Ritz Credit Promotion Pvt. Ltd.(Since amalgamated with Sattva Developers Pvt. Ltd.), Kolkata v. DCIT, C ircle- 10, Kolkata, Kolkata

ITA 799/KOL/2010 | 2007-2008
Pronouncement Date: 01-11-2011

Appeal Details

RSA Number 79923514 RSA 2010
Assessee PAN AABCR3521K
Bench Kolkata
Appeal Number ITA 799/KOL/2010
Duration Of Justice 1 year(s) 6 month(s) 9 day(s)
Appellant Ritz Credit Promotion Pvt. Ltd.(Since amalgamated with Sattva Developers Pvt. Ltd.), Kolkata
Respondent DCIT, C ircle- 10, Kolkata, Kolkata
Appeal Type Income Tax Appeal
Pronouncement Date 01-11-2011
Appeal Filed By Assessee
Bench Allotted A
Tribunal Order Date 01-11-2011
Date Of Final Hearing 28-06-2011
Next Hearing Date 28-06-2011
Assessment Year 2007-2008
Appeal Filed On 22-04-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL BEN CH A KOLKATA () BEFORE SHRI MAHAVIR SINGH JUDICIAL MEMBER. /AND . .. . ! ! ! !. .. . '# SHRI C.D.RAO ACCOUNTANT MEMBER $ $ $ $ / ITA NO . 799/KOL/2010 %& '(/ ASSESSMENT YEAR : 2007-08 (*+ / APPELLANT ) RITZ CREDIT PROMOTION (P) LTD. KOLKATA (PAN : AABCR 3521 K) - % - - VERSUS - . (-.*+/ RESPONDENT ) D.C.I.T. CIRCLE-10 KOLKATA *+ / 0 '/ FOR THE APPELLANT: SHRI SUBASH AGARWAL -.*+ / 0 '/ FOR THE RESPONDENT: SHRI S.K.ROY 1%2 / !# /DATE OF HEARING : 01.11.2011. 3' / !# /DATE OF PRONOUNCEMENT : 01.11.2011 '4 / ORDER ( (( ( . .. . ! ! ! !. .. . ) )) ) '# PER SHRI C.D.RAO AM THIS APPEAL IS FILED BY ASSESSEE AGAINST THE ORDER DATED 27.01.2010 OF THE LD. CIT(A)-XII KOLKATA PERTAINING TO A.YR.2007-08. 2. THE ONLY ISSUE RAISED BY ASSESSEE IS RELATING TO DISALLOWANCE OF RS.6 21 932/- U/S 14A OF THE IT ACT. 3. THE BRIEF FACTS OF THE CASE ARE THAT ASSESSING OFFICER HAS DISALLOWED AN AMOUNT OF RS.6 21 932/- BY APPLYING RULE 8D OF IT RULES AN D PROVISION OF SECTION 14A OF THE IT ACT. 3.1. ON APPEAL LD. CIT(A) HAS UPHELD THE ACTION OF ASSESSING OFFICER. 3.2. AGGRIEVED BY THIS ASSESSEE IS IN APPEAL BEFOR E US. 4. THE LD.COUNSEL APPEARING ON BEHALF OF ASSESSEE HAS SUBMITTED THAT AS PER THE DECISION OF THE HONBLE BOMBAY HIGH COURT IN THE CA SE OF GODREJ AND BOYCE MFG. CO. LTD. VS DCIT 328 ITR 81 (BOM) RULE 8D IS NOT AP PLICABLE FOR THE ASSESSMENT 2 YEAR INVOLVED IN THIS APPEAL. THEREFORE HE REQUEST ED TO SET ASIDE THE MATTER TO THE FILE OF THE AO TO RECONSIDER THE ISSUE BASED ON THE FACT S AND CIRCUMSTANCES OF THE CASE. 5. ON THE OTHER HAND THE LD. DR APPEARING ON B EHALF OF THE REVENUE RELIED ON THE ORDERS OF THE REVENUE AUTHORITIES. 6. AFTER HEARING THE RIVAL SUBMISSIONS AND ON CA REFUL PERUSAL OF THE MATERIALS AVAILABLE ON RECORD KEEPING IN VIEW OF THE FACT THA T AS PER THE DECISION OF THE HONBLE BOMBAY HIGH COURT IN THE CASE OF GODREJ AND BOYCE M FG. PVT. LTD. (SUPRA) RELIED UPON BY THE LD. COUNSEL FOR THE ASSESSEE RULE 8D I S NOT APPLICABLE IN THE ASSESSMENT YEAR UNDER CONSIDERATION. THE DECISION OF THE HONB LE ITAT (SPL.BENCH) MUMBAI IN THE CASE OF M/S. DAGA CAPITAL LTD. AS RELIED BY THE REVENUE AUTHORITIES IS ALSO NOT APPLICABLE TO THE FACTS OF THE PRESENT CASE. THE HO NBLE TRIBUNAL HAS BEEN TAKING A CONSISTENT VIEW OF SUSTAINING THE DISALLOWANCE U/S 14A AT 1% OF THE DIVIDEND INCOME. ACCORDINGLY WE DIRECT THE AO TO DISALLOW 1% OF THE DIVIDEND INCOME AS EXPENDITURE RELEVANT TO EARNING OF DIVIDEND INCOME. WE ORDER AC CORDINGLY. 7. IN THE RESULT THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 01.11.2011. SD/- SD/- MAHAVIR SINGH JUDICIAL MEMBER . .. . ! ! ! !. .. . '# '# '# '# C.D.RAO ACCOUNTANT MEMBER. ( (( (!# !# !# !#) )) ) DATE: 01.11.2011. '4 / -5 6'5'7- COPY OF THE ORDER FORWARDED TO: 1. RITZ CREDIT PROMOTION PRIVATE LTD. 41 NETAJI SUBH AS ROAD (4 TH FLOOR ROOM NO.404) KOLKATA-700001. 2 THE D.C.I.T. CIRCLE-10 KOLKATA. 3. THE CIT 4. THE CIT(A)-XII KOLKATA. 5. DR KOLKATA BENCHES KOLKATA .5 -/ TRUE COPY '4%1/ BY ORDER DEPUTY /ASST. REGISTRAR ITAT KOLKATA BENCHES R.G.(.P.S.) 3