Indian Chronicle Ltd.,, Ahmedabad v. The Dy.CIT, Circle-4,, Ahmedabad

ITA 2486/AHD/2014 | 2011-2012
Pronouncement Date: 21-11-2017 | Result: Partly Allowed

Appeal Details

RSA Number 248620514 RSA 2014
Assessee PAN AAACI0793H
Bench Ahmedabad
Appeal Number ITA 2486/AHD/2014
Duration Of Justice 3 year(s) 2 month(s) 13 day(s)
Appellant Indian Chronicle Ltd.,, Ahmedabad
Respondent The Dy.CIT, Circle-4,, Ahmedabad
Appeal Type Income Tax Appeal
Pronouncement Date 21-11-2017
Appeal Filed By Assessee
Tags 2486
Order Result Partly Allowed
Bench Allotted C
Tribunal Order Date 21-11-2017
Date Of Final Hearing 27-09-2017
Next Hearing Date 27-09-2017
First Hearing Date 27-09-2017
Assessment Year 2011-2012
Appeal Filed On 08-09-2014
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH AHMEDABAD BEFORE SHRI N.K. BILLAIYA ACCOUNTANT MEMBER AND SHRI S. S. GODARA JUDICIAL MEMBER ITA NO. 2486/AHD/2014 (ASSESSMENT YEAR: 2011-12) INDIAN CHRONICLE LTD. GUJARAT SAMACHAR BHAVAN KHANPUR AHMEDABAD - 380001 APPELLANT VS. DCIT CIRCLE-4 AHMEDABAD RESPONDENT PAN: AAACI 0793 H /BY ASSESSEE : P. M. MEHTA AR /BY REVENUE : PRASOON KABRA SR. D.R. /DATE OF HEARING : 20.11.2017 /DATE OF PRONOUNCEMENT : 21.11.2017 ORDER PER S. S. GODARA JUDICIAL MEMBER THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2011-12 ARISES AGAINST THE CIT(A)-VIII AHMEDABADS ORDER DATED 30.07.2014 PA SSED IN CASE NO. CIT(A)(A)- VIII/DCIT/CIR.4/389/13-14 CONFIRMING DISALLOWANCE/ AUDITING AMOUNTS OF RS.5 31 308/- AND RS.3 27 470/- U/S.14A R.W.R 8D AN D THAT PERTAINING TO BUSINESS EXPENDITURE RESPECTIVELY IN PROCEEDINGS U/S.143(3) OF THE ACT. ITA NO. 2486/AHD/14 [INDIAN CHRONICLE LTD. VS. DCIT ] A.Y. 2011-2012 - 2 - HEARD BOTH THE PARTIES. CASE FILE PERUSED 2. THE ASSESSEES FIRST SUBSTANTIVE GRIEVANCE SEEKS TO PLEA SECTION 14A R.W.R. 8D DISALLOWANCE PERTAINING TO ITS EXEMPT INCOME IN THE NATURE OF DIVIDEND AMOUNTING TO RS.1 45 69 186/-. THERE IS NO DISPUTE THAT THE ASSESSING OFFICER REJECTED ITS EXPLANATION INTER ALIA PLEADING NOT TO HAVE BORNE ANY EXPENDITURE PERTAINING TO ABOVE EXEMPT INCOME SINCE HAVING CONT INUED WITH INVESTMENT ALREADY MADE IN PRECEDING ASSESSMENT YEARS. ITS CASE THEREF ORE WAS THAT THE IMPUGNED ASSESSMENT YEAR DID NOT WARRANT SUCH A DISALLOWANCE . THE ASSESSING OFFICER FRAMED ASSESSMENT IN QUESTION ON 29.01.2014 BY INVOKING SE CTION 14A R.W.R. 8D OF THE INCOME TAX RULES 1962 TO DISALLOW THE AMOUNT IN QU ESTION OF RS.5 66 896/-. THE CIT(A) CONFIRMS THE SAME. 3. LD. COUNSEL REPRESENTATIVE VEHEMENTLY CONTEND TH AT THE ASSESSEE IS