STAR CHEMICALS (BOMBAY) PVT LTD.,MUMBAI vs. DCIT-3(3), MUMBAI

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ITA 4448/MUM/2019Status: DisposedITAT Mumbai25 August 2021AY 2014-153 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the order of the CIT(A), finding it to be in accordance with settled legal position. The directions to examine investments yielding exempt income and exclude disallowance from Book Profits were deemed sufficient.

What were the facts?

The assessee earned exempt income and made a suo-moto disallowance under Section 14A. The Assessing Officer (AO) applied Rule 8D and computed a higher disallowance, adding the differential to the income. The Commissioner of Income-Tax (Appeals) [CIT(A)] directed the AO to consider only investments yielding exempt income and exclude the disallowance from Book Profits under Section 115JB.

What were the issues?

Whether the disallowance under Section 14A should be computed considering only investments yielding exempt income, and whether such disallowance should be excluded from Book Profits under Section 115JB.

Which sections of the Income-tax Act were involved?

Section 14A,Section 115JB

AI-generated summary — verify with the full judgment below

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Income Tax Appellate Tribunal, “G” BENCH, MUMBAI

Before: HON’BLE SHRI VIKAS AWASTHY, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

For Appellant: Shri Anil Thanawad– Ld. AR
For Respondent: Shri T. S. Khalsa– Ld. Sr. DR

आयकर अपीलीय अधिकरण “ज़ी” न्यायपीठ म ुंबई में। IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI माननीय श्री विकास अिस्थी, न्यावयक सदस्य एवं माननीय श्री मनोज कुमार अग्रवाल ,लेखा सदस्य के समक्ष। BEFORE HON’BLE SHRI VIKAS AWASTHY, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM (Hearing through Video Conferencing Mode) आयकरअपील सं./ (धििाारण वर्ा / Assessment Year: 2014-15) Star Chemicals (Bombay) Pvt. Ltd. DCIT-3(3) बिाम/ 6th floor, Aaykar Bhavan, 55/58, Jolly Maker Chambers No. 2, Vs. Nariman Point, Mumbai-400 021 Mumbai-400 020 स्थायीलेखासं./ जीआइआरसं./ PAN/GIR No. AAACS-7485-E (अपीलाथी/Appellant) (प्रत्यथी / Respondent) : Assessee by : Shri Anil Thanawad– Ld. AR Revenue by : Shri T. S. Khalsa– Ld. Sr. DR सुनवाई की तारीख/ : 16/08/2021 Date of Hearing घोषणा की तारीख / : 25/08/2021 Date of Pronouncement आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member)

1.

The sole grievance of the assessee in captioned appeal for Assessment Year (AY) 2014-15 is disallowance u/s 14A. The assessment was framed by Ld. Assessing Officer (AO) u/s 143(3) on 30/06/2016 whereas impugned order was passed by learned Commissioner of Income-Tax (Appeals)-9, Mumbai [CIT(A)] on 18/06/2019 against which the assessee is in further appeal before us.

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