M/s. Britt Worldwide India Pvt. Ltd., New Delhi v. ACIT, New Delhi

ITA 1381/DEL/2010 | 2006-2007
Pronouncement Date: 06-01-2011 | Result: Allowed

Appeal Details

RSA Number 138120114 RSA 2010
Assessee PAN AAACB6476C
Bench Delhi
Appeal Number ITA 1381/DEL/2010
Duration Of Justice 9 month(s) 7 day(s)
Appellant M/s. Britt Worldwide India Pvt. Ltd., New Delhi
Respondent ACIT, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 06-01-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 06-01-2011
Date Of Final Hearing 06-01-2011
Next Hearing Date 06-01-2011
Assessment Year 2006-2007
Appeal Filed On 30-03-2010
Judgment Text
ITA NO. 1381/DEL/2010 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A NEW DELHI BEFORE SHRI RAJPAL YADAV JUDICIAL MEMBER AND SHRI SHAMIM YAHYA ACCOUNTANT MEMBER I.T.A. NO. 1381/DEL/2010 A.Y. : 2006-07 M/S BRITT WORLDWIDE INDIA PVT. LTD. D-109/11 PHASE-1 OKHLA INDUSTRIAL AREA NEW DELHI 110 020 (PAN/GIR NO. : AAACB6476C) VS. ASSTT. COMMISSIONER OF INCOME TAX CIRCLE-3(1) NEW DELHI (APPELLANT ) (APPELLANT ) (APPELLANT ) (APPELLANT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) ASSEESSEE BY : DR. AJAI K. AREN ADVOCATE DEPARTMENT BY : MRS. ANUSHA KHURANA SR. D.R. ORDER ORDER ORDER ORDER PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) DATED 22/1/2 010 PERTAINING TO ASSESSMENT YEAR 2006-07. 2. THE ISSUE RAISED IS THAT LD. COMMISSIONER OF INCOM E TAX (APPEALS) ERRED IN DISALLOWING THE EXPENDITURE U/S 14A. 3. IN THIS CASE ASSESSING OFFICER NOTED THAT THE A SSESSEE COMPANY HAS RECEIVED DIVIDEND INCOME OF ` 15 29 943/- WHICH WAS CLAIMED AS EXEMPT INCOME. ASSESSING OFFICER WAS OF THE OPINI ON THAT EARNING OF THIS EXEMPT INCOME INVOLVED MANAGEMENT/ESTABLISHMENT EXPENSES AND OTHER OFFICE EXPENSES BY THE ASSESSEE. HENCE HE PROCEEDED TO ITA NO. 1381/DEL/2010 2 DISALLOW PROPORTIONATE EXPENSES U/S 14A OF THE IT A CT ATTRIBUTABLE TO EARNING DIVIDEND INCOME EXEMPT FROM TAX. ACCORDING LY HE PROCEEDED TO DISALLOW A SUM OF ` 364712/- AS RELATE D TO EARNING OF EXEMPT INCOME. 4. UPON ASSESSEES APPEAL LD. COMMISSIONER OF INCOME TAX (APPEALS) REFERRED THE ITAT DECISION IN THE CASE OF ITO VS. DAGA CAPITAL MANAGEMENT (P) LTD. 119 TTJ 289. SHE OBSERVED THAT A S PER THE ASSESSEES CALCULATION DISALLOWANCE U/S RULE 8D COM ES TO ` 2 58 071/-. HENCE SHE DIRECTED THE ASSESSING OFFICER TO VERIF Y THE SAME AND ACCORDINGLY MODIFY THE FIGURE OF DISALLOWANCE U/S 14A. 5. AGAINST THIS ORDER THE ASSESSEE IS IN APPEAL BEF ORE US. 6. WE HAVE HEARD BOTH THE COUNSEL AND PERUSED THE R ECORDS. WE FIND THAT HONBLE MUMBAI HIGH COURT IN THE CASE OF GODREJ BOYCE MFG. CO. LTD. VS. DCIT IN ITA NO. 626 OF 2010 234 CTR 1 H AS OVERRULED THE ITAT DECISION OF DAGA CAPITAL MANAGEMENT (SUPRA) AN D HELD THAT RULE 8D HAS BEEN NOTIFIED ON 24.3.2008 AND WILL BE APPLIC ABLE ONLY FROM ASSESSMENT YEAR 2008-09. HENCE EXPENDITURE REASON ABLE RELATED IN THIS REGARD IS TO BE DISALLOWED. BOTH THE COUNSEL F AIRLY AGREED TO THIS PROPOSITION. ACCORDINGLY FOLLOWING THE PRECEDENT AS ABOVE WE REMIT THIS ISSUE TO THE FILES OF THE ASSESSING OFFICER T O CONSIDER THE SAME ITA NO. 1381/DEL/2010 3 AFRESH. NEEDLESS TO ADD THAT THE ASSESSEE SHOULD BE GIVEN ADEQUATE OPPORTUNITY OF BEING HEARD. 7. IN THE RESULT APPEAL FILED BY THE ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 06/01/2011. SD/- SD/- [RAJPAL YADAV] [RAJPAL YADAV] [RAJPAL YADAV] [RAJPAL YADAV] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER DATE 06/01/2011 SRB COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: - -- - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR ITAT TRUE COPY BY ORDER DEPUTY REGISTRAR ITAT DELHI BENCHES