BARODA INDUSTRIES PVT.LTD., MUMBAI v. THE INCOME TAX OFFICER,WARD-3(1)(2), MUMBAI

ITA 6721/MUM/2008 | 2004-2005
Pronouncement Date: 03-12-2010 | Result: Allowed

Appeal Details

RSA Number 672119914 RSA 2008
Assessee PAN AAACB2428A
Bench Mumbai
Appeal Number ITA 6721/MUM/2008
Duration Of Justice 2 year(s) 12 day(s)
Appellant BARODA INDUSTRIES PVT.LTD., MUMBAI
Respondent THE INCOME TAX OFFICER,WARD-3(1)(2), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 03-12-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted B
Tribunal Order Date 03-12-2010
Date Of Final Hearing 30-11-2010
Next Hearing Date 30-11-2010
Assessment Year 2004-2005
Appeal Filed On 21-11-2008
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI B BENCH BEFORE SHRI N.V.VASUDEVAN JUDICIAL MEMBER & SHRI T.R.SOOD ACCOUNTANT MEMBER I.T.A.NO.6721/MUM/2008 A.Y 2004-05 BARODA INDUSTRIES PVT. LTD. BAJAJ BHAVAN 2 ND FLOOR JAMNALAL BAJAJ MARG 226 NARIMAN POINT MUMBAI 400 021. PAN: AAACB 2428 A VS. THE INCOME TAX OFFICER WARD 3(1)(2) MUMBAI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI PRASHANT SHAH. RESPONDENT BY : SHRI HARI GOVIND SINGH. O R D E R PER T.R.SOOD AM: IN THIS APPEAL THE ASSESSEE HAS RAISED THE FOLLOW ING GROUNDS: 1.1 ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW THE LEARNED COMMISSIONER OF INCOME TAX [APPEALS] [(CIT[ A]) ERRED IN CONFIRMING THE DISALLOWANCE MADE BY THE ASSESSING O FFICER FOR A SUM OF ` `` ` .75 818 BY INVOKING THE PROVISIONS OF SECTION 14A O F THE ACT. 1.2 ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW THE LEARNED CIT[A] ERRED IN CONFIRMING THE DISALLOWANCE OF EXPENDITURE MADE BY THE LEARNED ASSESSING OFFICER ON PROPORTIONATE BASIS WITHOUT APPRECIATING THE SUBMIS SIONS OF THE APPELLANT. IT IS SUBMITTED THAT THE DISALLOWANCE MA DE IS NEITHER JUSTIFIED NOR REASONABLE. 2. AFTER HEARING BOTH THE PARTIES WE FIND THAT DUR ING ASSESSMENT PROCEEDINGS IT WAS NOTICED THAT THE ASSESSEES INCO ME INCLUDED SOME DIVIDEND INCOME WHICH WAS CLAIMED EXEMPT U/S.10(34) . BECAUSE OF THIS AO INVOKED THE PROVISIONS OF SECTION 14A AND DISALLOWED SOME OF THE EXPENDITURE BY APPLYING THE FOLLOWING FORMULA 2 THE EXPENDITURE OF ` `` ` .1 35 960/- IS BEING APPORTIONED AS UNDER:- EXEMPTED INCOME X EXPENDITURE 1 13 44 955 X 1 35 960 TOTAL INCOME 2 03 44 212 = ` `` ` /85.919 3. ON APPEAL THE ADDITION HAS BEEN CONFIRMED BY TH E LD. CIT[A]. 4. BOTH THE PARTIES WERE HEARD. 5. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND AS A GREED BY BOTH THE PARTIES THAT THE ISSUE SHOULD BE REMANDED TO TH E FILE OF THE AO TO BE DECIDED IN THE LIGHT OF THE DECISION OF THE HON' BLE BOMBAY HIGH COURT IN THE CASE OF GODREJ & BOYCE MFG. CO. LTD. V S. DCIT [43 DTR 171]. THEREFORE IN THE INTERESTS OF JUSTICE WE SE T ASIDE THE ORDER OF THE LD. CIT[A] AND REMIT THE MATTER BACK TO THE FIL E OF THE AO TO DECIDE THE ISSUE IN THE LIGHT OF THE DECISION OF THE HON'B LE HIGH COURT IN THE CASE OF GODREJ & BOYCE MFG. CO.LTD. VS. DCIT [SUPRA ]. 6. IN THE RESULT APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 3 RD DAY OF DECEMBER 2010. SD/- SD/- (N.V.VASUDEVAN) (T.R.SOOD) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI: 3 RD DECEMBER 2010. P/-* 3