R Jegathambal Virudhunagar v. Dcit Madurai

In The Income Tax Appellate Tribunal D B Ench Chennai Before Shri A Mohan Alankamony Accountant Member And Shri Duvvuru Rl Reddy Judicial Member I T A No 3091 Mds 2016 Assessment Year 2011 12 Smt R Jegathambal 443 Main Bazaar Virudhunagar 626 001 Vs The Dcit Corporate Circle 2 Madurai Pan Adepj 0074 A Appellant Respondent Appellant By Shri S Shanmugavel Fca Respondent By Smt S Vijayaprabha Jcit Date Of Hearing 05 12 2017 Date Of Pronouncement 15 12 2017 O R D E R Per A Mohan Alankamony Accountant Member This Appeal By The Assessee Is Directed Against The Order Passed By The Ld Commissioner Of Income Tax Appea Ls 1 Madurai Dated 24 08 2016 In Ita No 0113 2015 16 For The Assessment Year 2011 12 Passed U S 250 6 R W S 14 3 3 263 Of The Act 2 The Assessee Has Raised Several Grounds In His Appeal However The Crux Of The Issue Is That The Ld Cit A Has Erred In 2 Ita Nos 3091 Mds 2016 Partly Confirming The Order Of The Ld Ao By Sustain Ing The Disallowance U S 14 A Of The Act To The Extent Of Dividend Income Of Rs 46 950 3 The Brief Facts Of The Case Are That The Assess Ee Is An Individual Engaged In The Business Of Money Lending Business Filed Her Return Of Income For The Assessment Year 2011 1 2 On 29 09 2011 Admitting Total Income Of Rs 3 89 970 The Case Was Selected For Scrutiny And Assessment Was Completed U S 143 3 R W S 263 Of The Act On 21 08 2015 Wherein The Ld Ao Based On The Direction Of The Ld Cit Invoked The Provisions Of Section 14 A R W R 8 D Of The Rules Thereby Making Disallowance Of Rs 3 05 910 Because The Assessees Investments In Equity Shares Stood As On 31 03 2010 And 31 03 2011 Rs 6 11 81 91 0 And Rs 6 11 81 910 Respectively 4 On Appeal The Ld Cit A Placing Reliance In The Decision Of The Chennai Benches Of The Tribunal In The Case Jci T Vs Baskaran Reported In 152 Itd 844 Wherein It Was Held That In The Absence Of Dividend Income No Disallowance Should Be Made U S 14 A Of The Act Sustained The Disallowance Of Rs 46 950 Bein G The Amount Of 3 Ita Nos 3091 Mds 2016 Dividend Income Earned By The Assessee During The R Elevant Assessment Year 5 Before Us The Ld Ar Submitted That The Assessee Had Not Incurred Any Expenditure For Earning Exempt Income Which Was Not Considered By The Ld Ao While Invoking The Provisio N Of Section 14 A Of The Act It Was Therefore Pleaded That The Order Of The Ld Ao As Well As That Of The Ld Cit A Is Erroneous And Hence The Addition Sustained By The Ld Cit A May Be Deleted The Ld Dr On The Other Hand Relied On The Orders Of The Ld Cit A 6 We Have Heard The Rival Submissions And Careful Ly Perused The Materials Available On Record We Find Merit I N The Submissions Of The Ld Ar Provisions Of Section 14 A Of The Act Mandates The Ld Ao To Make A Finding As To Whether The Assessee Has Actually Incurred Any Expenditure Towards Earning Exempt Inc Ome During The Relevant Assessment Year In The Case Of The A Ssessee Such Finding Is Neither Made By The Ld Ao Nor By The Ld Cit A Moreover The Financial Statements Of The Assessee A Re Not Before Us To Probe Into The Matter Therefore We Are Of T He Considered View That The Matter Has To Be Remitted Back To The File Of Ld Ao For Fresh Consideration Accordingly The Appeal Of The Assessee Is 4 Ita Nos 3091 Mds 2016 Hereby Remitted Back To The File Of Ld Ao For De No Va Consideration With Further Direction To Take Note Of Our Observat Ions Made Herein Above While Passing The Order 7 In The Result The Appeal Of The Assessee Is All Owed For Statistical Purposes As Indicated Herein Above Order Pronounced On 15 Th December 2017 At Chennai Sd Sd Duvvuru Rl Reddy A Mohan Alankamony Judicial Member Accountant Member Chennai Dated 15 Th December 2017 Rsr Copy To 1 Appellant 2 Respondent 3 Cit A 4 Cit 5 0 1 Dr 6 0 Gf