M/S. MEW ELECTRICALS LTD.(FORMERLY MAHESH ENAMELLED WIRES PVT.LTD.),BARODA vs. THE TAX RECOVERY OFFICER-4 & A.O., VADODARA

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ITA 329/AHD/2016Status: DisposedITAT Ahmedabad16 January 2018AY 2012-134 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that an identical issue for the assessment year 2011-12 was set aside to the CIT(A) for de novo adjudication. Following this precedent, the present issue was also set aside to the CIT(A) for fresh adjudication.

What were the facts?

The Assessing Officer disallowed Rs. 7,27,241/- under Section 14A read with Rule 8D for the assessment year 2012-13. The CIT(A) confirmed this disallowance.

What were the issues?

Whether the disallowance of expenses under Section 14A read with Rule 8D was justified. The issue was remitted for fresh consideration.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD

Before: SHRI RAJPAL YADAV, JM & SHRI PRADIP KUMAR KEDIA, AM

Hearing: 16/01/2018

आदेश / O R D E R PER PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER The captioned appeal has been filed at the instance of the assessee against the order of the Ld. Commissioner of Income Tax(Appeals) dated 19.11.2015 arising in the assessment order dated 07.11.2014 passed under section 143(3) of the Act by Assessing Officer relevant to assessment year 2012-13.

ITA.No. 329/Ahd/2016 Assessment year 2012-13 - 2 – 2. In the captioned appeal the assessee has assailed the disallowance of Rs. 7,27,241/- by the Assessing Officer by invoking section 14A of the Act.

3.

When the matter was called for hearing the Learned Authorized Representative for the assessee submitted that the Assessing Officer made a total disallowance of Rs. 7,27,241/- comprising of Rs. 6,77,898/- out of interest and Rs. 49,343/- towards administrative expenses under Rule 8D r.w.s. 14A of the Act. It was submitted that Learned CIT(A) also confirmed the aforesaid disallowance based on the appellate order of the Ld. CIT(A) relevant to assessment year 2011-12 dated 05.06.2015. It was pointed out by the Ld. Authorized Representative that the aforesaid appellate order of the Ld. CIT(A) relevant to assessment year 2011-12 was set aside and restored to the file of the Ld. CIT(A) in ITA No. 2592/Ahd/2015 order dated 19.12.2017. The Ld. Authorized Representative accordingly sought appropriate relief.

4.

The Ld. Departmental Representative on the other hand submitted that the captained issue can be set aside to the file of the Ld. CIT(A) in line with the view taken by the ITAT relevant to assessment year 2011-12.

5.

We have carefully considered the rival submissions. We find that identical issue came up before the Co-ordinate Bench in assessment year 2011-12 in assessee own case where in the similar

ITA.No. 329/Ahd/2016 Assessment year 2012-13 - 3 – circumstances. The issue was set aside to the file of the Ld. CIT(A) for de novo adjudication.

6.

The relevant operative para of the order of the Co-ordinate Bench relevant to assessment year 2011-12 is reproduced hereunder:-

We have heard both the sides and perused the material on record. We observed that ld. CIT(A) has sustained the disallowance made by the assessing officer u/s. 14A r.w. Rule 8D in respect of expenditure incurred for earning exempt income by referring to the decision of ld. CIT(A) on the identical issue in the case of assessee for assessment year 2008-09. We have considered the submission of the ld. counsel that because of smallness of the amount of disallowance involved the assessee has not contested the decision of the ld. CIT(A) for assessment year 2008-09. In view of the aforesaid facts and circumstances we observe that in the interest of justice, it will be appropriate to restore this case to the file of ld. CIT(A) to decide it on merit without referring to the decision of the ld. CIT(A) for the assessment year 2008-09. Accordingly, the issue is set aside to the ld. CIT(A) to decide afresh after affording adequate opportunities to the assessee.

7.

In consonance with the view taken in assessment year 2011- 12 the captained issue in assessment year 2012-13 is also set aside to the file of the Ld. CIT(A) with identical directions applicable to assessment year 2011-12. Accordingly, the issue is set aside and

ITA.No. 329/Ahd/2016 Assessment year 2012-13 - 4 – restored to the file of the Ld. CIT(A) for adjudication afresh after affording proper opportunity to the assessee in this regard.

8.

In the result appeal of the assessee is allowed for statistical purposes.

Order pronounced in the Court on 16/01/ 2018 at Ahmedabad.

Sd/- Sd/- (RAJPAL YADAV) (PRADIP KUMAR KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER Mukul Dated, 16 /01/2018 आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent. 3. संबं�धत आयकर आयु�त / Concerned CIT 4. आयकर आयु�त(अपील) / The CIT(A)- 5. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, अहमदाबाद /DR,ITAT, Ahmedabad. 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER, सहायक पंजीकार (Asstt.Registrar) आयकर अपील�य अ�धकरण ITAT, Ahmedabad

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