Shreyas Morakhia Amp Family Assets P Ltd Mumbai v. Ito 7 2 3 Mumbai

In The Income Tax Appellate Tribunal E Bench Mumbai Before Shri Mahavir Singh Jm And Shri Rajesh Kumar Am I T A No 5680 Mum 201 5 Assessment Year 2 0 11 12 M S Shrevas Morakhia A Nd Family Assets Pvt Ltd Formerly Known As Shiva Shakti Properties Pvt Ltd 706 Raheja Journal Marg 214 Nariman Point Mumbai 400021 Vs Income Tax Officer 7 2 3 Aayakar Bhavan Maharshi Karve Marg Mumbai 400020 Appellant Respondent Pan Aafcs 8009 P Assessee By None Re Venue By Shri V Justin Date Of Hearing 1 3 12 2017 Date Of Pronouncement 15 12 20 17 O R D E R Per Rajesh Kumar Accountant Member This Is An Appeal Filed By The Assessee Challenging The Order Dated 30 11 2015 Passed By The Ld Cit A 14 Mumbai For The Assessment Year 2011 12 At The Outset We Would Like To Mention Here That Neither The Assessee Nor His Authorized Representative Appeared Before This Tribunal When The Appeal Was Called For Hearing Nor Any Application Seeking Adjournment Of The Hearing Was Received In The Office Of The Tribunal Despite Service Of Notice Ita 5680 Mum 201 5 2 Thr Ough Rpad Therefore We Proceed To Dispose Of The Appeal Of The Assessee Ex Parte On Merit After Hearing The Ld Dr 3 The Only Issue Raised By The Assessee In The Grounds Of Appeal As Against The Confirmation Of The Addition To The Tune Of Rs 52 59 2 95 By The Ld Cit A As Made By The Ao Under Section 14 A Of The Income Tax Act 1961 Read With Rule 8 D Of The Income Tax Rules 1962 4 Facts Of The Case Are That The Ao During The Course Of Assessment Proceedings Observed That The Assessee Has Di Sallowed A Sum Of Rs 1 15 612 Under Section 14 A Of The Act Whereas The Dividend Income Earned By The Assessee During The Year Rs 2 73 57 057 Which Was Claimed As Exempt Income Under Section 10 Of The Act The Assessee Was Asked To Produce The Detai Ls Of Working Of Disallowance Under Section 14 A Of The Act The Assessee Furnished Details Under Rule 8 D 2 Iii Calculating Disallowance At Rs 52 59 295 However The Ao Calculated The Disallowance At Rs 76 10 449 U R 8 D 2 Ii And Iii Which Was R Estricted To Rs 65 80 214 After Taking Into Account The Expenses Claimed By The Assessee As Well As Suo Motu Disallowance Of Rs 1 15 612 As Has Been Given In Para 4 3 Of The Assessment Order In The Appellate Proceedings The Ld Cit A Partly Allo Wed The Appeal Of The Assessee By Sustaining The Disallowance Under Rule 8 D 2 Ii I To Rs 52 59 295 In Respect Of Other Expenses Only By Relying On The Decision Of His Predecessor For The Assessment Year 2009 10 While Directing The Ao To Make Disallow Ance Of Interest By Taking The Net Interest Expenses Only Ita 5680 Mum 201 5 3 5 We Have Perused The Material Placed Before Us And Heard The Ld Dr We Find From The Record That The Assessee Has Filed A Copy Of Tribunal Order In Assessees Case For The Assessment Year 2008 0 9 In Ita No 776 M 2012 Dated 20 10 2015 Where In An Identical Issue On Identical Facts Has Been Decided In The Said Order Vide Para 7 It Has Been Observed That The Disallowance Should Be Worked Out On Proportionate Method Under Rule 8 D 2 Iii And De Termined Disallowance At Rs 35 120 Applying The Proportionate Method On The Total Income And Dividend Income Earned And Total Expenses In The Current Year The Only Difference In The Facts Are With Regard To The Quantum Of Amount Of Dividend Income Earned And The Quantum Of Expenses 6 Considering The Decision Of The Co Ordinate Bench Of The Tribunal And The Overall Expenses As Well As The Income And Total Income Of The Assessee We Are Of The View That It Would Be Fair And Reasonable If A Sum O F Rs 10 Lakhs Is Disallowed Under Rule 8 D 2 Iii Accordingly We Direct The Ao To Disallow A Sum Of Rs 10 Lakhs Under Rule 8 D 2 Iii Resultantly The Appeal Of The Assessee Is Partly Allowed 7 In The Result Appeal Filed By T He Assessee Partly Al Lowed O Rder Was Pronounced In The Open Court On 15th Dec 2017 S D Sd Mahavir Singh Rajesh Kumar Judici Al Member Accountant Member Mumbai Dated 15 12 2017 Srl Sr Ps Ita 5680 Mum 201 5 4 Copy Of The Order Forwarded To 1 The Appellant 2 The Respondent 3 The Cit A 4 Cit Concerned 5 Dr Itat Mumbai 6 Guard File By Order T Rue Copy Dy Asstt Registrar Itat Mumbai