PAN INDIA NETWORK INFRAVEST PVT. LTD., MUMBAI V. DCIT, CC -7(1), MUMBAI

MA 406/MUM/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 5267 (ITAT-MUMBAI)
• Duration Of Justice: 3 month(s) 21 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 01-11-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 10-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHAUDHARY ARUN KUMAR SINGH
• Keywords: Rectification of order; Earning of tax free income; Rule 8D
• Section: 14A; 115JB; 201; 254(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY , JUDICIAL MEMBER AND SHR I MANOJ KUMAR AGGARWAL , ACCOUNTANT MEMBER M.A NO. 406/MUM./2019 ( ARISING OUT OF ITA NO . 2963 / MUM . / 201 8 ) ( ASSESSMENT YEAR : 201 4 - 15 ) PAN INDIA NETWORK INFRAVEST PVT. LTD. 135, CONTINENTAL BUILDING DR. ANNIE BESANT ROAD WORLI, MUMBAI 400 018 PAN AACCP2459H . APPELLANT V/S DY. COMMISSIONER OF INCOME TAX CENTRAL CIRCLE - 7(1), MUMBAI . RESPONDENT A SSESSEE BY : SHRI JAY BHANSALI REVENUE BY : SHRI CHAUDHARY ARUNKUMAR SINGH DATE OF HEARING 06 .09.2019 DATE OF ORDER 10.11.2019 O R D E R PER SAKTIJIT DEY, J.M. BY FILING THIS APPLICATION , PURPORTEDLY UNDER SECTION 254(2) OF THE INCOME - TAX ACT, 1961 (FOR SHORT 'THE ACT' ), ASSESSEE SEEKS RECTIFICATION OF MISTAKE IN ORDER DATED 17 TH MAY 2019, PASSED IN ITA NO.2962/MUM./2018 AND ITA NO.2963/MUM./2018, AND ORDER DATED 29 TH MAY 2019, IN ITA NO.3198/MUM./2018. 2 PAN INDIA NETWORK INFRAVEST PVT. LTD. 2. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. THE COMMON ISSUE INVOLVED IN ALL THESE APPEALS RELATED TO DISALLOWANCE OF EXPENDITURE UNDER SECTION 14A R/W RULE 8D, UNDER THE NORMAL PROVISIONS AS WELL AS SIMILAR ADJUSTMENT MADE WHILE COMPUTING BOOK PROFIT UNDER SECTI ON 115JB OF THE ACT. THE TRIBUNAL WHILE DECIDING THE APPEAL , THOUGH , UPHELD THE DECISION OF LEARNED COMMISSIONER (APPEALS) IN RESTRICTING THE DISALLOWANCE UNDER SECTION 14A R/W RULE 8D UNDER NORMAL PROVISIONS TO THE EXEMPT INCOME EARNED DURING THE YEAR, HO WEVER, ON THE ISSUE OF SIMILAR ADJUSTMENT MADE TO THE BOOK PROFIT UNDER SECTION 115JB OF THE ACT, THE TRIBUNAL , THOUGH , HELD THAT THE ASSESSING OFFICER CANNOT RESORT TO THE PROVISIONS OF SECTION 14A R/W RULE 8D, HOWEVER, DIRECTED THE ASSESSING O FFICER TO E XAMINE AND QUANTIFY THE EXPENDITURE INCURRED FOR ADJUSTMENT UNDER SECTION 115JB READ WITH EXPLANATION 1(F) OF THE ACT. WHILE DOING SO, THE TRIBUNAL REFERRED TO THE DECISION OF THE TRIBUNAL, SPECIAL BENCH, DELHI, IN CIT V/S VIREET INVESTMENTS PVT. LTD., [20 17] 82 TAXMANN.COM 415 (DEL. (SB). BY FILING THE PRESENT APPLICATION, THE ASSESSEE WANTS A SPECIFIC DIRECTION FROM THE TRIBUNAL TO THE ASSESSING OFFICER TO RESTRICT THE ADJUSTMENT UNDER SECTION 115JB OF THE ACT TO THE EXTENT OF EXEMPT INCOME EARNED BY THE ASSESSEE . IN OTHER WORDS, THE ASSESSEE WANTS THE TRIBUNAL TO PASS AN ORDER ACCORDING TO ITS OWN WILL. THUS, FROM THE AFORESAID FACTS, IT IS VERY MUCH CLEAR THAT THERE IS NO MISTAKE , FAR LESS , 3 PAN INDIA NETWORK INFRAVEST PVT. LTD. ANY MISTAKE APPARENT FROM RECORD IN THE ORDER OF THE TRIBUNAL. W HAT THE ASSESSEE WANTS IS A CERTAIN RELIEF FROM THE TRIBUNAL A CCORDING TO ITS LIKING. THIS, IN OUR VIEW, DOES NOT COME WITHIN THE EXPRESSION MISTAKE APPARENT ON THE FACE OF RECORD AS ENVISAGED UNDER SECTION 254(2) OF THE ACT. THEREFORE, THE APPLICATIONS FILED BY THE ASSESSEE BEING WHOLLY MISCONCEIVED DESERVE TO BE DISMISSED. ACCORDINGLY, WE DO SO. 3. IN THE RESULT, MISC. APPLICATIONS ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN C OURT ON 01.11.2019 SD/ - MANOJ KUMAR AGGARWAL ACCOUNTANT MEMBER SD/ - SAKTIJIT DEY JUDICIAL MEMBER MUMBAI, DATED: 01.11.2019 COPY OF THE ORDER FORWARDED TO : (1) THE ASSESSEE; (2) THE REVENUE; (3) THE CIT(A); (4) THE CIT, MUMBAI CITY CONCERNED; (5) THE DR, ITAT, MUMBAI; (6) GUARD FILE . TRUE COPY BY ORDER PRADEEP J. CHOWDHURY SR. PRIVATE SECRETARY ASSISTANT REGISTRAR ITAT, MUMBAI