PHARMA PRODCTIONS P.LTD, V. DCIT CEN CIR 31,

MA 421/MUM/2014

• Counselvise Citation: [2015] 124 COUNSELVISE.COM (IT) 2823 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 19 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 13-02-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2007-2008
• Appeal Filed On: 24-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: PALLAVI GUDKA
• Section: 14A

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, MUMBAI BEFORE HONBLE S/SHRI H.L. KARWA, PRESIDENT AND B. R.BASKARAN (AM) . . , . . , MISC.APPLICATION NO.421/MUM/2014 ARISING OUT OF I.T.A. NO.2481/MUM/2013 ( / ASSESSMENT YEAR :2007-08) M/S DHARMA PRODUCTIONS PVT. LTD., 29, JAINS ARCADE, 2 ND FLOOR, 14TH ROAD, KHAR (W), MUMBAI-400052 / VS. DY. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-31, AAYKAR BHAVAN, MUMBAI ( / APPLICANT) .. ( !' / RESPONDENT) ./ $% ./ PAN/GIRNO.: AAACD3889K & / APPELLANT BY : MS.PALLAVI GUDKA !' ' & /RESPONDENT BY : SHRI PAVAN KUMAR BIRLA ( ) ' * + / DATE OF HEARING : 13.2.2015 ,- ' * + /DATE OF PRONOUNCEMENT : 13.2.2015 / O R D E R PER B.R.BASKARAN, ACCOUNTANT MEMBER: THE ASSESSEE HAS FILED THIS MISC. APPLICATION POIN TING OUT THAT THE GROUND NO.2 RAISED BY THE ASSESSEE IN ASSESSMENT YE AR 2007-08 HAS NOT BEEN DISPOSED OF BY THE BENCH WHILE PASSING THE ORD ER ON 29.10.2014. 2. WE HEARD THE PARTIES AND PERUSED THE ORDER. WE NOTICE MERIT IN THE PRESENT PETITION FILED BY THE ASSESSEE AS WE NOTICE THAT THE TRIBUNAL HAS NOT DISPOSED OF THE GROUND NO.2 URGED BY THE ASSESS EE IN THE APPEAL FILED FOR ASSESSMENT YEAR 2007-08. 3. ACCORDINGLY, WE ALLOW MISC. APPLICATION FILED BY THE ASSESSEE. MA NO.421/M/2014 2 4. WITH THE CONSENT OF BOTH THE PARTIES, THE GROUND NO.2 URGED IN AY 2007-08 WAS TAKEN UP FOR HEARING. 5. THE GROUND NO.2 READS AS UNDER : ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE HONBLE CIT(A) ERRED IN CONFIRMING THE DISALLOWANCE MADE BY THE LD. AO OF RS.3,67,258/- U/S 14A READ WITH RULE 8D OF THE IT ACT AS AGAINST A DIVIDEND INCOME OF RS.3,66,382/-. THE APP ELLANT PRAYS THAT THE SAID DISALLOWANCE IS UNJUSTIFIED AND MAY PLEAS BE DELETED. 6. WE HEARD THE PARTIES ON THIS ISSUE AND PERUSED T HE RECORD. WE NOTICE THAT THE AO HAS COMPUTED THE DISALLOWANCE U/ S 14A OF THE ACT AGAINST THE DIVIDEND INCOME OF RS.3,66,382/- RECEIV ED BY THE ASSESSEE BY APPLICATION OF PROVISIONS OF RULE 8D OF THE IT RUL ES, 1962. THE PRESENT ASSESSMENT YEAR BEING ASSESSMENT YEAR 2007-08, THE PROVISIONS OF RULE 8D SHALL NOT BE APPLICABLE AS HELD BY THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF GODREJ BOYCE MFG. CO. LTD (328 ITR 8 1). IN THE ABOVE SAID DECISION, THE HONBLE JURISDICTIONAL HIGH COURT HAS HELD THAT FOR THE YEAR UNDER CONSIDERATION, THE DISALLOWANCE HAS TO BE COM PUTED IN A REASONABLE MANNER. HENCE, WE ARE OF THE VIEW THAT THIS ISSUE REQUIRES FRESH CONSIDERATION AT THE END OF THE AO. ACCORDINGLY, W E SET ASIDE THE ORDER OF LD.CIT(A) ON THIS ISSUE AND RESTORE THE SAME TO THE FILE OF THE AO WITH A DIRECTION TO COMPUTE THE DISALLOWANCE U/S 14A OF TH E ACT IN A REASONABLE MANNER AS HELD BY THE HONBLE BOMBAY HIGH COURT IN THE CASE OF GODREJ BOYCE MFG. CO. LTD (SUPRA). MA NO.421/M/2014 3 7. IN THE RESULT, THE MISC.APPLICATION FILED BY THE ASSESSEE IS ALLOWED AND GROUND NO.2 TAKEN IN APPEAL IS TREATED AS ALLOW ED FOR STATISTICAL PURPOSES. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 13 TH FEB, 2015. ,- ( . /0 1 2 13 TH FEB, 2015 - ' 3) 4 SD SD ( . . / H.L. KARWA) ( . . , / B.R. BASKARAN ) / PRESIDENT / ACCOUNTANT MEMBER / ( ) MUMBAI: 13 TH FEB,2014. . . ./ SRL , SR. PS ! ' / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. !' / THE RESPONDENT. 3. ( 8* ( ) / THE CIT(A)- CONCERNED 4. ( 8* / CIT CONCERNED 5. 6. 9: 3 !*; , + ; , / ( ) / DR, ITAT, MUMBAI CONCERNED 3 < ) / GUARD FILE. = ( / BY ORDER, TRUE COPY > $ (ASSTT. REGISTRAR) + ; , / ( ) /ITAT, MUMBAI