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[Cites 2, Cited by 0]

Income Tax Appellate Tribunal - Mumbai

Inventure Growth & Securities Ltd, ... vs Assessee on 8 August, 2014

                 IN THE INCOME TAX APPELLATE TRIBUNAL,
                       MUMBAI BENCH "I", MUMBAI

     BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER AND
               DR. S.T.M. PAVALAN, JUDICIAL MEMBER

                               ITA No. 850/Mum/2013
                              Assessment Year: 2009-10

         M/s. Inventure Growth &               CIT(A)-8
         Securities Ltd.                        Aayakar Bhavan
         201, Viraj Tower, Near            Vs. Mumbai 400 020
         Landmark Western Express
         Highway, Andheri East
         Mumbai- 400 064
               (Appellant)                                  (Respondent)

                    Permanent Account No. :-AAACI 2044 K

                            Assessee by      :   Shri Paresh Vakharia
                             Revenue by      :   Shri Sanjeev Jain

                      Date of hearing  : 03.06.2014
                 Date of Pronouncement : 08.08.2014


                                       ORDER

PER DR. S.T.M. PAVALAN, JM:

This appeal filed by the Assessee is directed against the order of the Ld.CIT(A) -8, Mumbai dated 26.11.2012 for the Assessment Year 2009-10.

2. In this appeal, the assessee has raised following grounds:-

"In the facts and circumstances of the case and in law, the Ld.CIT(A) erred in confirming disallowance of Rs.6,27,490/- u/s 14A of the Income-tax Act read with Rule 8D of the Income-tax Rules.
The Ld.CIT(A) committed error in not appreciating your appellant's detailed submissions on facts and also committed grave error in law in not appreciating the legal precedents cited before, including the directly applicable judgments of the jurisdictional High Court.

3. The relevant facts are that during the assessment proceedings, the AO observed that the assessee had earned exempt income and allocated Rs.1,00,000/- as expense towards earning the exempt income on ad hoc basis. However, the AO computed the disallowance u/s 14A in accordance with the provision of Rule 8D at ITA No. 850/Mum/2013 2 M/s. Inventure Growth & Securities Ltd.

Assessment Year: 2009-10 Rs.6,27,490/-. On appeal, the Ld.CIT(A), by following the order of the Ld.CIT(A) for the earlier A.Y. 2008-09, dismissed the ground of appeal and thereby confirmed the said disallowance made by the AO. Aggrieved by the impugned decision, the assessee is in appeal before us.

4. Having heard both the sides and perused the material on record, it is pertinent to mention that according to the assessee, the assessee has not preferred any further appeal to the Tribunal against the order of the Ld.CIT(A) for the earlier A.Y. 2008-09 considering the smallness of the amount involved in the said assessment year. However, it has been brought to our notice that during the year under consideration, the assessee has made elaborate submission citing various decisions before the Ld.CIT(A) and pleaded that the disallowance made by the AO is unwarranted. The relevant submission made before the Ld.CIT(A) is part of the records and the same is available at pages 29 to 45 of the Paper Book. In view of the fact that the Ld.CIT(A) has simply passed the impugned order without considering the submissions and the case laws cited by the assessee and confirmed the disallowance, we are of the considered view that it is just and proper to set aside this appeal to the file of the Ld.CIT(A) for readjudication after providing reasonable opportunity of being heard for passing reasoned order. We direct and order accordingly.

4. In the result, the appeal filed by the Assessee is allowed for statistical purpose.

Order pronounced in the open court on 8th day of August, 2014.

                Sd/-                                                                 Sd/-
      (D. KARUNAKARA RAO)                                           (Dr. S.T.M. PAVALAN)
     ACCOUNTANT MEMBER                                               JUDICIAL MEMBER
Mumbai, Dated: 08.08.2014
*Srivastava
Copy to: The   Appellant
         The   Respondent
         The   CIT, Concerned, Mumbai
         The   CIT(A) Concerned, Mumbai
         The   DR "I" Bench
                                          //True Copy//
                                                              By Order

                                                Dy/Asstt. Registrar, ITAT, Mumbai.