M/S. JAYSHREE FINVEST LTD.,RAJKOT-GUJARAT vs. THE ACIT, CIRCLE-5, RAJKOT-GUJARAT

ITA 36/RJT/2018Status: DisposedITAT Rajkot15 November 2019AY 2010-116 pages

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that Section 14A of the Income Tax Act applies irrespective of whether shares are held as stock-in-trade or as capital assets. Therefore, the assessee's plea was found to have no merit.

What were the facts?

The assessee, a dealer in shares, appealed against the disallowance of Rs. 9,69,399/- made under Section 14A read with Rule 8D. The assessee argued that dividend income from trading assets is not subject to disallowance under Section 14A.

What were the issues?

Whether dividend income earned from shares held as stock-in-trade is eligible for disallowance under Section 14A of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 14A

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Cases cited in this judgment(1)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Maxopp Investment Ltd. v. CIT
402 ITR 640 · 2018 · SC · Read judgment
1,596 citing

Income Tax Appellate Tribunal, “RAJKOT” BENCH, RAJKOT

Before: SHRI PRADIP KUMAR KEDIA

For Appellant: Mr. Suhas Mistry, Sr.D.R

आदेश/O R D E R

PER PRADIP KUMAR KEDIA - AM:

The captioned appeal has been filed at the instance of the assessee against the order of the Commissioner of Income Tax(Appeals)-3, Rajkot (‘CIT' in short), dated 16.11.2017

ITA No. 36/Rjt/18 [M/s. Jayshree Finvest Ltd. vs. CIT(A)] A.Y. 2010-11 - 2 -

arising in the assessment order dated 30.03.2013 passed by the Assessing Officer (AO) under s. 143(3) of the Income Tax Act, 1961 (the Act) concerning AY 2010-11.

The solitary ground of appeal raised by the assessee concerns disallowance of Rs.9,69,399/- made under s.14A r.w. Rule 8D of the Income Tax Rules.

When the matter was called for hearing, none appeared for the assessee. However, a written submission was placed on record. The matter was accordingly proceeded ex parte on the basis of written submissions filed.

The learned DR for the Revenue relied upon the order of the CIT(A).

We have carefully considered the rival submissions. As per the submissions, the assessee seeks to submit that the assessee being a dealer in shares and securities and holds shares as trading assets, the dividend income generated from such trading asset in not susceptible to the disallowance under s.14A of the Act. We find that the issue is no longer res integra. The Hon’ble Supreme Court in Maxopp Investment Ltd. vs. CIT [2018] 402 ITR 640 (SC) has inter alia hold that Section 14A of the Act applies irrespective of whether the shares are held as stock-in-trade or as capital asset. Thus, in view of the decision

ITA No. 36/Rjt/18 [M/s. Jayshree Finvest Ltd. vs. CIT(A)] A.Y. 2010-11 - 3 -

of the Hon’ble Supreme Court, we see no merit in the plea of the assessee.

In the result, the appeal of the assessee is dismissed.

This Order pronounced in Open Court on 15/11/2019

Sd/- Sd/- (MADHUMITA ROY) (PRADIP KUMAR KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad: Dated 15/11/2019 True Copy S. K. SINHA 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,

Deputy/Asstt. Registrar ITAT, Rajkot

IN THE INCOME TAX APPELLATE TRIBUNAL “RAJKOT” BENCH, RAJKOT [Conducted through E-Court at Ahmedabad]

BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SMT. MADHUMITA ROY, JUDICIAL MEMBER

आयकर अपील सं./I.T.A. No. 36/Rjt/2018 (�नधा�रण वष� / Assessment Year : 2010-11)

M/s. Jayshree Finvest The Commissioner of बनाम/ Ltd. Income Tax Appeal-3 Vs. Ground Floor, Ajay Rajkot Mension, Malaviya Road, Rajkot �थायी लेखा सं./जीआइआर सं./PAN/GIR No. : AAAAS2360J .. (अपीलाथ� /Appellant) (��यथ� / Respondent)

अपीलाथ� ओर से /Appellant by : None (Written Submission) ��यथ� क� ओर से / Mr. Suhas Mistry, Sr.D.R. Respondent by : सुनवाई क� तार�ख / Date of 14/10/2019 Hearing घोषणा क� तार�ख /Date of 15/11/2019 Pronouncement