SAPPHIRE FOODS INDIA LIMITED,MUMBAI V. DCIT, CIRCLE 3(3)(1), MUMBAI

MA 22/MUM/2025

AI Insights

The case involves Sapphire Foods India Limited, which filed a miscellaneous application (MA No. 22/Mum/2025) to correct a typographic error in a previous tribunal order concerning the assessment year 2022-23. The error pertained to the amount of disallowance under section 14A read with Rule 8D of the Income Tax Act, which was incorrectly stated as Rs.16,38,269 instead of the correct amount of Rs.1,63,826. The tribunal acknowledged the mistake and corrected the figures in the order.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 669007 (ITAT-MUMBAI)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 23-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIRABHADRA MAHAJAN
• Assessee Lawyers: AARTI SATHE
• Keywords: Earning of tax free income; Rule 8D
• Section: 14A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, MUMBAI BEFORE SMT. BEENA PILLAI (JUDICIAL MEMBER) MA No. 22/Mum/2025 (Arising out of ITA 3579/Mum/2024) Assessment Year: 2022-23 Sapphire Foods India Limited 7th Floor, A Wing, Prism Tower, Link Road, Mindspace, Goregaon West, Maharashtra-400062 PAN:AANCS5595A Vs. DCIT, Circle 3(3)(1) Income Tax Department, Circle 3(3)(1), Room 609, 6th Floor, Aaykar Bhavan, Maharishi Road, Mumbai- 400020 (Appellant) (Respondent) Appellant by Ms. Aarti Sathe Respondent by Shri Virabhadra Mahajan, SR. AR Date of Hearing 20.06.2025 Date of Pronouncement 23.06.2025 ORDER Per: Smt. Beena Pillai, J.M.: The present MA petition is filed by the assessee seeking certain typographic error that has crept in the order passed by this Tribunal in the above assessee, vide order dated 13/01/2015. 2 MA No. 22/Mum/2025 (Arising out of ITA 3579/Mum/2024) A.Y. 2022-23 Sapphire Foods India Limited 2. The Ld.AR submitted that, certain amount mentioned in para 2.2 and para 5 of the said order at page 3 and page 14 is to be rectify. She submitted that, the Ld.AO made addition u/s.14A r.w Rule 8D at Rs.1,63,826/-. This Tribunal while mentioning the said figure inadvertently mentioned as Rs.16,38,269/- in para 2.2 and para 5 of the order. 3. On verification of the submissions from the record it is noted that the above mistake deserves to be corrected. Henceforth para 2.2 & 5 of the order dated 13/01/2025 shall be read as under : “……………. 2.2 The assessee was called upon to furnish detailed working of the annual average of the investments during the financial year relevant to assessment year under consideration as envisaged in Rule 8D, vide notice dated 26/02/2024. In response to the same, the assessee filed all details as called for vide submission dated 29/02/2024. The Ld.AO from the details furnished noted that, the annual average of the monthly averages of the opening and closing balances of the value of investments came to be Rs.1,63,82,604/-. He thus proposed to add Rs.1,63,826/- in the hands of the assessee u/s.14A Rule 8D being 1% of Rs.1,63,82,604/-. The assessee was thus called upon to furnish submissions in respect of the proposed addition. …………….. 5. The sole issue contested by the assessee in the present appeal pertain to the disallowance made under section 14A r.w. Rule 8D amounting to Rs.1,63,826/-. The for the year under consideration, the assessee had not earned any exempt income from the investment made in the subsidiary company by the name, Gamma Pizzakraft (Overseas) Pvt.Ltd. In the present facts of the case, the Ld.AO computed disallowance under Rule 8D(2)(ii). Ld.AR vehemently submitted that though assessee maintains mix funds and all the funds are in the common hotch potch and that, difference between the interest free funds and interest bearing funds cannot be established, the assessee had sufficient surplus funds in order to make investments. She also 3 MA No. 22/Mum/2025 (Arising out of ITA 3579/Mum/2024) A.Y. 2022-23 Sapphire Foods India Limited placed reliance on various decisions in support of this contention as referred to herein above.” Accordingly present miscellaneous petition filed by the assessee stands allowed. Order pronounced in the open court on 23/06/2025 Sd/- (BEENA PILLAI) Judicial Member Mumbai: Dated: 23/06/2025 Poonam Mirashi, Stenographer Copy of the order forwarded to: (1)The Appellant (2) The Respondent (3) The CIT (4) The CIT (Appeals) (5) The DR, I.T.A.T. True Copy By order (Asstt. Registrar) ITAT, Mumbai "