DCIT, New Delhi v. M/s. Maharishi Ayurveda Products Ltd., New Delhi

ITA 137/DEL/2010 | 2004-2005
Pronouncement Date: 14-01-2011 | Result: Allowed

Appeal Details

RSA Number 13720114 RSA 2010
Bench Delhi
Appeal Number ITA 137/DEL/2010
Duration Of Justice 1 year(s) 3 day(s)
Appellant DCIT, New Delhi
Respondent M/s. Maharishi Ayurveda Products Ltd., New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 14-01-2011
Appeal Filed By Department
Order Result Allowed
Bench Allotted E
Tribunal Order Date 14-01-2011
Date Of Final Hearing 12-01-2011
Next Hearing Date 12-01-2011
Assessment Year 2004-2005
Appeal Filed On 11-01-2010
Judgment Text
I.T.A. NO. 137/DEL/10 1/3 IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH E NEW DELHI) BEFORE SHRI I.P. BANSAL JUDICIAL MEMBER AND SHRI A.K. GARODIA ACCOUNTANT MEMBER I.T.A. NO.137/DEL/2010 ASSESSMENT YEAR : 2004-05 DCIT MAHARISHI AYURVEDA PRODUCTS CIRCLE-6 (1) LTD. A-14 MOPHAN COOP INDL. NEW DELHI. V. ESTATE MATHURA ROAD N. DELHI. (APPELLANT) (RESPONDENT) PAN /GIR/NO. PAN /GIR/NO. PAN /GIR/NO. PAN /GIR/NO.AACCM AACCM AACCM AACCM- -- -5403 5403 5403 5403- -- -A AA A APPELLANT BY : SHRI K.RQAVICHANDARAN SR. DR. RESPONDENT BY : SHRI MANOJ ARORA C.A. ORDER PER A.K. GARODIA AM: THIS IS REVENUE'S APPEAL FILED AGAINST THE ORDER OF LD CIT(A)-V NEW DELHI DATED 22.10.2009 FOR ASSESSMENT YEAR 2004-05. 2. IT IS SUBMITTED BY THE LD DR OF THE REVENUE THAT T HE ONLY ONE ISSUE IS INVOLVED IN GROUND NO.1 & 2 AS PER WHICH THE GRIEVANCE OF THE REVENUE IS REGARDING DELETION OF ADDITION OF `.77 25 056/- OUT OF DISALLOWING OF THE INTEREST PAYMENT U/S 14A OF THE INC OME TAX ACT 1961. 3. IT IS SUBMITTED BY HIM THAT THIS ISSUE HAS TO GO BAC K TO ASSESSING OFFICER FOR A FRESH DECISION AS PER THE JUDGMENT OF HO N'BLE BOMBAY HIGH COURT IN THE CASE OF GODREJ BOYCE MFG. CO. LTD . 194 TAXMAN 203. LD AR OF THE ASSESSEE COULD NOT PERSUADE US TO TAKE A DIF FERENT OPINION. . I.T.A. NO.137/DEL/10 2/3 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND HAVE GONE TH ROUGH THE MATERIAL AVAILABLE ON RECORD AND THE JUDGMENT CITED BY THE LD AR OF THE ASSESSEE. THIS IS ADMITTED POSITION THAT AS PER THIS J UDGMENT OF HON'BLE BOMBAY HIGH COURT RENDERED IN THE CASE OF GO DREJ BOYCE MFG. CO. PVT. LTD. (SUPRA) RULE 8D IS NOT APPLICABLE IN THE PRESENT YEAR BECAUSE THIS RULE WAS INSERTED AFTERWARDS AND AS PER THIS JUDGMENT OF HON'BLE BOMBAY HIGH COURT THIS RULE IS PROSPECTIVE AN D NOT RETROSPECTIVE. AS PER THE JUDGMENT OF HON'BLE BOMBAY HIGH COURT CITED BY LD DR OF THE REVENUE DISALLOWANCE U/S 14A HAS TO B E MADE BY THE ASSESSING OFFICER ON A REASONABLE BASIS DURING THAT PERIOD WHEN RULE 8D IS NOT ON STATUTE BOOK. LD CIT(A) HAS DELETED THE D ISALLOWANCE ON THIS BASIS THAT INTEREST FREE FUND WAS AVAILABLE WITH TH E ASSESSEE WITHOUT GIVING A FINDING ABOUT NEXUS OF SUCH INTEREST FREE FUND WITH THE INVESTMENT IN SHARES. HENCE THIS ORDER CANNOT BE SUST AINED. WE THEREFORE SET ASIDE THE ORDER OF THE LD CIT(A) ON TH IS ISSUE AND RESTORE THE MATTER BACK TO THE FILE OF THE ASSESSING OFFICER F OR A FRESH DECISION IN THE LIGHT OF THIS JUDGMENT OF HON'BLE BOMBAY HIG H COURT RENDERED IN THE CASE OF GODREJ BOYCE MFG. CO. LTD. (SUPRA). IF AN Y JUDGMENT OF HON'BLE JURISDICTIONAL HIGH COURT IS AVAILABLE BY THI S TIME THEN OBVIOUSLY THE ASSESSING OFFICER HAS TO FOLLOW THAT JUDG MENT. THE ASSESSING OFFICER SHOULD PASS NECESSARY ORDER AS PER LAW AFT ER PROVIDING ADEQUATE OPPORTUNITY OF BEING HEARD TO TH E ASSESSEE. 8. IN THE RESULT THE APPEAL FILED BY THE REVENUE STA NDS ALLOWED FOR STATISTICAL PURPOSES. 9. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE 1 4 TH DAY LF JANUARY 2011. SD/- SD/- (I.P. BANSAL) (A.K. GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER DT. 14.1.2011. HMS . I.T.A. NO.137/DEL/10 3/3 COPY FORWARDED TO:- 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT (A)- NEW DELHI. 5. THE DR ITAT LOKNAYAK BHAWAN KHAN MARKET NEW DEL HI. TRUE COPY. BY ORDER (ITAT NEW DELHI).