RARE ENTERPRISES, PUNE v. ADDL CIT RG 12(1), MUMBAI

ITA 1911/MUM/2009 | 2004-2005
Pronouncement Date: 20-12-2010 | Result: Allowed

Appeal Details

RSA Number 191119914 RSA 2009
Bench Mumbai
Appeal Number ITA 1911/MUM/2009
Duration Of Justice 1 year(s) 8 month(s) 24 day(s)
Appellant RARE ENTERPRISES, PUNE
Respondent ADDL CIT RG 12(1), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 20-12-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted D
Tribunal Order Date 20-12-2010
Date Of Final Hearing 25-10-2010
Next Hearing Date 25-10-2010
Assessment Year 2004-2005
Appeal Filed On 26-03-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES D MUMBAI BEFORE SHRI R.S.SYAL AM AND SHRI VIJAY PAL RAO JM ITA NO.1911/MUM/2009 : ASST.YEAR 2004-2005 M/S.RARE ENTERPRISES 105 SIR VITHALDAS CHAMBERS 16 MUMBAI SAMACHAR MARG FORT MUMBAI 400 023. PA NO.AAEFR8176J. VS. THE ADDL.COMMISSIONER OF INCOME-TAX RANGE 12(1) MUMBAI (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI R.ASHOKAN RESPONDENT BY : SHRI JITENDRA YADAV O R D E R PER R.S.SYAL AM : THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDER PASSED BY THE COMMISSIONER OF INCOME-TAX (APPEALS) ON 09.02.2009 IN RELATION TO THE ASSESSMENT YEAR 2004-2005. 2. THE ONLY ISSUE IN THIS APPEAL IS AGAINST THE CON FIRMATION OF DISALLOWANCE MADE BY THE ASSESSING OFFICER U/S.14A. THE ASSESSEE IS ENGAGED IN TRADING IN SHARES AND DEBENTURES AND VENTURE CAPITAL CONTRIBUT IONS. THE A.O. COMPUTED THE DISALLOWANCE U/S.14A AT RS.20 64 825. WHEN THE MATT ER CAME UP BEFORE THE LEARNED CIT(A) HE DIRECTED THE ASSESSING OFFICER TO COMPUT E THE DISALLOWANCE U/S.14A AS PER RULE 8D AGAINST WHICH THE ASSESSEE IS IN APPEA L BEFORE US. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE RELEVANT MATERIAL ON RECORD. IT IS NOTED THAT THE QUESTION OF MAKING DIS ALLOWANCE U/S 14A IS NO MORE RES INTEGRA IN VIEW OF THE RECENT JUDGMENT DATED 12.08.2010 OF THE HONBLE BOMBAY HIGH COURT IN GODREJ& BOYCE LIMITED VS. ACIT HOLDING THAT THE PROVISIONS OF SECTION 14A ARE APPLICABLE IN CIRCUMSTANCES AS ARE PREVAILING PRESENTLY AND THE DISALLOWANCE HAS TO BE WORKED OUT BY THE AO ON SOME `REASONABLE BASIS AND NOT RULE 8D. UNDER SUCH CIRCUMSTANCES WE SET ASIDE THE IMPUGNED ORDER AND RESTORE ITA NO.1911/MUM/2009 M/S.RARE ENTERPRISES. 2 THE MATTER TO THE FILE OF THE AO FOR DECIDING THE Q UANTUM OF DISALLOWANCE IF ANY AS PER THE AFORE NOTED JUDGMENT AFTER ALLOWING A REA SONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 4. IN THE RESULT THE APPEAL IS ALLOWED FOR STATIST ICAL PURPOSES. ORDER PRONOUNCED ON THIS 20 TH DAY OF DECEMBER 2010. SD/- SD/- ( VIJAY PAL RAO ) ( R.S.SYAL ) JUDICIAL MEMBER ACC OUNTANT MEMBER MUMBAI : 20 TH DECEMBER 2010. DEVDAS* COPY TO : 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT CONCERNED 4. THE CIT(A) - XII MUMBAI. 5. THE DR/ITAT MUMBAI. 6. GUARD FILE. TRUE COPY. BY ORDER ASSISTANT REGISTRAR ITAT MUMBAI.