Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, “D” BENCH, AHMEDABAD
Before: SHRI RAJPAL YADAV & SHRI PRADIP KUMAR KEDIA
PER PRADIP KUMAR KEDIA - AM:
The captioned appeal has been filed at the instance of the assessee against the order of the CIT(A)-2, Ahmedabad (‘CIT(A)’ in short), dated 27.02.2015 arising in the assessment order dated 28.02.2014 passed by the Assessing Officer (AO) under s. 143(3) r.w.s 144C of the Income Tax Act, 1961 (the Act) concerning A.Y. 2010-11.
ITA No.1589/Ahd/2015 [Meghmani Organics Ltd. vs. DCIT] A.Y. 2010-11 - 2 - 2. Ground No. 1 to 9 concerns disallowance u/s. 14A read with
Rule 8D of the Income Tax Rules. The Ld. AR for the assessee
submitted that the exempt income is pagged at Rs. 3,14,117/- only and
therefore the disallowance under 14A cannot exceed the aforesaid
amount. We find merit in the plea of the assessee in view of the
decision of the Hon’ble Gujarat High Court in the case of CIT vs.
Energy Corrtech Pvt. Ltd. 372 ITR 97 and DCIT vs. TGB Banquets
Hotels Ltd. in Tax Appeal No. 470 of 2012 dated 21.06.2016
(Gujarat). Therefore the AO has directed to restrict the disallowance
u/s. 14A to the extent of exempt income. In the result, ground no. 1 to
9 is partly allowed and disposed in terms of above.
Ground No. 10 concerns disallowance in respect of deduction
under 10B of the Act. At the time of hearing, the Ld. AR for the
assessee fairly submitted that she does not seek to press the aforesaid
ground. Consequently Ground No. 10 is dismissed as not pressed.
Ground No. 11 concerns disallowance of Rs. 6,17,972/- in
respect of LTCG. With the assistance of the Ld. AR of the assessee,
we have perused of the order of the CIT(A) and we do not find any
infirmity therein. Therefore, without repeating the findings of the
CIT(A), we decline to interfere. Ground No. 11 is therefore
dismissed.
Ground No. 12 towards addition of upward adjustment is
dismissed as not pressed.
ITA No.1589/Ahd/2015 [Meghmani Organics Ltd. vs. DCIT] A.Y. 2010-11 - 3 -
Ground No. 13 concerns additions in the book profit computed
u/s. 115JB of the Act on account of disallowance u/s. 14A of the Act.
In view of the long line of judicial precedents including the decision
of the Special Bench in ACIT vs. Vireet Investments Ltd. 165 ITD 27
(SB), we find merit in the plea of the assessee. The AO is accordingly
directed to delete the addition to the book profit on this score.
Ground No. 13 is accordingly allowed.
In the result, appeal of the assessee is partly allowed.
This Order pronounced in Open Court on 27/03/2019
Sd/- Sd/- (RAJPAL YADAV) (PRADIP KUMAR KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad: Dated 27/03/2019 Tanmay True Copy आदेश 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. गाड� फाइल / Guard file.
By order/आदेश से,
उप/सहायक पंजीकार आयकर अपील�य अ�धकरण, अहमदाबाद ।