SHAILA J. PARIKH,MUMBAI vs. ITO -WARD- 17(3)(3), MUMBAI

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ITA 6285/MUM/2018Status: DisposedITAT Mumbai13 January 2021AY 2012-133 pages

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

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that no disallowance under Section 14A read with Rule 8D can be made if the assessee has not claimed any expenses in the computation of total income. Following a co-ordinate bench decision, the disallowance was directed to be deleted.

What were the facts?

The assessee's appeals pertained to disallowance of expenses under Section 14A read with Rule 8D for AYs 2011-12 and 2012-13. The assessee argued that no expenses were claimed, and therefore, no disallowance should be made, citing a co-ordinate bench decision.

What were the issues?

Whether disallowance under Section 14A read with Rule 8D is permissible when the assessee has not claimed any expenses.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “G”, MUMBAI

Before: SHRI RAJESH KUMAR & SHRI AMARJIT SINGH

For Appellant: Shri Chetan Jain, A.R
For Respondent: Shri T.S. Khalsa, D.R
Hearing: 16.12.2020Pronounced: 13.01.2021

O R D E R

Per Rajesh Kumar, Accountant Member:

1.

The above titled appeals have been preferred by the assessee against the order dated 29.08.2018 of the Commissioner of Income Tax (Appeals) [hereinafter referred to as the CIT(A)] relevant to assessment year 2012-13 & 2011-12. A.Y. 2011-12 2. The only issue raised by the assessee in the various grounds of appeal is against the confirmation of disallowance of Rs.8,56,829/- by Ld. CIT(A) as made by the AO under section 14A read with rule 8D.

2 & ors Mrs. Shaila J. Parikh 3. The Ld. Counsel at the outset submitted that the issue is squarely covered by the decision of the co-ordinate bench of the Tribunal in assessee’s own case in ITA No.3185/M/2013 vide order dated 16.10.2016 wherein the co-ordinate bench of the Tribunal has deleted the disallowance under section 14A read with rule 8D by holding that assessee has not claimed any expenditure and therefore no disallowance can be made. The Ld. Counsel stated that the said decision of the co-ordinate bench of the Tribunal was reproduced by the Ld. CIT(A) at para 4.2. of the appellate order. The Ld. Counsel submitted that since in the current year also no claim of expenses have been made while computing the income of the assessee. Therefore following the said decision of the Tribunal the disallowance of Rs.8,56,829/- may kindly be deleted.

4.

The Ld. D.R., on the other hand, argued before the Bench that it is not clear whether assessee has not claimed any expenses while computing the income, therefore this needs to be verified at the level of AO and may kindly be restored to the file of the AO.

5.

After hearing both the parties and perusing the material on record, we observe that the identical issue has been decided by the co-ordinate bench of the Tribunal in A.Y. 2009-10 in assessee’s own case wherein it has been held that no disallowance can be made where the assessee has not claimed any expenses. Following the said decision of the co- ordinate bench of the Tribunal, we are inclined to hold in the current year that disallowance of Rs.8,56,829/- can not be made as assessee has not claimed any expenses in the computation of 3 & ors Mrs. Shaila J. Parikh total income. Accordingly the AO is directed to delete the disallowance of Rs.8,56,829/-. Appeal of the assessee is allowed. ITA No.6285/M/2018 A.Y. 2012-13 6. The issue raised in this appeal is identical to one as decided by us in ITA No.6286/M/2018 A.Y. 2011-12 which is qua the expenses disallowed by the AO under section 14A read with rule 8D. Our finding in ITA No.6286/M/2018 A.Y. 2011-12 would mutatis mutandis apply to this appeal also. Accordingly, this appeal of the assessee is also allowed.

7.

In the result, both the appeals of the assessee are allowed.

Order pronounced in the open court on 13.01.2021.

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