AUTOMOTIVE MANUFACTURES P.LTD, V. ASST CIT CIR 10(1),

MA 22/MUM/2015

• Counselvise Citation: [2015] 124 COUNSELVISE.COM (IT) 3287 (ITAT-MUMBAI)
• Duration Of Justice: 4 month(s) 30 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 26-06-2015
• Appeal Filed By: Assessee
• Bench Allotted: A
• Assessment Year: 2004-2005
• Appeal Filed On: 27-01-2015
• Court: TRIBUNAL
• Department Lawyers: VIVEK PERAMPURNA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A , BENCH MUMBAI BEFORE SHRI R.C.SHARMA, AM & SHRI AMIT SHUKLA , J M M A NO. 22 / MUM/20 1 5 (ARISING OUT OF ITA NO . 1984 /MUM/20 1 3 ) ( ASSESSMENT YEAR : 200 4 - 0 5 ) M /S AUTOMOTIVE MANUFACTURERS PVT. LTD., 108, AUTOMOTIVE HOUSE, BAZAR WARD, KURLA (W), MUMBAI - 400070 VS. ACIT, CIRCLE - 10(1), MUMBAI ./ ./ PAN/GIR NO. : A AAC A 3428 K ( / APPELLANT ) .. ( / RESPONDENT ) ASSESSEE BY : SHRI RAJESH P. SHAH REVENUE BY : SHRI VIVEK PERAMPURNA DATE OF HEARING : 26 - 6 - 2015 DATE OF PRONOUNCEMENT : 21 - 8 - 2015 O R D E R PER R.C.SHARMA, AM : TH IS MISCELLANEOUS APPLICATION AROSE OUT OF ITA NO. 1984 /MUM/20 1 3 , VIDE ORDER DATED 18 - 6 - 2014 . 2. THROUGH THIS MISCELLANEOUS APPLICATION THE ASSESSEE HAS CHALLENGED THAT THERE IS AN APPARENT MISTAKE IN THE ORDER OF TRIBUNAL INSOFAR AS IT PERTAINS TO DISALLOWANCE MADE U/S.14A. IT WAS CONTENDED THAT WHILE PASSING THE ORDER THE TRIBUNAL HAS CONFIRMED THE ADDITION OF RS. 2,41, 140/ - , WHICH WAS ALREADY DELETED BY THE CIT(A) AGAINST WHICH THE REVENUE IS NOT IN APPEA L BEFORE THE TRIBUNAL. 3. WE HAVE CONSIDERED RIVAL CONTENTIONS, CAREFULLY GONE THROUGH THE ORDER OF THE TRIBUNAL AS WELL ORDER PASSED BY THE LOWER AUTHORITIES AND FOUND THAT DISALLOWANCE WAS MADE BY THE AO U/S.14A IN THE ORIGINAL ASSESSMENT ORDER PASSED ON 31 - 1 - 2006 . IN AN APPEAL FILED BEFORE THE TRIBUNAL THE MATTER WAS RESTORED BACK TO THE FILE OF AO FOR DECIDING MA NO. 22 /20 1 5 2 AFRESH. IN THE ORDER PASSED TO GIVE EFFECT TO THE ORDER OF ITAT, THE AO HAS ENHANCED THE DISALLOWANCE BY RS. 4,79,925/ - U/S.14A IN RESPECT OF DIRE CT AND INDIRECT EXPENDITURE. IN AN APPEAL FILED BEFORE THE CIT(A), THE CIT(A) HAVE DEALT WITH THE GROUND NO.3 & 4 OF ASSESSEES APPEAL TOGETHER FOR DECIDING THE DISALLOWANCE MADE ON ACCOUNT OF DIRECT AND INDIRECT EXPENSES. WE FOUND THAT AFTER GIVING DETAIL ED FINDING AND REASONING WITH RESPECT TO THE APPELLATE ORDER PASSED IN ASSESSMENT YEAR 2005 - 06, THE CIT(A) HAS RESTRICTED TOTAL DISALLOWANCE AT RS. 25,000/ - . IT APPEARS FROM THE ORDER OF THE CIT(A) THAT DISALLOWANCE OF DIRECT EXPENSES ON ACCOUNT OF INTEREST WAS DELETED ON THE PLEA THAT ASSESSEE WAS HAVING SUFFICIENT FUNDS, HOWEVER, ON ACCOUNT OF INDIRECT EXPENSES IN THE FORM OF ADMINISTRATIVE EXPENSES, DISALLOWANCE WAS RESTRICTED TO RS.25,000/ - ONLY. SINCE THE REVENUE WAS NOT IN APPEAL AGAINST THE ADDITION D ELETED BY THE CIT(A) WITH RESPECT TO THE DISALLOWANCE U/S.14A, THERE IS NO REASON FOR CONSIDERING THE DISALLOWANCE DELETED BY CIT(A), HOWEVER, IN PARA 5 OF THE TRIBUNALS ORDER DATED 18 - 6 - 2014, IT WAS OBSERVED THAT THE CIT(A) HAS NOT DISCUSSED THE DISALLOW ANCE OF RS. 2,57,832/ - . ACCORDINGLY THE SAME WAS UPHELD, WHICH IS FACTUALLY INCORRECT. SINCE THE CIT(A) HAS DEALT WITH THE DISALLOWANCE OF BOTH DIRECT AND INDIRECT EXPENSES SIMULTANEOUSLY AND CONFIRMED THE DISALLOWANCE TO THE EXTENT OF RS. 25,000/ - ONLY . T HE RE IS NO JUSTIFICATION ON THE PART OF TRIBUNAL TO INCREASE THE DISALLOWANCE BEYOND THE DISALLOWANCE RETAINED BY CIT(A) INSOFAR AS REVENUE IS NOT IN APPEAL BEFORE US . ACCORDINGLY, WE RECTIFY THE APPARENT MA NO. 22 /20 1 5 3 MISTAKE IN OUR ORDER AND CONFIRM THE ACTION OF THE CI T(A) FOR UPHOLDING THE DISALLOWANCE OF RS.25,000/ - RESULTING INTO RELIEF TO THE ASSESSEE TO THE EXTENT OF RS. 6,30,260/ - IN PLACE OF RS.3,89,120/ - . WE DIRECT ACCORDINGLY. 4 . IN THE RESULT, MISCELLANEOUS APPLICATION OF THE ASSESSEE IS ALLOWED IN THE TERMS IN DICATED HEREINABOVE. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 21/08 /2015 SD/ - ( AMIT SHUKLA ) SD/ - ( R.C.SHARMA ) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED : 21/08 /201 5 . . /PKM , . / PS / COPY OF THE ORDER FORWARDED TO : / BY ORDER, / ( ASSTT. REGISTRAR) , / ITAT, MUMBAI 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A), MUMBAI. 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE. //TRUE COPY//