Income Tax Appellate Tribunal - Mumbai
Multi Commodity Exchange Of (Ndia I) ... vs Deputy Commissioner Of Income Tax ... on 19 July, 2019
आयकर अपीलीय अधिकरण "D" न्यायपीठ मब
ुं ई में ।
IN THE INCOME TAX APPELLATE TRIBUNAL "D" BENCH, MUMBAI
श्री महावीर स हिं , न्याययक दस्य एविं श्री राजेश कुमार, लेखा दस्य के मक्ष ।
BEFORE SRI MAHAVIR SINGH, JM AND SRI RAJESH KUMAR, AM
विविि आिेदन. / MA No. 171/Mum/2018
( Arising in ITA No. 6690/Mum/2013 A.Y:2008-09)
विविि आिेदन. / MA No. 172/Mum/2018
( Arising in ITA No. 6691/Mum/2013 A.Y:2009-10)
Multi Commodity Exchange of (I) Ltd.
Exchange Square, CTS No. 255 Suren Rd,
...... (ApIlaaqaI- / Appellant)
Chakala, Mumbai -400 093
Vs.
Dy. Commissioner of Income Tax ,
Central Circle -46
...... (p`%yaqaaI- / Respondent)
Mumbai
स्थायी ले खा िं . / PAN NO. AADCM9239K
अपीलाथी की ओर े / Appellant by : Shri Jay Shah, DR
प्रत्यथी की ओर े / Respondent by : Shri Somnath W ajale, AR
न
ु वाई की तारीख / Date of hearing: 19.07.2019
घोषणा की तारीख / Date of pronouncement : 19.07.2019
AadoSa / O R D E R
महािीर स हुं , न्याययक दस्य/
PER MAHAVIR SINGH, JM:
By way of this Misc. Application, the assessee has raised the issue that there is a typographical mistake occurred in Para 4 of this order dated 07.04.2017, same is corrected as under: -
2|Page M A s N o . 1 7 1 & 1 7 2 / Mu m / 2 0 1 8 "4. As regards to the AY 2008-09 and 2009-10 are concerned, the AO as well as CIT(A) invoke the provision of section 14A of the Act read with Rule 8D (2) and made disallowance of Rs.
1,04,37,783/- and Rs. 1,47,06,408/- for AY 2008-09 and 2009-10 respectively. For this the CIT(A) observed in Para 9.5 is as under: -
"9.5 As far as the A.Yrs.2008-09 & 2009-10 are concerned, the Assessing Officer invoked the provisions of sub-section 2 of section 14, of the Act read with Rule 8D(2) correctly and accordingly computed the disallowance. For the assessment year 2008-09, the appellant requested for reasonable disallowance 1% and this plea of the appellant is misplaced in view of the Hon'ble Bombay High Court's decision in the case of Godrej Boyce Manufacturing Company Ltd. (supra). wherein it is categorically held that once sub-section (2) of section 14A is invoked, thereafter the disallowance will be as per the Rule 80(2) of 1.1. Rules, 1962 and the application of Rule 80 is w.e.f. A.Y.2008-09 and the disallowance on the basis of reasonable estimate can be adopted only in respect of assessment years prior to A.Y.2008-09. Therefore, the appellant's request to adopt the disallowance @ 1% is not possible since sub-section (2) of section 14A read with Rule 8D(2) of I.T. Rules, 1962 has been invoked for the A.Y.2008-09. The appellant does not disagree with the computation but its primary case is that the invocation of Rule 8D(2) is not necessary. The facts and circumstances of the case as narrated by the Assessing Officer in the assessment order and also as discussed in pan 9.2. 9.3 & 9.4 above requires computation of disallowance under Rule 80(2) of 1.1. Rules. 1962. Since the administrative expenses in the nature of salary, staff welfare. rent, travelling & conveyance, communication expenses are incurred for earning both exempt income as well as taxable income, computation of disallowance as per section 14A
3|Page M A s N o . 1 7 1 & 1 7 2 / Mu m / 2 0 1 8 of the Act read with Rule 80(2) is necessary. Accordingly, the disallowance of Rs.1,04,37,783/- and Rs.1,47,06,408/- for A.Yrs.2008-09 & 2009-10 respectively are hereby upheld."
The order dated 7th April 2017, is modified to this extent only.
2. In the result, the MA of the assessee is allowed.
Order pronounced in the open court on 19-07-2019.
Sd/- Sd/-
(राजेश कुमार / RAJESH KUMAR) (महावीर स हिं /MAHAVIR SINGH)
(लेखा दस्य / ACCOUNTANT MEMBER) (न्याययक दस्य/ JUDICIAL MEMBER)
मुिंबई, ददनािंक/ Mumbai, Dated: 19-07-2019 दीप रकार, ि.यनजी धिि / Sudip Sarkar, Sr.PS आदे श की प्रयिसलवप अग्रेविि/Copy of the Order forwarded to :
1. अपीलाथी / The Appellant
2. प्रत्यथी / The Respondent.
3. आयकर आयुक्त(अपील) / The CIT(A)
4. आयकर आयुक्त / CIT
5. ववभागीय प्रयतयनधि, आयकर अपीलीय अधिकरण, मिंब ु ई / DR, ITAT, Mumbai
6. गार्ड फाईल / Guard file.
आदे शान ार/ BY ORDER, त्यावपत प्रयत //True Copy// उप/ हायक पुंजीकार (Asstt. Registrar) आयकर अपीलीय अधिकरण, मुिंबई / ITAT, Mumbai