The Dcit Circle 2 1 2 Baroda v. M S Munjal Auto Industries Ltd Baroda

ITA 3313/AHD/2014 | 2011-2012
Pronouncement Date: 19-12-2017 | Result: Dismissed

Appeal Details

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RSA Number 331320514 RSA 2014
Assessee PAN xxxxxxxxxxx
Bench xxxxxxxxxxx
Appeal Number xxxxxxxxxxx
Duration Of Justice 3 year(s) 8 day(s)
Appellant xxxxxxxxxxx
Respondent xxxxxxxxxxx
Appeal Type Income Tax Appeal
Pronouncement Date 19-12-2017
Appeal Filed By Department
Tags No record found
Order Result Dismissed
Bench Allotted D
Tribunal Order Date 19-12-2017
Assessment Year 2011-2012
Appeal Filed On 11-12-2014
Judgment Text
Ita No 3313 Ahd 2014 Acit Vs Munjal Auto Industries Ltd Assessment Year 2011 12 Page 1 Of 2 In The Income Tax Appellate Tribunal Ahmedabad D Bench Ahmedabad Coram Pramod Kumar Am And S S Godara Jm Ita No 3313 Ahd 2014 Assessment Year 2011 12 Assistant Commissioner Of Income Tax Appellant Circle 2 1 2 Baroda Vs Munjal Auto Industries Ltd Respondent 187 Gidc Estate Waghodia Baroda 391760 Pan Aaacg 8588 L Appearances By Vk Singh For The Appellant Surendra Modiani For The Respondent Date Of Concluding The Hearing 18 12 2017 Date Of Pronouncing The Order 19 12 2017 O R D E R Per Pramod Kumar Am 1 By Way Of This Appeal The Appellant Assessing O Fficer Has Challenged Correctness Of The Order Dated 23 Rd September 2014 Passed By The Cit A Iii Baroda In The Matter In The Matter Of Assessment U Nder Section 143 3 Of The Income Tax Act 1961 For The Assessment Year 2011 12 2 Grievance Raised By The Appellant Is As Follows On The Facts And In The Circumstances Of The Case And In Law Ld Cit A Erred In Deleting The Addition To The Extent Of Rs 56 85 132 Made U S 14 A Read With Rule 8 D By Merely Accepting The Assessee S Submission And Without Considering The Facts Of The Case 3 Learned Representatives Fairly Agree That The Af Oresaid Issue Is Covered In Favour Of The Assessee By The Order Dated 28 11 20 16 Passed By The Coordinate Bench In Assessees Own Case For The Assessment Ye Ar 2009 10 Wherein The Tribunal Has Held As Under 12 We Find That The Submission Of The Assessee Be Fore The Cit A A Sum Of Rs 50 000 Has Been Disallowed By The Assessee Its Elf Suo Motu Has Remained Uncontroverted On A Broader Consideration We Also Note That The Investments Were Largely Made In The Earlier Years And Has Been Carry Forwarded In The Current Year With A Very Few Movem Ents Therein The Ita No 3313 Ahd 2014 Acit Vs Munjal Auto Industries Ltd Assessment Year 2011 12 Page 2 Of 2 Assessee Has Computed Disallowance Which Was Claime D To Be Sufficient By The Assessee Having Regard To The Facts And Circums Tances Of The Case Notwithstanding The Aforesaid Stand Of The Assessee On This Account The Ao Mechanically Applied Rule 8 D 2 Iii Without Examin Ing The Merits Of The Assessees Stand And Without Recording Any Satisfac Tion As To How The Disallowance Offered By The Assessee Is Incorrect H Aving Regard To Account Of The Assessee We Note That No Lack Of Satisfaction With Regard To The Correctness Of The Accounts Of The Assessee In Resp Ect Of Such Expenditure In Relation To The Exempt Income Has Been Recorded By The Ao As Contemplated Under Section 14 A 2 Of The Act We Are Of The Cons Idered View That Under The Circumstances Where The Revenue Has Failed To Reco Rd Dissatisfaction On The Correctness Of The Claim Of The Assessee With Respe Ct To Disallowance Offered It Is Not Open For It To Resort Rule 8 D 2 Iii In Terms Of It Rules 1962 We Find That In Terms Of Section 14 Aof The It Act R W Rule 8 D Of It Rules The Onus Is On The Ao To Show How The Assessees Claim Is Incor Rect A Bare Reading Of Section 14 A Of The Act Would Suggest That Its Ap Plicability Is Not Automatic It Is Hedged By Condition Prescribed Therein Section 14 A Inheres In It The Concept Of Reasonableness The Formidable Amount Of Expenditure Cannot Be Said To Be Attributable To Tax Free Income By Apply Ing A Straight Jacket Formula As Per Rule 8 D 2 Iii Of The It Rules Without Demo Nstrating Incorrectness In The Offer Of Disallowance Made By The Assessee Hen Ce We Are Disposed To Adjudicate The Issue In Favour Of The Assessee Thu S The Order Of Cit A On Disallowance Of Administrative And Managerial Expen Ses Stands Vacated 4 We See No Reasons To Take Any Other View Of The Matter Than The View So Taken By The Co Ordinate Bench Respectfully Follow Ing The Views So Taken By The Co Ordinate Bench Supra In Assessees Own Case For A Y 2009 10 Vide Ita Nos 1998 2044 Ahd 2012 The Issue Raised By The Assessing Of Ficer In This Appeal Is Dismissed 5 In The Result The Appeal Is Dismissed Pronounc Ed In The Open Court Today On The 19 Th Day Of December 2017 Sd Sd S S Godara Pramod Kum Ar Judicial Member Accountant Member Bt Ahmedabad The 19 Th Day Of December 2017 Copies To 1 The Appellant 2 The Respondent 3 Commissioner 4 Cit A 5 Departmental Representative 6 Guard File By Order True Copy Assistant Registrar Income Tax Appellate Tribunal Ahmedabad Benches Ahmedabad