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Income Tax Appellate Tribunal, MUMBAI BENCH “E”, MUMBAI
ORDER
PER VIKAS AWASTHY, JM:
This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals) -47, Mumbai [ in short ‘the CIT(A)’] dated 13/06/2022 for the Assessment Year 2013-14.
Shri Yogesh Thar appearing on behalf of the assessee submits at the outset that he would be pressing only two grounds , i.e. ground No.2 and 5 of the grounds of appeal. In ground No.2 of the appeal the assessee has prayed for a direction to the Assessing Officer to following the directions of the CIT(A) while passing the order giving effect to the order of CIT(A). The ld. Departmental Representative submits that the CIT(A) while adjudicating the appeal of the assessee for Assessment Year 2013-14 vide order dated 30/01/2017 directed the Assessing Officer to compute disallowance under Rule 8D of the Income Tax Rules, 1962( in short ‘the Rules’) only on shares yielding dividend income. The Assessing Officer while giving effect to the order of CIT(A) has not given effect to the aforesaid direction. In fact the Assessing Officer has missed out in giving effect to the said directions of the CIT(A).
The ld. Authorized Representative for the assessee further submits that in ground No.5 of the appeal the assessee is praying for direction to the Assessing Officer to grant TDS credit of Rs.24,62,992/-. The Assessing Officer as erred in not granting full credit of the TDS amount.
The ld. Authorized Representative for the assessee submitted that the CIT(A) while deciding appeal of the assessee went on a different tangent, instead of adjudicating limited issue. The CIT(A) over stepped his jurisdiction in re-adjudicating the issue of computation disallowance u/s. 14A r.w.r. 8D. The assessee was in appeal against the order giving effect to the order of CIT(A) with a limited prayer for directions to Assessing Officer to follow the order of CIT(A) on all the issues.
Per contra, Shri Harishankar Lal representing the Department vehemently defended the impugned order and prayed for dismissing the appeal of assessee.
Both sides heard, orders of authorities below examined. This appeal emanates from the order giving effect to the order of CIT(A) by the Assessing Officer.
The short prayer of the assessee is that a direction may be given to the Assessing Officer to give effect to the order of the CIT(A) on the issue of computation of disallowance u/s. 14A r.w.r.8D of the Act. We find that the CIT(A) while adjudicating the issue of disallowance u/s. 14A r.w.r 8D had directed the Assessing Officer to recompute disallowance u/s. 14A r.w.r. 8D as per the directions of ITAT Kolkata Bench in assessee’s own case for Assessment Year 2008-09. The Tribunal in decided on 10/03/2017 had directed for calculating disallowance u/r. 8D only on those shares which have yielded dividend income during the year under consideration. The CIT(A) directed the Assessing Officer to compute disallowance under Rule 8D, accordingly. The Assessing Officer is directed to give effect to the order of CIT(A) dated 26/12/2017 qua computing disallowance u/s. 14A r.w.r. 8D. Ground No.2 of the appeal is thus, allowed for statistical purpose with the aforesaid directions.
In ground No.5 of appeal, the assessee has prayed to allow the benefit of TDS credit amounting to Rs.24,62,992/-. This issue is also restored back to the file of Assessing Officer to examine the actual amount of TDS credit allowable to the assessee, TDS credit already allowed and if short TDS is granted to the assessee the TDS credit as admissible to the assessee, as per documents on record may be allowed. Thus, ground No.5 of the appeal is allowed for statistical purpose.
No submissions were made by the assessee at this stage in respect of grounds No.1,3,4, 6 & 7. Hence, these grounds are not deliberated and are left open.
In the result, appeal by the assessee is partly allowed for statistical purpose. Order pronounced in the open court on Monday the 28th day of November, 2022.