Geojit Investment Services Ltd, Cochin V. The ACIT, Cochin

MA 25/COCH/2015

• Counselvise Citation: [2015] 124 COUNSELVISE.COM (IT) 3412 (ITAT-COCHIN)
• Duration Of Justice: 6 month(s) 1 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 07-09-2015
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Next Hearing Date: 04-09-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 06-03-2015
• Court: TRIBUNAL
• Department Lawyers: V R GOPAKUMAR
• Assessee Lawyers: A S NARAYANAMOORTHY
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH C OCHIN BEFORE S/SHRI B.P. JAIN, AM AND GEORGE GEOR GE K., JM M.P. NO. 25/COCH/2015 (ARISING OUT OF . I.T.A. NO. 261/COCH/2014) ASSESSMENT YEAR : 2008-09 M/S. GEOJIT INVESTMENT SERVICES LIMITED, 34/659, CIVIL LINE ROAD, PADIVATTOM, KOCHI-682024. [PAN: AACCG 2328J] VS. THE ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE-1(2), KOCHI. (ASSESSEE -APPELLANT) (REVENUE-RESPONDENT) ASSESSEE BY SHRI A.S. NARAYANAMOORTHY, CA REVENUE BY SHRI V.R. GOPAKUMAR, SR. DR DATE OF HEARING 04/09/2015 DATE OF PRONOUNCEMENT 07/09/2015 O R D E R PER B.P.JAIN, ACCOUNTANT MEMBER: THIS MISCELLANEOUS PETITION FILED BY THE ASSE SSEE ARISES OUT OF THE ORDER PASSED BY THE ITAT, COCHIN BENCH IN I.T.A. NO. 261/ COCH/2014 DATED 28/08/2014. 2. THE LD. COUNSEL FOR THE ASSESSEE HAS POINTED OU T MISTAKE IN PARA 14 OF THE ORDER OF THE ITAT, COCHIN BENCH WHICH IS REPROD UCED BELOW: 14. IN OUR OPINION, THE DISALLOWANCE U/S. 14A IN T HE ASSESSMENT YEAR UNDER CONSIDERATION IS WARRANTED. SINCE THERE IS MISTAKE IN COMPUTING THE DISALLOWANCE AS RIGHTLY POINTED OUT B Y THE LD. AR, WE M.P. NO.25/COCH/2015 2 ARE INCLINED TO HOLD THAT NET CURRENT ASSETS IS TO BE CONSIDERED WHILE APPLYING THE FORMULA UNDER RULE 8D OF THE I.T. RULE S INSTEAD OF GROSS CURRENT ASSETS. ACCORDINGLY, WE DIRECT THE ASSESSI NG OFFICER TO RE- COMPUTE THE DISALLOWANCE AND DECIDE THE ISSUE AFRES H IN THE LIGHT OF THE ABOVE OBSERVATION. ACCORDINGLY, THIS GROUND IS PARTLY ALLOWED. 3. HE INVITED OUR ATTENTION TO RULE 8D(3) WHICH FOR THE SAKE OF CONVENIENCE IS REPRODUCED HEREINBELOW: (3) FOR THE PURPOSES OF THIS RULE, THE TOTAL ASS ETS SHALL MEAN, TOTAL ASSETS AS APPEARING IN THE BALANCE SHEET EXCLUDING THE INCREASE ON ACCOUNT OF REVALUATION OF ASSETS BUT INCLUDING THE DECREASE ON ACCOUNT OF REVALUATION OF ASSETS. RULE 8D MENTIONS TOTAL ASSETS AND THEREFORE, TOTAL ASSETS ARE TO BE CONSIDERED WHILE APPLYING THE FORMULA UNDER RULE 8D INSTEAD OF NET CURRENT ASSETS WHICH IS A MISTAKE APPARENT FROM RECORD. AC CORDINGLY, THE LD. COUNSEL FOR THE ASSESSEE PRAYED TO RECTIFY THE MIST AKE. 4. THE LD. DR CONSIDERED THE MISTAKE BEING APPARENT FROM RECORD AND DID NOT RAISE ANY OBJECTION. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE FACTS OF THE CASE. ON PERUSAL OF PARA 14 OF THE ORDER OF THE IT AT, COCHIN BENCH REPRODUCED HEREINABOVE AND ALSO RULE 8D(3) REPRODUC ED HEREINABOVE, WE ARE OF THE VIEW THAT THE TOTAL CURRENT ASSETS HAVE TO BE CONSIDERED INSTEAD M.P. NO.25/COCH/2015 3 OF NET CURRENT ASSETS WHICH IS WRONGLY MENTIONED IN THE ITAT ORDER AND IS A MISTAKE APPARENT FROM RECORD. THEREFORE, IN OUR VIE W, PARA 14 OF THE ORDER OF THE ITAT, COCHIN BENCH DATED 28/08/2014 HAS TO B E READ AS UNDER: 14. IN OUR OPINION, THE DISALLOWANCE U/S. 14A IN T HE ASSESSMENT YEAR UNDER CONSIDERATION IS WARRANTED. SINCE THERE IS MISTAKE IN COMPUTING THE DISALLOWANCE AS RIGHTLY POINTED OUT B Y THE LD. AR, WE ARE INCLINED TO HOLD THAT GROSS CURRENT ASSETS IS T O BE CONSIDERED WHILE APPLYING THE FORMULA UNDER RULE 8D OF THE I.T . RULES INSTEAD OF NET CURRENT ASSETS. ACCORDINGLY, WE DIRECT THE ASS ESSING OFFICER TO RE- COMPUTE THE DISALLOWANCE AND DECIDE THE ISSUE AFRES H IN THE LIGHT OF THE ABOVE OBSERVATION. ACCORDINGLY, THIS GROUND IS PARTLY ALLOWED. ACCORDINGLY, THE MISCELLANEOUS PETITION FILED BY TH E ASSESSEE IS ALLOWED. 6. IN THE RESULT, THE MISCELLANEOUS PETITION FILED BY THE ASSESSEE IS ALLOWED. PRONOUNCED IN THE OPEN COURT ON 07-09-2015. SD/- SD/- (GEORGE GEORGE K.) (B.P. JAIN) JUDICIAL MEMBER ACC OUNTANT MEMBER PLACE: KOCHI DATED: 07TH SEPTEMBER, 2015 GJ COPY TO: 1. M/S. GEOJIT INVESTMENT SERVICES LIMITED, 34/659 , CIVIL LINE ROAD, PADIVATTOM, KOCHI-682024. 2. THE ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE -1(2), KOCHI. 3. THE COMMISSIONER OF INCOME-TAX(APPEALS)-II, KOCH I. 4. THE COMMISSIONER OF INCOME-TAX, KOCHI. 5. D.R., I.T.A.T.,COCHIN. 6. GUARD FILE. BY ORDER (ASSISTAN T REGISTRAR) I.T.A.T., COCHIN M.P. NO.25/COCH/2015 4