ENSEMBLE HOLDINGS & FINANCE LTD, MUMBAI v. ITO RG 10(2)(3), MUMBAI

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI I BENCH BEFORE SHRI T.R.SOOD ACCOUNTANT MEMBER & SHRI VIJAY PAL RAO JUDICIAL MEMBER I.T.A.NO.1416/MUM/2010 A.Y 2006-07 EMSEMBLE HOLDINGS & FINANCE LTD. PIROJSHANAGAR EASTERN EXPRESS HIGHWAY VIKROLI EAST MUMBAI 400 079. PAN: AAACE 09000 G VS. THE INCOME TAX OFFICER RANGE 10 (2)(3) MUMBAI. (APPELLANT) (RESPONDENT) APPELLANT BY : MS. SONALEE GODBOLE. RESPONDENT BY : SHRI HEMANT LAL. O R D E R PER T.R.SOOD AM: IN THIS APPEAL VARIOUS GROUNDS HAVE BEEN RAISED BU T THE ONLY DISPUTE INVOLVED IS REGARDING CONFIRMATION OF DISAL LOWANCE U/S.14A. 2. BOTH THE PARTIES WERE HEARD. 3. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND AS A GREED BY BOTH THE PARTIES THAT THE ISSUE SHOULD BE REMANDED TO TH E FILE OF THE AO TO BE DECIDED IN THE LIGHT OF THE DECISION OF THE HON' BLE BOMBAY HIGH COURT IN THE CASE OF GODREJ & BOYCE MFG. CO.LTD. VS . DCIT [43 DTR 171] THEREFORE IN THE INTERESTS OF JUSTICE WE SE T ASIDE THE ORDER OF THE LD. CIT[A] AND REMIT THE MATTER BACK TO THE FILE OF THE AO TO DECIDE THE ISSUE IN THE LIGHT OF THE DECISION OF THE HON'BLE H IGH COURT IN THE CASE OF GODREJ & BOYCE MFG. CO.LTD. VS. DCIT [SUPRA]. HO WEVER AT THE SAME TIME THE HON'BLE HIGH COURT HAS FURTHER HELD T HAT RULE 8D IS NOT OF RETROSPECTIVE NATURE AND THEREFORE ONLY REASON ABLE DISALLOWANCE 2 CAN BE MADE. THEREFORE IN THE INTEREST OF JUSTICE WE SET ASIDE THE ORDER OF THE LD. CIT[A] AND REMIT THE MATTER BACK T O THE FILE OF THE AO FOR RE-EXAMINATION OF THE ISSUE IN THE LIGHT OF THE RECENT DECISION OF THE HON'BLE BOMBAY HIGH COURT IN THE CASE OF GODREJ & B OYCE. 4. IN THE RESULT APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 11 TH DAY OF FEBRUARY 2011. SD/- SD/- (VIJAY PAL RAO) (T.R.SOOD) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI: 11 TH FEBRUARY 2011. P/-*