WINDIA INFRASTRUCTURE FINANCE LTD, MUMBAI v. DCIT RG 1(3)(2), MUMBAI

ITA 5417/MUM/2015 | 2012-2013
Pronouncement Date: 23-10-2016

Appeal Details

RSA Number 541719914 RSA 2015
Assessee PAN AAACW1343B
Bench Mumbai
Appeal Number ITA 5417/MUM/2015
Duration Of Justice 10 month(s) 29 day(s)
Appellant WINDIA INFRASTRUCTURE FINANCE LTD, MUMBAI
Respondent DCIT RG 1(3)(2), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 23-10-2016
Appeal Filed By Assessee
Bench Allotted SMC
Tribunal Order Date 23-09-2016
Assessment Year 2012-2013
Appeal Filed On 24-11-2015
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH MUMBAI BEFORE SHRI R.C.SHARMA AM & SHRI AMARJIT SINGH JM ./ ITA NO. 5417 / MUM/20 1 5 ( / ASSESSMENT YEAR : 20 12 - 2013 ) M/S WI NDIA INFRASTRUCTURE FINANCE LTD. EMPIRE HOUSE 214 D.N.ROAD A.K.NAYAK MARG FORT MUMBAI - 400001 VS. DCIT - 1(3)(2) MUMBAI ./ ./ PAN/GIR NO. : A A ACW 1343 B ( / APPELLANT ) .. ( / RESPONDENT ) /A S SESSEE BY : SHRI VIJAY MEHTA /REVENUE BY : CAPT. PRADEEP ARYA / DATE OF HEARING : 21 /0 9 /2016 / DATE OF PRONOUNCEMENT 23/09 /2016 / O R D E R PER R.C.SHARMA (A.M) : TH IS IS AN APPEAL F ILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) MUMBAI FOR THE ASSESSMENT YEAR 20 12 - 2013 . 2. THE ONLY GRIEVANCE OF THE ASSESSEE RELATES TO DISALLOWANCE MADE U/S.14A OF THE I.T.ACT. 3. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PERUSED. FACTS IN BRIEF ARE THAT ASSESSEE IS ENGAGED IN BORROWING AND LENDING AND INVESTMENT IN SECURITIES. DURING THE YEAR ASSESSEE HAS RECEIVED TAX FREE DIVIDEND INCOME OF RS.70 87 815/ - . THE AO COMPUTED DISALLOWANCE U/S.14A READ WITH RULE 8D AT RS.46 81 151/ - UNDER RULE 8D(III ) . IT WAS CONTENDED BY LD. AR THAT DISALLOWANCE HAS ALSO BEEN MADE IN RESPECT OF ITA NO. 5417/15 2 SHARES HELD AS STOCK IN TRADE AS WELL AS INVESTMENT IN SUBSIDIARY/GROUP COMPANIES. AS PER LD. AR SHARES HELD AS STOCK IN TRADE SHOULD BE EXCLUDED FOR THE PURPOSE OF DISALLOWAN CE U/S.14A OF THE ACT. FOR THIS PURPOSE RELIANCE WAS PLACED ON THE FOLLOWING JUDICIAL PRONOUNCEMENTS : - I) CIT VS. INDIA ADVANTAGE SECURITIES ITA NO.1131/2013 DATED 17.3.2015 (BOMBAY HIGH COURT); II) CCI LTD. VS. JT.CIT 250 CTR 291 (KAR) III) HDFC BANK LTD . VS. DCIT 383 ITR 529 (BOM) IN SUPPORT OF THE PROPOSITION THAT NO DISALLOWANCE U/S.14A IS WARRANTED IN RESPECT OF INVESTMENT IN THE SUBSIDIARY/GROUP COMPANIES R ELIANCE WAS PLACED ON THE FOLLOWING DECISIONS : - I) CHEMINVEST LTD. V CIT [378 ITR 33 (DEL)/ 281 CTR 447 (DEL)] II) GARWARE WALL ROPES LIMITED V ADD L . CIT (ITA NO. 5408/MUM/2012) III) M/S JM FINANCIAL LIMITED V ADD!. CIT (ITA NO: 4521/MUM/2012) IV) CIT V ORIENTAL STRUCTURAL ENGINEERS PVT. LTD (DELHI HIGH COURT) V) M/S PROVOGUE INDIA LTD V. DCIT 8 (2) MUMBAI BEING ITA NO: 2155/MUM/2013 FOR AY. 2009 - 10 DATED 21.01.20 15; IT WAS ALSO CONTENDED BY LD. AR THAT NO DISALLOWANCE U/S.14A WAS WARRANTED IN RESPECT OF INVESTMENT WHICH DOES NOT EARN ANY EXEMPT INCOME AND FOR THIS PURPOSE RELIANCE WAS PLACED ON THE FOLLOWING DECISIONS : - I) A CB INDIA V ACIT [374 ITR 108 (DEL)] II) CIT V. INTERGLOBE ENTERPRISES LTD. (DELHI HIGH COURT) (COPY ENCLOSED) M/S SLYVEX CABLE CO. PVT. LTD. V DY.CIT BEING ITA NO: 8581/MUM/2011 FOR AY. 2008 - 09 DATED 24.02.2016 4. WE HAV E CONSIDERED RIVAL CONTENTIONS AND FOUND FROM THE RECORD THAT WHILE COMPUTING DISALLOWANCE UNDER RULE 8D(III) THE AO HAS NOT EX CLUDED INVESTMENT IN SHARES HELD AS STOCK IN TRADE INVESTMENT IN SUBSIDIARY/GROUP CONCERNS. THE AO HAS ALSO NOT EXCLUDED THE IN VESTMENT WHICH DO NOT EARN ANY TAX FREE INCOME. ITA NO. 5417/15 3 5. IN VIEW OF THE ABOVE JUDICIAL PRONOUNCEMENTS AS REFERRED ABOVE WE DIRECT THE AO TO EXCLUDE INVESTMENT MADE IN SHARES HELD AS STOCK IN TRADE INVESTMENT IN SUBSIDIARY/GROUP COMPANIES AND ALSO INVESTMENT W HICH DO NOT EARN ANY EXEMPT INCOME. WE DIRECT ACCORDINGLY. 6 . IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. O RDER PRONOUNCED IN THE OPEN COURT ON THIS 23/09 / 201 6 . S D/ - ( AMARJIT SINGH ) S D/ - ( R.C.SHARMA ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; DATED 23/09 /201 6 . . /PKM . / PS / COPY OF THE ORDER FORWARDED TO : / BY ORDER / ( ASSTT. REGISTRAR) / ITAT MUMBAI 1. / THE APPELLANT 2. / THE RESPO NDENT. 3. ( ) / THE CIT(A) MUMBAI. 4. / CIT 5. / DR ITAT MUMBAI 6. / GUARD FILE. //TRUE COPY//