Adani Properties Pvt Ltd., Ahmedabad V. DCIT, Circle-1(1)(1), Ahmedabad

MA 30/AHD/2023

AI Insights

The case involves Adani Properties Pvt. Ltd., the assessee, who filed a Miscellaneous Application pointing out an error in the ITAT's previous order dated 21/12/2022 concerning the assessment year 2016-17. The error pertained to the amount of disallowance recorded in the order, which was mistakenly noted as Rs. 1,95,43,150 instead of the correct amount of Rs. 1,00,06,284. The Tribunal acknowledged the mistake and corrected the disallowance amount, directing the Assessing Officer to verify the adjustment.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 135685 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 20 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 16-05-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 23-03-2023
• Assessment Year: 2016-2017
• Appeal Filed On: 26-02-2023
• Laws Referred To: Income Tax Act, Income Tax Rules
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Rule 8D
• Section: 14A

Judgement Text

आयकर आयकरआयकर आयकर अपीलीय अपीलीयअपीलीय अपीलीय अिधकरण अिधकरणअिधकरण अिधकरण, अहमदाबाद अहमदाबादअहमदाबाद अहमदाबाद यायपीठ यायपीठ यायपीठ यायपीठ IN THE INCOME TAX APPELLATE TRIBUNAL, ‘’ B” BENCH, AHMEDABAD BEFORE Ms. SUCHITRA KAMBLE, JUDICIAL MEMBER, And SHRI WASEEM AHMED, ACCOUNTANT MEMBER M.A No.30/Ahd/2023 in आयकर अपील सं./ITA No. 1479/Ahd/2019 िनधा रण िनधा रणिनधा रण िनधा रण वष वष वष वष /Asstt. Years: 2016-2017 Adani Properties Pvt. Ltd., 8 th Floor, Shikhar, Nr. Mithakhali Six Roads, Ahmedabad-380009. PAN: AABCA3182H Vs. D.C.I.T, Circle-1(1)(1), Ahmedabad. Assessee by : Shri Dhrunal Bhatt, A.R Revenue by : Shri Satish Solanki, Sr. D.R सुनवाई क तारीख/Date of Hearing : 24/03/2023 घोषणा क तारीख /Date of Pronouncement: 17/05/2023 आदेश आदेशआदेश आदेश/O R D E R PER WASEEM AHMED, ACCOUNTANT MEMBER: The present Miscellaneous Application is directed at the instance of the assessee pointing out some apparent mistake in the order of the ITAT dated 21/12/2022 passed in ITA No. 1479/Ahd/2019 for AY 2016-17 and seeking necessary amendment therein. 2. The assessee in the Miscellaneous Application has submitted that the Hon’ble ITAT while dealing with the issue raised by it has inadvertently taken the amount of the disallowance at Rs. 1,95,43,150 instead of Rs. 1,00,06,284/- in para 15 & 21 of the order and accordingly, the assessee requested to amend the same to that extent. The relevant extract is reproduced as under: M.A No.30/Ahd/2023 in ITA No. 1479/Ahd/2019 A.Y. 2016-17 2 While passing the order Your Honours have, while referring to the chart submitted during the course of hearing, inadvertently referred to the column regarding “Relief” as disallowance @12%. Thus, the relief granted is lesser by Rs.95,36,866/-. This needs to be corrected in Para 15 & 21 of the order. 2.1 The ld. DR could not controvert the contention raised by the assessee in its miscellaneous application. 3. Thus, the error crept in para 15 & 21 of the order dated 21/12/2022, stands rectified and may be read as follows: 15. The learned AR further contended that the learned CIT (A) while deciding the issue has referred the order of the ITAT pertaining to the assessment year 2012-13 but the facts for the year under consideration viz a viz the facts of the earlier year are distinguishable. Therefore, the same cannot be adopted while making the disallowance under the provisions of section 14A read with rule 8D of Income Tax Rules. According to the learned AR, the amount of disallowance under rule 8D of Income Tax Rule can be calculated in the ratio of taxable and exempted income. To this effect, the learned AR has filed the chart demonstrating the distinguishing features for the year under consideration viz a viz the earlier year and the working of the disallowance in the ratio of 88% and 12% being taxable and exempted income. As such, the learned AR requested to restrict the amount of disallowance to the tune of Rs.1,00,06,284/- only against the disallowance made by the learned CIT (A) for Rs. 2,95,49,434/- only. XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX 21. Now the question arises what should be the basis of making the disallowance of the expenses against the exempted income. In the given facts and circumstances, we are of the view the said the disallowance of the expenses based on the ratio of exempted and taxable income will render justice to the Revenue and the assessee which is in the ratio of 88% and 12%. To this effect, the learned AR has filed the chart which is available on record. According to that chart, the amount of disallowance under rule 8D of income tax rules comes out at Rs.1,00,06,284/- only. Thus, we set aside the finding of the learned CIT (A) with the direction to the AO to work out the amount of disallowance of Rs. 1,00,06,284/- being 12% of the administrative expenses subject to verification. Hence, the ground of appeal of the assessee is partly allowed whereas the ground of appeal of the revenue is dismissed. 6. In the result, the Miscellaneous Application filed by the assessee is allowed. Order pronounced in the Court on 17/05/2023 at Ahmedabad. Sd/- Sd/- (SUCHITRA KAMBLE) (WASEEM AHMED) JUDICIAL MEMBER ACCOUNTANT MEMBER (True Copy) Ahmedabad; Dated 17/05/2023 Manish