EUROTEX INDUSTRIES AND EXPORTS LTD, V. ADDL CIT RG 3(1),

MA 599/MUM/2011

• Counselvise Citation: [2012] 123 COUNSELVISE.COM (IT) 8832 (ITAT-MUMBAI)
• Duration Of Justice: 6 month(s) 11 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 04-07-2012
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: E
• Next Hearing Date: 29-06-2012
• Assessment Year: 2006-2007
• Appeal Filed On: 23-12-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Section: 14A; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI E BENCH MUMBAI BENCHES, MUMBAI BEFORE SHRI SAHRI B RAMAKOTAIAH, AM & SHRI VIJAY P AL RAO, JM MISCEPPALEOUS APPLICATION NO.599/MUM/2011 ARISING OUT OF ITA NO. 6124/MUM/2010 (ASST YEAR 2006-07) EUROTEX INDUSTRIES & EXPORT C/O SHANKARLAL JAIN & ASSOCIATES 12 ENGINEER BUILDING 262 PRINCES ST MUMBAI 2 VS THE ADDL COMMR OF INCOME TAX RANGE 3(1), MUMBAI (APPLICANT) (RESPONDENT) PAN NO. AAACE1569M ASSESSEE BY SHRI S L JAIN REVENUE BY SH A K NAYAK DT.OF HEARING 29 TH JUNE 2012 DT OF PRONOUNCEMENT 4 TH JULY 2012 PER VIJAY PAL RAO, JM THIS MISCELLANEOUS APPLICATION BY THE ASSESSEE IS D IRECTED AGAINST THE ORDER DATED 4/11/2011 OF THIS TRIBUNAL PASSED IN THE ASSE SSEE'S APPEAL IN ITA NO.6124/MUM/2010 FOR THE ASSESSMENT YEAR 2006 07. 2 ONE OF THE ISSUES RAISED IN THE APPEAL OF THE ASS ESSEE WAS REGARDING DISALLOWANCE OF EXPENDITURE AND INTEREST UNDER SECT ION 14 A OF INCOME TAX ACT WHICH WAS DISPOSED OF BY THIS TRIBUNAL BY REMITTING THE SAME TO THE RECORD OF THE ASSESSING OFFICER FOR DECIDING AFRESH IN THE LIGHT OF THE DECISION OF HONBLE JURISDICTIONAL HIGH COURT IN CASE OF GODREJ BOYCE M FG CO LTD VS DCIT REPORTED IN 328 ITR 81 BECAUSE RULE 8D IS NOT APPLICABLE FOR THE YE AR UNDER CONSIDERATION. EUROTEX INDUSTRIES & EXPORT MA 599/M/2011 2 3 NOW THE LEARNED A.R. OF THE ASSESSEE HAS SUBMITTE D THAT THE ISSUE OF DISALLOWANCE OF INTEREST UNDER SECTION 14A HAS BEEN CONSIDERED BY THIS TRIBUNAL IN ASSESSEE'S OWN CASE FOR THE EARLIER YEARS RIGHT FRO M 2000 01 TO 2005 06. THUS THE LEARNED A.R. HAS ADMITTED THAT THE ISSUE WITH REGAR D TO THE DISALLOWANCE OF INTEREST OUGHT TO HAVE BEEN DECIDED IN FAVOUR OF THE ASSESSE E BY FOLLOWING THE EARLIER ORDER OF THIS TRIBUNAL ON THE SAME ISSUE. 3.1 ON THE OTHER HAND, THE LEARNED DR HAS SUBMITTED THAT THIS TRIBUNAL HAS NOT DECIDED THE ISSUE ON MERITS BUT REMITTED THE SAME T O THE RECORD OF THE ASSESSING OFFICER; THEREFORE, THE ASSESSING OFFICER HAS TO CO NSIDER AND DECIDE THE ISSUE AS PER LAW. 4 AFTER CONSIDERING THE RIVAL SUBMISSIONS AS WELL A S RELEVANT MATERIAL ON RECORD, WE NOTE THAT THE APPEAL OF THE ASSESSEE WAS DECIDED EX-PARTE AS NONE HAS APPEARED ON BEHALF OF THE ASSESSEE AND THEREFORE, T HE EARLIER DECISION OF THIS TRIBUNAL IN ASSESSEE'S OWN CASE COULD NOT BE CONSID ERED WHILE DECIDING THE APPEAL OF THE ASSESSEE. SINCE THE DISALLOWANCE WAS MADE B Y THE AUTHORITIES BELOW BY APPLYING RULE 8D, WHICH IS HELD TO BE NOT APPLICABL E FOR THE YEAR UNDER CONSIDERATION IN VIEW OF THE DECISION OF HONBLE JU RISDICTIONAL HIGH COURT IN CASE OF GODREJ BOYCE MFG LTD (SUPRA); THEREFORE, THE MATTER WAS REMITTED TO THE RECORD OF THE ASSESSING OFFICER FOR DECIDING THE ISSUE AFRES H IN THE LIGHT OF DECISION OF HONBLE JURISDICTIONAL HIGH COURT. 4.1 IN THESE FACTS AND CIRCUMSTANCES , THE ASSESSIN G OFFICER HAS TO DECIDE THE ISSUE AFTER CONSIDERING THE EARLIER DECISION OF THI S TRIBUNAL AS WELL AS DECISION OF HONBLE JURISDICTIONAL HIGH COURT (SUPRA). ACCORDI NGLY, WE MODIFY THE IMPUGNED ORDER AND DIRECT THE ASSESSING OFFICER TO DECIDE TH E ISSUE AFTER CONSIDERING THE EUROTEX INDUSTRIES & EXPORT MA 599/M/2011 3 EARLIER ORDER OF THIS TRIBUNAL IN ASSESSEE'S OWN CA SE AS WELL AS THE DECISION OF HONBLE JURISDICTIONAL HIGH COURT IN CASE OF GODREJ BOYCE M FG LTD (SUPRA) 5 IN THE RESULT, THE MISCELLANEOUS APPLICATION OF T HE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 4 TH DAY OF JULY 2012. SD/- SD/- ( B RAMAKOTAIAH ) ACCOUNTANT MEMBER ( VIJAY PAL RAO ) JUDICIAL MEMBER PLACE: MUMBAI : DATED: 4 TH ,ULY 2012 RAJ* COPY FORWARDED TO: 1 APPELLANT 2 RESPONDENT 3 CIT 4 CIT(A) 5 DR /TRUE COPY/ BY ORDER DY /AR, ITAT, MUMBAI