ITD CEMENTATION INDIA LIMITED , MUMBAI V. ASSISTANT COMMISSIONER OF INCOME TAX 14 (2) (1) , MUMBAI

MA 782/MUM/2017

• Counselvise Citation: [2018] 124 COUNSELVISE.COM (IT) 6625 (ITAT-MUMBAI)
• Duration Of Justice: 7 month(s) 20 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 30-05-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: I
• Assessment Year: 2011-2012
• Appeal Filed On: 10-10-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M V RAJGURU
• Section: 14A; 2

Judgement Text

, , , , INCOME-TAX APPELLATE TRIBUNAL IBENCH M UMBAI , , BEFORE S/SH. RAJENDRA,ACCOUNTANT MEMBER & RAVISH SOOD, JUDICIAL MEMBER MA NO.782/MUM/2017 (ARISING OUT OF ./I.T.A./5398/MUM/2015, /ASSESSMENT YEAR: 2011-12) M/S. ITD CEMENTATION INDIA LTD. NATIONAL PLASTIC BUILDING A-SUBHASH ROAD, PARANJAPE B SCHEME VILE PARLE (E),MUMBAI-400 057 PAN:AAACT 1426 A VS. ACIT, -14(2)(1) MUMBAI. ( /APPELLANT ) ( / RESPONDENT ) REVENUE BY: SHRI M.V. RAJGURU -DR ASSESSEE BY: SHRI VIJAY MEHTA -AR / DATE OF HEARING: 06/04/2018 / DATE OF PRONOUNCEMENT: 30/05/2018 /ORDER , / PER RAJENDRA, AM - VIDE ITS APPLICATION,DATED 10/10/2017,THE ASSESSEE HAS STATED THAT THERE WERE MISTAKES IN THE ORDER OF THE TRIBUNAL,DTD.23/08/2017,THAT SAME WERE TO BE RECTIFIED AS PER SECTION 254(2) OF THE ACT,THAT WHILE DECIDING THE ISSUE OF DISALLOWAN CE U/S.14A OF THE ACT,THE FIRST APPELLATE AUTHORITY(FAA)GAVE PART RELIEF TO THE ASSESSEE,THAT MATTER TRAVELLED UP TO THE TRIBUNAL,THAT REFERRING TO THE ORDER OF THE TRIBUNAL FOR THE EARL IER AY.,THE TRIBUNAL SENT BACK THE ISSUE OF 14A DISALLOWANCE TO THE FILE OF THE AO FOR FRESH AD JUDICATION,THAT IN THE EARLIER YEAR THE TRIBUNAL HAD ALLOWED THE APPEAL OF THE ASSESSEE FOR 14A DISALLOWANCE AS FAR AS COMPUTATION UNDER NORMAL PROVISIONS WERE CONCERNED,THAT IN THE EARLIER YEAR THE ASSESSEE HAD RAISED ADDITIONAL GROUND WITH REGARD TO 14A DISALLOWANCE T O BE COMPUTED UNDER MAT PROVISIONS, THAT THE TRIBUNAL HAD RESTORED BACK MAT COMPUTATION ISSUE TO THE FILE OF THE AO,THAT DURING THE YEAR UNDER APPEAL MAIN ISSUE WAS DISALLOWANCE M ADE U/S.14A OF THE ACT UNDER THE NORMAL PROVISIONS. 2. DURING THE COURSE OF HEARING BEFORE US,THE AUTHORIS ED REPRESENTATIVE(AR)REITERATED THE ARGUMENTS RAISED BY THE ASSESSEE IN ITS APPLICATION .HE RELIED UPON THE ORDER OF THE TRIBUNAL FOR THE EARLIER YEAR.THE DEPARTMENTAL REPRESENTATIV E(DR)LEFT THE ISSUE TO THE DISCRETION OF THE BENCH. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL BEFORE US,WE FIND THAT THE EFFECTIVE GROUND OF APPEAL FOR THE YEAR UNDER CONSI DERATION WAS DISALLOWANCE MADE BY THE MA NO.782/MUM/17-ITD CEMENTATION INDIA LTD. 2 AO UNDER SECTION 14A OF THE ACT.IN OTHER WORDS THE CHALLENGE WAS MADE FOR THE COMPUTATION OF PROPORTIONATE DISALLOWANCE UNDER THE NORMAL PROV ISIONS OF THE ACT AND NOT UNDER THE MAT PROVISIONS.WHILE DECIDING THE APPEAL FOR THE EARLIE R YEAR (ITA/157/MUM/2015 DTD.4.1.2017) WE HAD HELD THAT NO DISALLOWANCE WAS TO BE MADE U/S . 14A OF THE ACT FOR THAT YEAR.WE HAD DIRECTED THE AO TO DECIDE THE ISSUE OF 14A DISALLOW ANCE AS PER THE MAT PROVISIONS.IN SHORT,NO DISALLOWANCE WAS TO BE MADE UNDER SECTION 14A OF THE ACT.BUT,WHILE DECIDING THE APPEAL FOR THE YEAR UNDER CONSIDERATION,WE HAVE RES TORED THE BACK THE ISSUE OF 14A DISALLOWANCE TO THE FILE OF THE ASSESSEE.THEREFORE, WE HOLD THAT EFFECTIVE GROUND OF APPEAL RAISED BY THE ASSESSEE HAS TO BE DECIDED IN ITS FAV OUR.WE DIRECT THE AO NOT TO MAKE ANY DISALLOWANCE U/S.14 A OF THE ACT FOLLOWING OUR ORDE R FOR THE EARLIER YEAR.WE WANT TO MENTION THAT WE ARE NOT DELIBERATING UPON THE ISSUE OF 14A DISALLOWANCE UNDER THE MAT PROVISIONS. AS A RESULT, MISCELLANEOUS APPLICATIONS FILED BY THE ASSESSEE STANDS ALLOWED. . ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH MAY , 2018. 30 , 201 8 SD/- SD/- ( /RAVISH SOOD) ( / RAJENDRA) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; /DATED : 30/05/2018 JV.SR.PS. / COPY OF THE ORDER FORWARDED TO : 1. APPELLANT / 2. RESPONDENT / 3. THE CONCERNED CIT(A)/ , 4. THE CONCERNED CIT / 5. DR I BENCH, ITAT, MUMBAI / , , . . 6. GUARD FILE/ //TRUE COPY// / BY ORDER, / DY./ASST. REGISTRAR , /ITAT, MUMBAI.