Income Tax Appellate Tribunal - Mumbai
Bang Securities P.Ltd, Mumbai vs Dcit 2(1), Mumbai on 7 April, 2017
IN THE INCOME TAX APPELLATE TRIBUNAL "B" BENCH, MUMBAI
BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER
AND SHRI RAVISH SOOD, JUDICIAL MEMBER
ITA No.5835/M/2014 (2010-2011)
M/s. Bang Securities Pvt Ltd., फनाभ/ DCIT-2(1),
20, Sonawala Bldg, Fort, Aayakar Bhavan,
Vs.
Mumbai - 400 023. Mumbai.
स्थामी रेखा सं ./ PAN : AAACB2269D
(अऩीराथी /Appellant) .. (प्रत्मथी / Respondent)
अऩीराथी की ओय से / Appellant by : Ms. Dinkal Hariya
प्रत्मथी की ओय से/ Respondent by : Ms. Jotilakshmi Nayak, DR
सन
ु वाई की तायीख / Date of Hearing : 15.03.2017
घोषणा की तायीख /Date of Pronouncement : 07 .04.2017
आदे श / O R D E R
PER D. KARUNAKARA RAO, AM:
This appeal filed by the assessee on 17.9.2014 is against the order of the CIT (A)-4, Mumbai dated 17.7.2014 for the AY 2010-2011.
2. The only issue raised in this appeal relates to the net addition of Rs. 70,15,752/- (ie Rs. 90,08,056 - Rs. 19,92,304/-) u/s 14A r.w.s 115JB of the Act.
3. Before us, without insisting on the issue of making addition u/s 14A when assessment is made u/s 115JB of the Act, Ld Counsel for the assessee submitted that the assessee suo motto quantified the disallowance at Rs. 19,92,304/- u/s 14A f the Act. Further stating that the assessee earned dividend income of Rs. 58,95,101/- Ld Counsel for the assessee submitted that the total debit in the P & L Account works out to Rs. 41,70,492/-. The disallowance @ Rs. 90,08,056/- u/s 14A is much higher than the total debits to P & L Account. AO ignored the suo motto disallowances on account of STT payments of Rs. 21,51,865/-.
4. After hearing the above submissions of the assessee and the also the Ld DR for the Revenue, we find that the grounds raised in the appeal should be remanded for reworking of the disallowable sum u/s 14A of the Act. AO is directed to consider 2 the existing decisions on the issue and hear the assessee before making any disallowance u/s 14A r.w.s 115JB of the Act. It is a settled legal proposition that "average investment" needs to be adjusted under certain peculiar facts and the disallowance u/s 14A r.w. Rule 8D of the IT Rules, 1962 may not exceed the total claim of expenses in the P & L Account. AO shall re-compute the disallowance after granting a reasonable opportunity of being heard to the assessee as per the set principles of natural justice. Accordingly grounds raised by the assessee are allowed for statistical purposes.
5. In the result, appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court of 07th April, 2017.
Sd/- Sd/- (RAVISH SOOD) (D. KARUNAKARA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER भुंफई Mumbai; ददनांक 07.04.2017 व.नन.स./ OKK , Sr. PS
आदे श की प्रतिलऱपि अग्रेपिि/Copy of the Order forwarded to :
1. अऩीराथी / The Appellant
2. प्रत्मथी / The Respondent.
3. आमकय आमुक्त(अऩीर) / The CIT(A)-
4. आमकय आमुक्त / CIT
5. ववबागीम प्रनतननधध, आमकय अऩीरीम अधधकयण, भुंफई / DR, ITAT, Mumbai
6. गार्ड पाईर / Guard file.
सत्मावऩत प्रनत //True Copy// आदे शानस ु ार/ BY ORDER, उि/सहायक िंजीकार (Dy./Asstt. Registrar) आयकर अिीऱीय अधिकरण, भंफ ु ई / ITAT, Mumbai