Shri Shyam Sunder Dalmia, Kolkata v. Addl. CIT, Range - 31, Kolkata

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : KOLKATA (BEFORE HONBLE SRI B.R.MITTAL J. M. AND HONBLE SRI B.K.HALDAR A.M) I.T.A. NO. 1121/KOL/2009 A SSESSMENT YEAR -2006-07 SHRI SHYAM SUNDAR DALMIA -VS- ADDL. C OMMISSIONER OF IT RANGE-31 KOLKATA (APPELLANT) (RESPONDENT) APPELLANT BY : SR I A.K.GUPTA. RESPONDENT BY : SRI PIYUSH KOLHE. O R D E R PER SHRI B.R.MITTAL J.M. THE ASSESSEE HAS FILED THIS APPEAL AGAINST THE ORD ER OF THE LEARNED C.I.T(A) DATED 8 TH MAY 2009 DISPUTING THE CONFIRMATION OF DISALLOWANC E MADE BY AO U /S 14A OF THE INCOME TAX ACT BY APPLYING RULE 8D OF THE INCOME TA X RULES 1962. 2. AT THE TIME OF HEARING LEARNED A.R. SUBMITTED THAT THE AO AS WELL AS THE LEARNED C.I.T(A) HAVE APPLIED RULE 8D TO MAKE DISALLOWANCE S U /S 14A OF THE ACT. HE SUBMITTED THAT AS PER DECISION OF THE BOMBAY HIGH COURT IN THE CASE OF GODREJ & BOYCE MFG. CO. LTD. VS DCIT (328 ITR 81) RULE 8D IS PROSPECT IVE IN NATURE AND IS APPLICABLE FROM THE ASSESSMENT YEAR 2008-09. HE SUBMITTED THAT THE IS SUE BE RESTORED TO THE AO TO CONSIDER AS TO WHETHER ANY DISALLOWANCE IS REQUIRED TO BE M ADE U /S 14A OF THE ACT OR NOT. 3. LEARNED D.R. HAS NO OBJECTION TO ABOVE SUBMIS SIONS OF THE LEARNED A.R. 4. WE AGREE WITH THE LEARNED A.R. THAT RULE 8D IS APPLICABLE FROM THE ASSESSMENT YEAR 2008-09 AS PER DECISION OF THE HONBLE BOMBAY HIGH COURT IN THE CASE OF GODREJ & BOYCE MFG. CO. LTD. (SUPRA). WE ALSO OBSERVE THA T THE AO MADE DISALLOWANCES U /S 14A OF THE ACT BY APPLYING RULE 8D OF THE INCOME TAX RU LES AND THE LEARNED C.I.T(A) HAS ALSO CONFIRMED THE ACTION OF THE AO. THEREFORE WE SET ASIDE THE ORDERS OF THE AUTHORITIES BELOW ON THE ABOVE ISSUE AND RESTORE THE SAME TO THE FILE OF THE AO FOR HIS FRESH CONSIDERATION AFTER GIVING DUE OPPORTUNITY OF HEA RING TO THE ASSESSEE AND CONSIDERING SUCH EVIDENCES AS MAY BE PLACED BEFORE HIM. 5. IN THE RESULT THE APPEAL OF THE ASSESSEE IS A LLOWED FOR STATISTICAL PURPOSES. 2 ITA NO. 1121(KOL)/2009 ORDER PRONOUNCED IN OPEN COURT ON 23.12.2010 SD/- SD/- (B.K.HALDAR) (B.R.MITTAL) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 23.12.2010 COPY TO :- 1. ADDL. CIT RANGE-31 KOLKATA. 2. SHRI SHYAM SUNDAR DALMIA IDEAL PLAZA 11/1 SARAT B OSE ROAD 3 RD FLOOR KOL. 3. C.I.T.(A) KOLKATA. 4. C.I.T. KOLKATA. 5. D.R. ITAT KOLKATA. TRUE COPY BY ORDER BCD DY REGISTRAR I.T.AT. KOLKATA