DCIT, CC-II, Kolkata, Kolkata v. M/s. Sanwarmull Shroff, Kolkata

ITA 572/KOL/2011 | 2005-2006
Pronouncement Date: 12-07-2011

Appeal Details

RSA Number 57223514 RSA 2011
Assessee PAN AUMPS0881M
Bench Kolkata
Appeal Number ITA 572/KOL/2011
Duration Of Justice 3 month(s)
Appellant DCIT, CC-II, Kolkata, Kolkata
Respondent M/s. Sanwarmull Shroff, Kolkata
Appeal Type Income Tax Appeal
Pronouncement Date 12-07-2011
Appeal Filed By Department
Bench Allotted C
Tribunal Order Date 12-07-2011
Assessment Year 2005-2006
Appeal Filed On 12-04-2011
Judgment Text
C IN THE INCOME TAX APPELLATE TRIBUNAL BENCH- C CALCUTTA () BEFORE SHRI MAHAVIR SINGH JUDICIAL MEMBER. /AND . .. . ! ! ! !. .. . '# SHRI C.D. RAO ACCOUNTANT MEMBER . $ $ $ $ / ITA NOS. 572 & 573/ KOL/2011 %& '( / ASSESSMENT YEARS 2005-06 & 2006-07) DEPUTY COMMISSIONER OF INCOME-TAX CC-11 KOLKATA M/S. SANWARMULL SHROFF PAN: AUMPS 0881M (*+ / APPELLANT ) - % - - VERSUS -. (-.*+/ RESPONDENT ) *+ / 0 '/ FOR THE APPELLANT: / SHRI R.K.SAHA DR -.*+ / 0 ' / FOR THE RESPONDENT : / SHRI S.K.JANA AR '1 / ORDER . .. . ! ! ! !. .. . '# SHRI C.D.RAO ACCOUNTANT MEMBER.: REVENUE HAS FILED THESE TWO APPEALS AGAINST COMMON ORDER DATED 12-01-2011 OF THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) FOR TH E ASSESSMENT YEARS 2005-06 AND 2006-07 RESPECTIVELY. 2. IN BOTH THE APPEALS THE ISSUE INVOLVED IS RELA TING TO DELETION OF DISALLOWANCE OF INTEREST MADE U/S.14A OF THE I.T ACT61 READ WITH RULE 8D OF THE I.T RULES1962. 3. THE ASSESSEE INDIVIDUAL DERIVES HIS INCOME FROM SALARY HOUSE PROPERTY PROFIT AND GAINS OF BUSINESS CAPITAL GAINS AND OTHER SOURCES.. WHIL E DOING THE SCRUTINY ASSESSMENT U/S. 143(3) OF THE ACT THE ASSESSING OFFICER BY OBSERVING THAT TH E ASSESSEE IS HAVING AN EXEMPTED DIVIDEND INCOME THEREFORE HE DISALLOWED PROPORTIONATE INTE REST BY APPLYING RULE 8D OF THE I.T RULES1962. 4. ON APPEAL LEARNED COMMISSIONER OF INCOME-TAX (A PPEALS) HAS RESTRICTED THE DISALLOWANCE TO 1% OF THE EXEMPTED INCOME BY OBSERV ING THAT RULE-8D IS NOT APPLICABLE FOR THESE ASSESSMENT YEARS IN VIEW OF THE DECISION OF T HE HONBLE BOMBAY HIGH COURT IN THE CASE OF GODREJ & BOYCE MFG. CO. LTD VS. DCIT [(2010) 328 IT R 81 (BOM). HOWEVER KEEPING IN VIEW ITA NOS. 572 & 573 KOL 2011-C-CDR 2 OF DECISION OF THE JURISDICTIONAL ITAT IN THE CASE OF UNIVERSAL CABLES LTD VS. DCIT DATED 29- 04-2011 IN ITA NO.954/KOL/2010 FOR THE ASSESSMENT Y EAR 2006-07 .HE RESTRICTED THE DISALLOWANCE TO 1% OF THE EXEMPTED DIVIDEND INCOME. 5. AGGRIEVED NOW THE REVENUE IS IN APPEAL BEFORE U S 6. AT THE TIME OF HEARING BEFORE US THE LEARNED DEP ARTMENTAL REPRESENTATIVE HAS RELIED ON THE ORDER OF THE ASSESSING OFFICER. ON THE OTHER HAND THE LEARNED COUNSEL FOR THE ASSESSEE HAS RELIED ON THE ORDER OF THE LEARNED COMMISSIONER OF INCOME- TAX (APPEALS). HE FURTHER REITERATED THAT SINCE THE LEARNED COMMISSIONER OF INCOME-TAX(APPEAL S) HAS FOLLOWED THE HONBLE JURISDICTIONAL ITATS ORDER THE SAME MAY BE UPHELD. 7. AFTER HEARING THE RIVAL SUBMISSIONS AND ON CARE FUL PERUSAL OF THE MATERIAL AVAILABLE ON RECORD IT IS OBSERVED THAT THE LEARNED DEPARTMENT AL REPRESENTATIVE HAS RELIED ON THE ORDER OF THE ASSESSING OFFICER. HE COULD NOT BRING ANY MATERIAL CONTRARY TO THE OBSERVATIONS MADE BY THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS). THERE FORE WE FIND NO INFIRMITY IN THE ORDER OF THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) AN D CONFIRM THE SAME. 8. IN THE RESULT THE APPEALS OF THE REVENUE ARE DISMISSED. '1 #2' 3 2% 4 5 THIS ORDER IS PRONOUNCED IN OPEN COURT ON DT.12- 07-2011 SD/- SD/- ( ) (SHRI MAHAVIR SINGH JUDICIAL MEMBER) ( . .. . ! ! ! !. .. . ) '# '# '# '# ) (C.D. RAO) ACCOUNTANT MEMBER ) ( (( (!# !# !# !#) )) ) DATE: 12-07-2011 *PRADIP* 67 %89 : ITA NOS. 572 & 573 KOL 2011-C-CDR 3 '1 / -; <';'=- COPY OF THE ORDER FORWARDED TO : 1. *+ / THE APPELLANT : DCIT CC-II 18 RABINDRA SARANI KOL-1 2 -.*+ / THE RESPONDENT- SRI SANWARMULL SHROFF 4/1 RED CROSS PLACE KOL-700 001. 3. 1% / THE CIT 4. 1% ( )/ THE CIT(A) 5. >4 -% / DR KOLKATA BENCH 6. GUARD FILE . .; -/ TRUE COPY '1%2/ BY ORDER 9 /ASSTT REGISTRAR