MAANRAJ TRADING PRIVATE LIMITED ( UNDERLIQUIDATION), MUMBAI V. DEPUTY COMMISSIONER OF INCOME TAX 8 (3) (2) , MUMBAI

MA 405/MUM/2017

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 2139 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 3 month(s) 2 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 19-11-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: I
• Assessment Year: 2005-2006
• Appeal Filed On: 17-08-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: AJAY KUMAR OJHA
• Keywords: Earning of tax free income
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH D , MUMBAI BEFORE SHRI C.N. PRASAD, HON'BLE JUDICIAL MEMBER & SHRI M. BALAGANESH , HON'BLE ACCOUNTANT MEMBER M .A. NO. 405 /MUM/201 7 [ ARISING OUT OF ITA.NO. 3414/MUM/2009 (A.Y: 20 05 - 06)] M /S. MAANRAJ TRADING PVT. LTD., POONAM CHAMBERS , 101E, 1 ST FLOOR DR. ANNIE BESANT ROAD, WORLI MUMBAI 400 018 PAN: AAACM0150 V. ACIT CIRCLE 6(3) AAYAKAR BHAVAN, M.K. ROAD MUMBAI 400 020 (APPELLANT) (RESPONDENT) ASSESSEE BY : MS. VASANTI PATEL SHRI KIRIT R. KAMDAR DEPARTMENT BY : SHRI AJAY KUMAR OJHA DATE OF HEARING : 12.07.2019 DATE OF PRONOUNCEMENT : 19 . 11 .2019 O R D E R PER C. N. PRASAD (JM) 1. THROUGH THIS MISCELLANEOUS APPLICATION ASSESSEE I S SEEKING RECTIFICATION OF THE ORDER OF THE TRIBUNAL PASSED IN ITA.NO. 3414/MUM/2009 DATED 12.04.2017. 2. IN THE MISCELLANEOUS APPLICATION THE ASSESSEE CONTENDS THAT T HE TRIBUNAL ACCEPTED THAT THE INVESTMENTS SOLD BY THE ASSESSEE ARE STOCK IN 2 M.A. NO.405/MUM/2017 M/S. MAANRAJ TRADING PVT. LTD., TRADE AND SHOULD NOT BE FORMING PART OF INVESTMENTS AND THUS OUTSIDE THE PURVIEW OF COMPUTATION OF DISALLOWANCE U/S. 14A OF THE ACT. THEREFORE, IT IS CONTENDED IN THE MISCELLANEOUS APPLICATION THAT , SINCE THE TRIBUNAL HELD THAT NO DISALLOWANCE OUGHT TO BE MA D E U/S. 1 4 A OF THE ACT IN RESPECT OF THE SHARES OR UNITS HELD AS STOCK IN TRADE, THER E IS NO QUESTION OF DISALLOWING ANY REASONABLE AMOUNT ATTRIBUTABLE FOR EARNING EXEMPT INCOME. THUS , IT IS STATED IN THE MISCELLANEOUS APPLICATION THAT HAVING DIRECTED DELETION OF DISALLOWANCE U/S. 14A OF THE ACT, THE TRIBUNAL OUGHT NOT HAVE RESTRICTED THE DISALLOWANCE U/S. 14A OF THE ACT TO .2,35,755/ - . THEREFORE , IT IS CONTENDED THAT THIS IS MISTAKE APPARENT ON RECORD. 3. LD. DR SUBMITS THAT THERE IS NO MISTAKE APPARENT ON RECORD AND IN FACT THE TRIBUNAL ALLOWING THE APPEAL OF THE ASSESSEE DELETED THE ENTIRE DISALLOWANCE AS MADE BY THE ASSESSING OFFICER U/S. 14A OF THE ACT IN THE ASSESSMENT ORDER . 4. ON HEARIN G BOTH THE PARTIES AN D PERUSING THE ORDER OF THE TRIBUNAL WE FIND THAT THE GROUND RAISED BY THE ASSESSEE IN RESPECT OF THE DISALLOWANCE MADE U/S. 14A OF THE ACT BY THE ASSESSING OFFICER IN THE ASSESSMENT ORDER HAS BEEN ALLOWED AND DIRECTED TO DELETE THE DISALLOWANCE MADE IN THE ASSESSMENT ORDER. THE TRIBUNAL IN FACT ALLOWED GROUND NO.4 OF THE GROUNDS OF APPEAL OF THE ASSESSEE DELETING THE 3 M.A. NO.405/MUM/2017 M/S. MAANRAJ TRADING PVT. LTD., DISALLO WANCE MADE U/S. 14A OF THE ACT AND THE DISALLOWANCE HAS BEEN RESTRICTED ONLY TO THE SUOMOTO DISALLOWANCE AS CONSIDERED BY ASSESSEE IN ITS COMPUTATION OF INCOME . IN SUCH CIRCUMSTANCES , WE DO NOT SEE ANY MISTAKE APPARENT ON RECORD IN THE ORDER OF THE TRIBUNAL. 5. IN THE RESULT, MISCELLANEOUS APPLICATION FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 19 TH NOVEMBER , 2019 SD/ - SD/ - ( M. BALAGANESH) (C.N. PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI / DATED 19 / 11 / 2019 GIRIDHAR , S R. PS COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY// BY ORDER (ASSTT. REGISTRAR) ITAT, MUM