SARABHAI HOLDINGS PVT. LTD.,AHMEDABAD vs. THE DY.CIT, CIRCLE-8, AHMEDABAD

PDF · subscribers
ITA 2327/AHD/2015Status: DisposedITAT Ahmedabad21 May 2018AY 2011-123 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal, following a coordinate bench decision in the assessee's own case, set aside the CIT(A)'s order and remanded the matter back to the AO for fresh adjudication.

What were the facts?

The assessee earned dividend income and made substantial investments. The Assessing Officer (AO) disallowed a portion of expenses under Section 14A and added back rent and service charges for non-deduction of TDS.

What were the issues?

Whether the disallowance under Section 14A was correctly made and whether the addition for non-deduction of TDS under Section 40(a)(ia) was justified.

Which sections of the Income-tax Act were involved?

Section 14A,Section 40(a)(ia)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “C” BENCH

Before: SHRI WASEEM AHMED & SHRI MAHAVIR PRASAD

For Appellant: Shri M.K. Patel, AR

PER MAHAVIR PRASAD, JUDICIAL MEMBER 1. This appeal by the Assessee is directed against the order of the Ld. CIT(A)-9, Ahmedabad dated 28.05.2015 pertaining to A.Y. 2011-12 and following grounds have been taken:.

ITA No. 2327/Ahd/2015 2 . A.Y. 2011-12 1. That on facts and in law the learned Commissioner of Income tax (Appeals) has grievously erred in partially confirming the disallowance made u/s.14A of the Act. 2. That on facts and in law the learned Commissioner of Income tax (Appeals) has grievously erred in confirming the addition of Rs.1,02,723/- u/s.40(a)(ia) of the Act.

2.

Facts of the case are that on perusal of the details submitted during the course of assessment proceedings, it is seen that the assessee has earned dividend income to the tune ofRs. 10,29,734/- which is exempt from tax u/s. 10(34) and 10(35) of the Act. The investment made by the assessee was at Rs.27,13,68,000/- as on 01/04/2010 and the investment at the close of the year as on 31/03/2011 was at Rs.23,48,44,000/-. The total value of loans at the beginning of the year as well as at the close of the year remains the same at Rs.14,58,000/-. Substantial fund is invested into the dividend yielding scripts. Thereafter a show cause notice was issued to the assessee and replied was submitted by the assessee but ld. A.O. was not convinced with the reply filed by the assessee and made addition of Rs. 12,65,530/-.

3.

On perusal of record of the assessee it was found that the assessee has paid rent and service charges of Rs. 1,02,723/- to Bakubhai Ambalal (Realty) Pvt. Ltd. but assessee has not deducted TDS on the said payment of Rs. 1,02,723/-. Thereafter a show cause notice was issued to the assessee but ld. A.O. was not convinced with the reply filed by the assessee has made addition of Rs. 1,02,723/-.

4.

Against the above said additions, appellant preferred first statutory appeal before the ld. CIT(A).

ITA No. 2327/Ahd/2015 3 . A.Y. 2011-12

5.

Now appellant is before us.

6.

We have heard both the parties and gone through the relevant record. Ld. A.R. cited an order of Co-ordinate Bench in assessee’s own case in ITA No. 2741/Ahd/2013 for Assessment Year 2010-11 on identical issues, ITAT Bench set aside the order of ld. CIT(A) and remanded back the matter to the file of the A.O. Thus, following the Co-ordinate Bench decision, we also remand this matter back to the file of the A.O. to decide a matter afresh in accordance with law in the light of decision in the case of Ansal Land Mark Township (P) Ltd. (supra). Assessee is also directed to co-operate with the ld. A.O. for speedy disposal of the appeal.

7.

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

Order pronounced in Open Court on 21 - 05- 2018 Sd/- Sd/- (WASEEM AHMED) (MAHAVIR PRASAD) ACCOUNTANT MEMBER True Copy JUDICIAL MEMBER Ahmedabad: Dated 21/05/2018 Rajesh Copy of the Order forwarded to:- 1. The Appellant. 2. The Respondent. 3. The CIT (Appeals) – 4. The CIT concerned. 5. The DR., ITAT, Ahmedabad. 6. Guard File. By ORDER

Deputy/Asstt.Registrar ITAT,Ahmedabad

More judgments on Section 14A

All 15,875 judgments and leading authorities on Section 14A →

Recent GST High Court judgments

Search GST case law →