Income Tax Appellate Tribunal - Ahmedabad
The Dcit, (Osd)-I, Circle-4,, ... vs M/S. Kargil Holdings Pvt. Ltd.,, ... on 30 January, 2018
IN THE INCOME TAX APPELLATE TRIBUNAL
AHMEDABAD "A" BENCH AHMEDABAD
BEFORE, SHRI S. S. GODARA, JUDICIAL MEMBER
AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER
ITA No. 1459/Ahd/2015
WITH
CO No. 177/Ahd/2015
(Assessment Year: 2011- 12)
Asst. Commissioner of Income Tax,
Circle 2(1)(2), 1st Floor, Navjivan Trust
Building, Ahmedabad-380 009 Appellant
Vs.
M/s. Kargil Holding Pvt. Ltd.,
Nirma House, Ashram Road,
Ahmedabad - 380 009 Respondent/Cross Objector
PAN: AAACK4645G
राज व क ओर से/By Revenue : Shri Dinesh Singh, Sr. D.R.
आवेदक क ओर से/By Assessee : Shri Himanshu Shah, A.R.
सन
ु वाई क तार ख/Date of Hearing : 29.01.2018
घोषणा क तार ख/Date of
Pronouncement : 30.01.2018
ORDER
PER S. S. GODARA, JUDICIAL MEMBER
This Revenue's appeal and assessee's cross objection for assessment year 2011-12 arise against the CIT(A)-2, Ahmedabad's order dated 02.03.2015 in case no. CIT(A)-2/DCIT (OSD)-1, Cir.4/189/2013-14, partly upholding Assessing Officer's action making Section 14A r.w. Rule 8D disallowance of ITA No. 1459/Ahd/15 with 177/Ahd/15 [M/s. Kargil Holding Pvt. Ltd.] A.Y. 2011-12 -2- Rs.20,91,588/- to the extent of Rs.1,24,000/- only pertaining to administrative expenditure @.5%, in proceedings u/s. 143(3) of the Income Tax Act, 1961; in short "the Act".
Heard both the parties. Case file perused.
2. We notice at the outset that the Revenue's sole substantive ground seeks to revive disallowance of interest expenditure amounting to Rs.19,67,223/- made by the Assessing Officer as deleted in lower appellate proceedings. Learned Departmental Representative fails to dispute that the net tax effect in the instant appeal is less than Rs.10 lacs. We find that the Central Board of Direct Taxes; hereafter the 'Board' has issued the circular no. 21/2015 dated 10.12.2015 clearly envisaging therein that department's pending appeals before the tribunal/high courts are to be withdrawn/not pressed as per the above stated circular. The same has been declared to be having retrospective effect in other words. We take into consideration the above stated Board's circular and dismiss the instant appeal accordingly. The Revenue's appeal ITA No.1459/Ahd/2015 is dismissed for involving low tax effect.
3. We advert to assessee's Cross Objection No.177/Ahd/2015 seeking to reverse both the lower authorities' action disallowing administrative expenditure of Rs.1,24,000/- under Rule 8D(2)(iii) of the Income Tax Rules as pertaining to the exempt income in question in the nature of dividend to the tune of Rs. 1,81,76,516/-. We notice that the CIT(A) has already entered into a detailed discussion that the assessee has incurred indirect administrative expenditure in reviewing its investments/maintaining activities of the stock holding activity in the relevant previous year. Learned counsel fails to dispute the fact that the above computation formula prescribed under Rule 8D of the Income Tax Rules is applicable from assessment year 2008-09 onwards. We therefore see no reason to interfere with the impugned administrative ITA No. 1459/Ahd/15 with 177/Ahd/15 [M/s. Kargil Holding Pvt. Ltd.] A.Y. 2011-12 -3- expenditure disallowance. The same stands confirmed. Assessee's cross objection fails accordingly.
4. The Revenue's appeal ITA No.1459/Ahd/2015 as well as assessee's Cross Objection i.e. C.O. No.177/Ahd/2015 are therefore dismissed.
[Pronounced in the open Court on this the 30th day of January, 2018.] Sd/- Sd/-
(PRADIP KUMAR KEDIA) (S. S. GODARA)
ACCOUNTANT MEMBER JUDICIAL MEMBER
Ahmedabad: Dated 30/01/2018
True Copy
S.K.SINHA
आदे श क त ल
प अ े
षत / Copy of Order Forwarded to:-
1. राज व / Revenue
2. आवेदक / Assessee
3. संबं धत आयकर आयु!त / Concerned CIT
4. आयकर आयु!त- अपील / CIT (A)
5. )वभागीय ,-त-न ध, आयकर अपील य अ धकरण, अहमदाबाद / DR, ITAT, Ahmedabad
6. गाड3 फाइल / Guard file.
By order/आदे श से, उप/सहायक पंजीकार आयकर अपील य अ धकरण, अहमदाबाद ।