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Income Tax Appellate Tribunal - Chennai

Rane Engine Valves Ltd., Chennai vs Department Of Income Tax on 1 March, 2012

        IN THE INCOME TAX APPELLATE TRIBUNAL
                  'A' BENCH, CHENNAI


     BEFORE Dr. O.K.NARAYANAN, VICE-PRESIDENT
    AND SHRI CHALLA NAGENDRA PRASAD, JUDICIAL
                      MEMBER


                 ITA No.2081(Mds)/2011
                Assessment Year : 2007-08

The Assistant Commissioner       M/s. Rane Engine Valves
of Income-tax,             Vs.   Ltd., "Maithri",132-Cathedral
Company Circle V(3),             Road, Chennai-600 086.
Chennai.                         PAN AAACE1413G.
     (Appellant)                      (Respondent)


     Appellant by : Shri Shaji P Jacob, IRS, Commissioner of
                    Income-tax
   Respondent by : Shri Saroj Kumar Parida, Advocate


        Date of Hearing        : 1st March, 2012
        Date of Pronouncement : 1st March, 2012



                      ORDER

PER Dr.O.K.NARAYANAN, VICE-PRESIDENT:

This appeal filed by the Revenue relates to the assessment year 2007-08. The appeal is directed against the
-2- ITA No.2081 of 2011 order of the Commissioner of Income-tax(Appeals)-V at Chennai, passed on 30-9-2011 and arises out of the assessment completed under section 143(3) of the Income-tax Act, 1961.

2. The only ground raised by the Revenue in this appeal is that the Commissioner of Income-tax(Appeals) has erred in holding that the disallowance under section 14A of the Income-tax Act, 1961 cannot be worked out as per the provisions of Rule 8D of the Income-tax Rules, 1962, for the assessment year 2007-08. This issue has been decided by the Commissioner of Income-tax(Appeals), relying on the judgment of the Hon'ble Bombay High Court in the case of Godrej & Boyce Mfg. Co. Ltd. vs. DCIT, 328 ITR 81. The Commissioner of Income-tax(Appeals) is justified in holding that Rule 8D is not applicable in assessee's case, as the relevant assessment year is 2007-08.

3. In view of the above, this appeal filed by the Revenue is liable to be dismissed.

-3- ITA No.2081 of 2011

Order pronounced in the open Court at the time of hearing on Thursday, th 1st of March, 2012 at Chennai.

          Sd/-                                      Sd/-
(Challa Nagendra Prasad)                   (Dr. O.K.Narayanan)
   Judicial Member                             Vice-President



Chennai,
Dated the 1st March, 2012.
V.A.P.



              Copy to:       (1) Appellant
                             (2) Respondent
                             (3) CIT
                             (4) CIT(A)
                             (5) D.R.
                             (6) G.F.