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Income Tax Appellate Tribunal, “RAJKOT” BENCH, RAJKOT
Before: SHRI PRADIP KUMAR KEDIA
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
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