United Metal Industries, CHENNAI V. ACIT Non Corporate Circle 3, CHENNAI

MA 31/CHNY/2021

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 2927 (ITAT-CHENNAI)
• Duration Of Justice: 8 month(s) 9 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 11-08-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 11-08-2022
• Assessment Year: 2012-2013
• Appeal Filed On: 02-12-2021
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Rule 8D; Set aside
• Section: 14A

Judgement Text

आयकर अपीलȣय अͬधकरण, ‘ए Ûयायपीठ, चेÛनई IN THE INCOME TAX APPELLATE TRIBUNAL , ‘A’ BENCH, CHENNAI Įी वी. द ु गा[ राव, ÛयाǓयक सदèय एवं Įी जी. मंज ु नाथ, लेखा सदèय के सम¢ BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI G.MANJUNATHA, ACCOUNTANT MEMBER Misc.Application No.31/Chny/2021 [In ITA No.2070/Chny/2018] (Ǔनधा[रणवष[ / Assessment Year: 2012-13) M/s. United Metal Industries 9, McNichols Road, Chetpet, Chennai-600 031. Vs The Assistant Commissioner of Income Tax, Non-Corporate Circle-3 Chennai PAN:AAAFU 1182F (ᮧाथᭅक /Petitioner) (Ĥ×यथȸ/Respondent) ᮧाथᭅक कȧ ओरसे/ Petitioner by : Mr. Tarun, Advocate for Mr.S.Sridhar, Advocate Ĥ×यथȸ कȧ ओरसे/Respondent by : Mr. Sajit Kumar, JCIT स ु नवाई कȧ तारȣख/Date of hearing : 12.08.2022 घोषणा कȧतारȣख /Date of Pronouncement : 12.08.2022 आदेश / O R D E R PER G. MANJUNATHA, AM: The present Miscellaneous Petition is filed against order of this Tribunal dated 18.08.2021 in ITA No.2070/Chny/2018 relevant to the assessment year 2012-13. 2. We have heard both the parties and considered relevant contents of Miscellaneous Application filed by the assessee and we find that there is no merit in the arguments taken by the learned counsel for the assessee in light of provisions of section 14A read with Rule 8D of the Income Tax Rules, 1962, on the issue of disallowance of interest expenses, more particularly, ground no. 2 & 3 of grounds of appeal filed along with Form No.36, because the issue of disallowance u/s.14A read with Rule 8D has been set aside to the file of the Assessing Officer, with a direction to 2 M.A. No.31 /Chny/2021 examine claim of the assessee with regard to availability of own funds / interest free funds and determine disallowances. Since, the matter has been set aside to the file of the Assessing Officer, question of further directing the Assessing Officer how to compute such disallowances cannot arise, because procedure for disallowances has already been provided in Rule 8D of the Income Tax Rules, 1962, where the Assessing Officer has to compute disallowance of expenses on the basis of opening and closing balance of average value of investments. Therefore, we are of the considered view that the assessee has failed to make out a case of mistake apparent on record which can be rectified u/s.254(2) of the Income Tax Act, 1961, and thus, the Misc. Application filed by the assessee is dismissed. 3. In the result, Miscellaneous Application filed by the assessee is dismissed. Order pronounced in the open court on 12 th August, 2022 Sd/- Sd/- ( वी. द ु गा[ राव) (जी. मंज ु नाथ) (V.Durga Rao) (G.Manjunatha) ÛयाǓयक सदèय /Judicial Member लेखा सदèय / Accountant Member चेÛनई/Chennai, Ǒदनांक/Dated 12 th August, 2022 DS आदेश कȧ ĤǓतͧलͪप अĒेͪषत/Copy to: 1. Appellant 2. Respondent 3. आयकर आय ु Èत (अपील)/CIT(A) 4. आयकर आय ु Èत/CIT 5. ͪवभागीय ĤǓतǓनͬध/DR 6. गाड[ फाईल/GF.