DCIT, Circle - 5, Kolkata, Kolkata v. M/s. HSIL Ltd., Kolkata

ITA 16/KOL/2011 | 2007-2008
Pronouncement Date: 07-02-2012

Appeal Details

RSA Number 1623514 RSA 2011
Assessee PAN AAACH7564H
Bench Kolkata
Appeal Number ITA 16/KOL/2011
Duration Of Justice 1 year(s) 1 month(s) 1 day(s)
Appellant DCIT, Circle - 5, Kolkata, Kolkata
Respondent M/s. HSIL Ltd., Kolkata
Appeal Type Income Tax Appeal
Pronouncement Date 07-02-2012
Appeal Filed By Department
Bench Allotted B
Tribunal Order Date 07-02-2012
Assessment Year 2007-2008
Appeal Filed On 05-01-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL BEN CH B KOLKATA () BEFORE SHRI MAHAVIR SINGH JUDICIAL MEMBER. /AND . .. .!' !'!' !'. .. . #$ SHRI C.D.RAO ACCOUNTANT MEMBER % % % % / ITA NO.16/KOL/2011 &' ()/ ASSESSMENT YEAR : 2007-08 (+ / APPELLANT ) D.C.I.T. CIRCLE-5 KOLKATA - & - - VERSUS - . (./+ / RESPONDENT ) M/S. HSIL LTD KOLKATA (PAN:AAACH 7564 H) + 0 1 #/ FOR THE APPELLANT: SHRI A.K.PRAMANIK ./+ 0 1 #/ FOR THE RESPONDENT: SHRI P.K.SINGHAI 2&3 0 '$ /DATE OF HEARING : 07.02.2012. 4( 0 '$ /DATE OF PRONOUNCEMENT : 07.02.2012. #5 / ORDER ( (( ( . .. .!' !'!' !'. .. . ) )) ) #$ PER SHRI C.D.RAO AM THE ABOVE APPEAL IS FILED BY REVENUE AGAINST THE OR DER DATED 29.10.2010 OF THE LD. CIT(A)-VI KOLKATA PERTAINING TO A.YR.2007-08. 2. THE ONLY ISSUE RAISED BY ASSESSEE IS RELATING T O DISALLOWANCE MADE U/S 14A OF THE IT ACT BY APPLYING RULE 8D OF IT RULES. 3. THE BRIEF FACTS OF THIS ISSUE ARE THAT WHILE DO ING THE SCRUTINY ASSESSMENT ASSESSING OFFICER HAS DISALLOWED AN AMOUNT OF RS.1 76 70 850/- BY APPLYING RULE 8D OF IT RULES AND PROVISIONS OF SECTION 14A OF THE IT ACT AGAINST THE EXEMPTED DIVIDEND INCOME OF RS.1 08 73 367/-. 2 3.1. ON APPEAL THE LD. CIT(A) BY THE DECISION OF T HE HONBLE BOMBAY HIGH COURT IN THE CASE OF GODREJ AND BOYCE MFG. PVT. LTD. 328 ITR 81 HAS RESTRICTED THE DISALLOWANCE OF RS.32 22 800/- BY OBSERVING THAT T HE ASSESSEE HIMSELF HAS DISALLOWED AN AMOUNT OF RS.32 22 800/- U/S 14A OF THE IT ACT. 3.2. AGGRIEVED BY THIS THE REVENUE IS IN APPEAL BEF ORE US. 4. AT THE TIME OF HEARING THE LD. DR APPEARING ON B EHALF OF THE REVENUE HAS RELIED ON THE ORDERS OF AO AND COULD NOT CONTRADICT THE FI NDINGS OF LD. CIT(A). 5. ON THE OTHER HAND THE LD. COUNSEL APPEARING ON BEHALF OF ASSESSEE HAS SUBMITTED THAT AO IS NOT JUSTIFIED IN DISALLOWING A N AMOUNT OF RS.1 76 70 850/- AS AGAINST RS.1 08 73 367/- BY APPLYING RULE 8D OF IT RULES AND PROVISION OF SECTION 14A OF THE IT ACT. HE FURTHER SUBMITTED THAT THIS T RIBUNAL IS CONSISTENTLY FOLLOWING DISALLOWANCE AT 1% OF THE DIVIDEND INCOME. HOWEVER IN THIS CASE THE ASSESSEE HIMSELF HAS OFFERED DISALLOWANCE OF RS.32 22 800/- U/S 14A OF THE IT ACT WHICH IS MORE THAN 1%. THEREFORE HE REQUESTED TO UPHELD THE ACTION OF THE LD. CIT(A). 6. AFTER HEARING THE RIVAL SUBMISSIONS AND ON CARE FUL PERUSAL OF MATERIALS AVAILABLE ON RECORD KEEPING IN VIEW OF THE FACT THA T SINCE THE ASSESSMENT YEAR INVOLVED IN THIS APPEAL IS RELATING TO A.YR. 2007-08 AS PER THE DECISION OF THE HONBLE BOMBAY HIGH COURT IN THE CASE OF GODREJ AND BOYCE MFG. PVT . LTD. (SUPRA) RELIED UPON BY THE LD. COUNSEL FOR THE ASSESSEE RULE 8D IS NOT APPLIC ABLE IN THE ASSESSMENT YEAR UNDER CONSIDERATION. THEREFORE WE CONFIRM THE ORDERS OF T HE LD. CIT(A) AND DISMISS THE APPEAL OF THE REVENUE. 3 7. IN THE RESULT THE APPEAL OF REVENUE IS DISMISSED . 6 7 89: $6; < ; => ORDER PRONOUNCED IN THE OPEN COURT ON 07.02.2012. SD/- SD/- MAHAVIR SINGH JUDICIAL MEMBER . .. .!' !'!' !'. .. . #$ #$ #$ #$ C.D.RAO ACCOUNTANT MEMBER. ( (( ('$ '$ '$ '$) )) ) DATE: 07.02.2012. #5 0 .8 ?#8(7- COPY OF THE ORDER FORWARDED TO: 1. M/S. HSIL LTD. 2 RED CROSS PLACE KOLKATA-700001. 2 THE D.C.I.T. CIRCLE-5 KOLKATA 3. THE CIT 4. THE CIT(A)-VI KOLKATA 5. DR KOLKATA BENCHES KOLKATA /8 ./ TRUE COPY #5&2/ BY ORDER DEPUTY /ASST. REGISTRAR ITAT KOLKATA BENCHES R.G.(.P.S.) 4