M/s. Ankit India Ltd., Kolkata v. DCIT, Central Circle - XXI, Kolkata, Kolkata

ITSSA 13/KOL/2010 | 2002-2003
Pronouncement Date: 01-12-2010

Appeal Details

RSA Number 1323516 RSA 2010
Assessee PAN AADCA2518H
Bench Kolkata
Appeal Number ITSSA 13/KOL/2010
Duration Of Justice 2 month(s) 16 day(s)
Appellant M/s. Ankit India Ltd., Kolkata
Respondent DCIT, Central Circle - XXI, Kolkata, Kolkata
Appeal Type Income Tax (Search & Seizure) Appeal
Pronouncement Date 01-12-2010
Appeal Filed By Assessee
Bench Allotted A
Tribunal Order Date 01-12-2010
Assessment Year 2002-2003
Appeal Filed On 15-09-2010
Judgment Text
INCOME TAX APPELLATE TRIBUNAL BENCH A KOLKATA () BEFORE . . . . . . . . SHRI B.R.MITTAL JUDICIAL MEMBER ! ! ! ! /AND . .. .'# '#'# '#. .. . $% SHRI C.D. RAO ACCOUNTANT MEMBER !& !& !& !& / IT(SS)A NO. 13/KOL/10 : '( )* / ASSESSMENT YEAR : 2002-03 !& !& !& !& / IT(SS)A NO. 16/KOL/10 : '( )* / ASSESSMENT YEAR : 2005-06 !& !& !& !& / IT(SS)A NO. 17/KOL/10 : '( )* / ASSESSMENT YEAR : 2006-07 ( - / APPELLANT ) - ' - (/0 -/ RESPONDENT ) M/S. ANKIT INDIA LTD. - VERSUS - DCIT CENTRAL CIRCLE-XXI (PAN:AADCA 2518H ) KOLKATA - 1 2 $/ FOR THE APPELLANT : SHRI S. BANDYOPADHYAY /0 - 1 2 $ / FOR THE RESPONDENT : SHRI SUMAT SINHA $3 / ORDER . . . . . . . . PER SHRI B.R.MITTAL J.M . THESE THREE APPEALS ARE PREFERRED BY THE ASSESSEE A GAINST THE ORDERS OF THE C.I.T.(A) CENTRAL-II KOLKATA ALL DATED 31.05.2010 FOR THE ASSESSMENT YEARS 2002-03 2005-06 AND 2006-07 RESPECTIVELY. AS ALL THE APPEAL S PERTAIN TO ONE ASSESSEE THE SAME ARE DISPOSED OFF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2. IN ALL THE GROUNDS TAKEN BY THE ASSESSEE THERE IS ONLY ONE EFFECTIVE ISSUE WHICH IS COMMON IN ALL THE APPEALS. THE ISSUE IS RELATING TO THE DISALLOWANCE UNDER SECTION 14A OF THE INCOME-TAX ACT. 3. BRIEF FACTS OF THE ISSUE ARE THAT WHILE DOING TH E SCRUTINY ASSESSMENT THE AO BY APPLYING THE RULE 8D OF THE I.T.RULES DISALLOWED AN AMOUNT OF RS.6 36 229/- FOR THE ASSESSMENT YEAR 2002-03 RS.2 60 227/- FOR THE ASSE SSMENT YEAR 2005-06 AND RS.3 50 486/- FOR THE ASSESSMENT YEAR 2006-07. 2 4. ON APPEAL THE LD. CIT(A) HAS CONFIRMED THE ACTI ON OF THE AO FOR ALL THE ASSESSMENT YEARS BY APPLYING THE ITAT SPECIAL BENC H CASE IN RESPECT OF DAGA CAPITAL MANAGEMENT PVT. LTD. 5. AGGRIEVED BY THIS NOW THE ASSESSEE IS IN APPEAL S BEFORE US. 6. AT THE TIME OF HEARING THE LD. COUNSEL APPEARI NG ON BEHALF OF THE ASSESSEE HAS SUBMITTED THAT THE HONBLE BOMBAY HIGH COURT IN THE CASE OF GODREJ & BOYCE MANUFACTURING CO. LTD.-VS- DCIT IN IT APPEAL NO.626 OF 2010 AND WRIT PETITION NO.758 OF 2010 REPORTED IN 328 ITR 81(MUM) HAS REVE RSED THE JUDGMENT OF DAGA CAPITAL MANAGEMENT PVT. LTD. ON WHICH THE LD. CIT(A ) HAS PLACED RELIANCE. THEREFORE HE REQUESTED THAT THE ACTION OF THE REVE NUE IS NOT JUSTIFIABLE. 7. ON THE OTHER HAND THE LD. D.R. HEAVILY RELIED O N THE ORDERS OF THE REVENUE AUTHORITIES. 8. AFTER HEARING THE RIVAL SUBMISSIONS AND ON CAREF UL PERUSAL OF THE MATERIALS AVAILABLE ON RECORD KEEPING IN VIEW THE DECISION O F THE BOMBAY HIGH COURT IN THE CASE CITED ( SUPRA ) BY THE LD. COUNSEL WHEREIN THE HONBLE HIGH COUR T HAS HELD THAT THE PROVISIONS OF RULE 8D OF THE INCOME TAX RULES W HICH HAVE BEEN NOTIFIED WITH EFFECT FROM 24 MARCH 2008 SHALL APPLY WITH EFFECT F ROM ASSESSMENT YEAR 2008-09 AND THE ASSESSMENT YEARS INVOLVED IN THESE CASES ARE 20 02-03 2005-06 AND 2006-07 THE DECISION OF DAGA CAPITAL MANAGEMENT PVT. LTD. RELI ED ON BY THE LD. CIT(A) IS NOT APPLICABLE TO THE FACTS OF THE CASES. WE OBSERVE T HAT ONE OF THE MAIN ACTIVITY OF THE ASSESSEE IS TRADING AND INVESTMENT OF SHARES AND SE CURITIES. THEREFORE WE SET ASIDE THE 3 ORDERS OF THE REVENUE AUTHORITIES ON THIS ISSUE AND REMIT BACK TO THE FILE OF THE AO TO RE-DECIDE THE ISSUE OF DISALLOWANCE UNDER SECTION 1 4A OF THE ACT BASED ON THE FACTUAL POSITION OF THE INDIVIDUAL ASSESSMENT YEARS AND THE VARIOUS JUDICIAL DECISIONS ON THIS ISSUE AFTER GIVING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 9. IN THE RESULT THE APPEALS OF THE ASSESSEE ARE A LLOWED FOR STATISTICAL PURPOSES. 4 $3 5 6' 7 48 THIS ORDER IS PRONOUNCED IN THE COURT ON 01.12.20 10. SD/- SD/- . .. .'# '#'# '#. .. . $% C.D. RAO ACCOUNTANT MEMBER . . . . . . . . B.R.MITTAL JUDICIAL MEMBER ( (( (#% #% #% #%) )) ) DATE: 01.12.2010 MST(SR.P.S.) $3 1 /9 :$9);- COPY OF THE ORDER FORWARDED TO: 1. M/S. ANKIT INDIA LTD. 5/14A 5 TH FLOOR 234/3A A.J.C. BOSE ROAD KOLKATA 700 020. 2. DCIT CENTRAL CIRCLE-XXI KOLKATA 3. THE CIT(A) 4. THE CIT 5 . DR KOLKATA BENCHES KOLKATA 09 // TRUE COPY $3'6/ BY ORDER DEPUTY /ASST. REGISTRAR ITAT KOLKATA BENCHES .