HAVING SUFFICIENT INTEREST FREE FUNDS AS PER ITS SHARE CAP ITAL ALONGWITH RESERVES AND SURPLUS IN THE RELEVANT PREVIOUS YEAR. HE THEREFORE SEEKS T O PLACE RELIANCE UPON THIS TRIBUNAL CO-ORDINATE BENCHS ORDER IN ITA NO.2647/AHD/2012 D ECIDED ON 07.02.2014 RESTRICTING AN IDENTICAL DISALLOWANCE OF RS.1 00 00 0/- ONLY IN ASSESSMENT YEAR 2009- 10. WE FIND NO MERIT IN THE INSTANT CONTENTION AS T HE DISPUTE HERE BEFORE US IS QUA CORRECTNESS OF ADMINISTRATIVE EXPENDITURE DISALLOWA NCE UNDER RULE 8D(2)(III) AND NOT THAT OF DIRECT OR INDIRECT PROPORTIONATE INTERE ST EXPENDITURE. THERE IS NO QUARREL THAT RULE 8D IS VERY MUCH APPLICABLE AS WE ARE DEAL ING WITH ASSESSMENT YEAR 2011- 12 I.E. WELL POST ASSESSMENT YEAR 2008-09. WE THERE FORE CONCUR WITH BOTH THE LOWER AUTHORITIES CONCLUSION MAKING THE IMPUGNED D ISALLOWANCE. THE ASSESSEES SUBSTANTIVE GRIEVANCE IS ACCORDINGLY REJECTED. 4. THE ASSESSEE LATER SUBSTANTIVE GRIEVANCE CHALLEN GES CORRECTNESS OF DISALLOWANCE OF ADMINISTRATIVE/MANAGERIAL EXPENDITU RE OF RS.5 31 308/- MADE IN ASSESSMENT ORDER AS AFFIRMED IN LOWER APPELLATE PRO CEEDINGS. THE ASSESSEE HAD SOUGHT TO ADJUST THE ABOVE INTEREST AGAINST ITS INC OME DERIVED FROM FIXED DEPOSITS ON THE GROUND THAT THE SAME PERTAINED TO ITS OVERDR AFT HEAD. IT HAS COME ON RECORD ITA NO. 2486/AHD/14 [INDIAN CHRONICLE LTD. VS. DCIT ] A.Y. 2011-2012 - 3 - THAT THE ASSESSEE HAS NOT CARRIED OUT ANY BUSINESS IN THE IMPUGNED ASSESSMENT YEAR AS WELL AS IN PRECEDING TWO ASSESSMENT YEARS. WE NO TICE THAT THE CIT(A) HAS DELETED AN IDENTICAL HEAD ON DISALLOWANCE IN HIS OR DER DATED 22.05.2013 IN ASSESSMENT YEAR 2010-11. THE SAME APPEARS TO HAVE A TTAINED FINALITY. SO IS THE CASE IN ASSESSMENT YEAR 2009-10 WHEREIN ABOVE CO-ORDINAT E BENCH (SUPRA) HAS ACCEPTED ASSESSEES IDENTICAL CONTENTION ON THE GROUND THAT SECTION 14A DISALLOWANCE HEREINABOVE INVOLVING IDENTICAL INTEREST EXPENDITUR E TOOK CARE OF THE INSTANT HEAD AS WELL. MR. KABRA FAILS TO DISPUTE ALL THESE DEVELOPM ENTS IN THE INTERVENING TIME PERIOD. WE THEREFORE ACCEPT ASSESSEES INSTANT LATE R SUBSTANTIVE GRIEVANCE TO DELETE THE IMPUGNED DISALLOWANCE OF RS.3 27 470/-. 5. THIS ASSESSEES APPEAL IS PARTLY ALLOWED. [PRONOUNCED IN THE OPEN COURT ON THIS THE 21 ST DAY OF NOVEMBER 2017.] SD/- SD/- ( N. K. BILLAIYA ) ( S. S. GODARA) ACCOUNTANT MEMBER JUDICIAL M EMBER AHMEDABAD: DATED 21/11/2017 PRITI YADAV SR.PS / COPY OF ORDER FORWARDED TO:- / REVENUE 2 / ASSESSEE ! / CONCERNED CIT 4 !- / CIT (A) ( )*+ --. . /0 / DR ITAT AHMEDABAD 1 +23 45 / GUARD FILE. BY ORDER / . // . /0 TRUE COPY