND THE TRIBUNAL H AS DIRECTED THE ASSESSING OFFICER TO EXAMINE THE CLAIM OF THE ASSESSEE AND DECIDE AFRESH, THEREFORE, THERE IS NO GRIEVANCE IS CAUSED TO THE ASSESSEE. THE ASSESSEE IS AT LIBER TY TO MA. NO.14/MUM/2017 (ARISING OUT OF ITA NO.8489/MUM/2011) M/S GODREJ AGROVET LTD . 3 SUBSTANTIATE ITS CLAIM EXPLAINING THAT OWN FUNDS AR E MORE THAN THE INVESTMENT MADE BY THE ASSESSEE. 2. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. CONSIDERI NG THE TOTALITY OF FACTS, WE FIND THAT THE TRIBUNAL HAS CI TED VARIOUS DECISIONS INCLUDING THE CASE OF COLGATE PALMOLIVE I NDIA LTD. AND KAVERI OIL PLANTATION (PAGE-31 OF THE ORDER OF THE TRIBUNAL) AND IT HAS BEEN OBSERVED THAT THERE IS A MERIT IN THE CONTENTION/EXPLANATION OF THE ASSESSEE, THEREFO RE, THE LD. ASSESSING OFFICER WAS DIRECTED TO EXAMINE THE F ACTUAL MATRIX WITH RESPECT TO AVAILABILITY OF OWN FUNDS VI S--VIS INVESTMENT MADE BY THE ASSESSEE. THE ASSESSEE WAS DIRECTED TO PRODUCE THE EVIDENCE BEFORE THE LD. ASS ESSING OFFICER TO SUBSTANTIATE ITS CLAIM. IN PRINCIPLE, WE FIND NO INFIRMITY IN THE ORDER OF THE TRIBUNAL. HOWEVER, FO R THE SAKE FURTHER CLARITY IN THE ORDER, AS DESIRED BY THE ASS ESSEE, THE LD. ASSESSING OFFICER IS DIRECTED TO EXAMINE THE CL AIM OF THE ASSESSEE, AND AFTER DUE OPPORTUNITY OF BEING HEARD, DECIDE IN ACCORDANCE WITH LAW, CONSIDERING THE OBSERVATION MADE IN PARA 3 TO 7 OF THE ORDER OF THE TRIBUNAL FOR ASS ESSMENT MA. NO.14/MUM/2017 (ARISING OUT OF ITA NO.8489/MUM/2011) M/S GODREJ AGROVET LTD . 4 YEAR 2006-07. THE MISCELLANEOUS APPLICATION OF THE ASSESSEE IS DISPOSED OF IN TERMS INDICATED HEREINAB OVE. FINALLY, THE MISCELLANEOUS APPLICATION OF THE ASSES SEE IS DISPOSED OF IN TERMS INDICATED HEREINABOVE. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN THE PRESENT OF LD. REPRESENTATIVE FROM BOTH SIDES AT TH E CONCLUSION OF THE HEARING ON 19/01/2018. SD/- SD/- ( RAJENDRA ) (JOGINDER SINGH) ! ' / ACCOUNTANT MEMBER # ' /JUDICIAL MEMBER # $ MUMBAI; ( DATED : 19/01/2018 F{X~{T? P.S/. . . $#%&'(')% / COPY OF THE ORDER FORWARDED TO : 1. *+,- / THE APPELLANT 2. ./,- / THE RESPONDENT. 3. 0 0 # 1 ( *+ ) / THE CIT, MUMBAI. 4. 0 0 # 1 / CIT(A)- , MUMBAI 5. 3!4 . , 0 *+& *5 , # $ / DR, ITAT, MUMBAI 6. 6 7$ / GUARD FILE. / BY ORDER, / (DY./ASSTT. REGISTRAR) , # $ / ITAT, MUMBAI