THE SPUNPIPE & CONSTRUCTION CO.(BARODA) PVT. LTD,VADODARA vs. THE ACIT, CIRCLE-2(1)(1), VADODARA

This appeal is filed by the Assessee against the order dated 28/11/2018 passed by the Commissioner of Income-tax (Appeals)-2, Vadodara [“CIT(A)” in short] for Assessment Year 2016-17. 2. The Grounds of appeal are as under :-

The learned CIT(A) has erred in confirming the disallowance of Rs.5,80,810 under Section 14A read with Rule 8D on the ground that the CIT(A) has dismissed the appeal for AY 2014-2015 in as much as the assessee company has sufficient interest free funds and that the assessee The Spunpipe & Construction Co. (Baroda) Pvt.Ltd. vs. ACIT AY 2016-17 2 has not spent any administrative expenses and therefore the question of disallowance under Section 14A read with Rule 8D does not arise.

The appellant says and submits that the facts for A.Y. 2014-2015 and AY 2016-2017 are different and that the AO or CIT(A) has not discussed anything about the change of facts and CIT(A) has simply followed the CIT(A) Order for A.Y. 2014-2015 without considering the facts of the case.

The assessee is engaged in the business of manufacturing and supply of M.S. Pipes with coating, BWSC Pipes, in accepting turnkey contracts for providing and laying of pipes and civil works, fabrication/manufacturing of engineering goods, development of land, construction of building & in real estate. The assessee filed return of income on 07.102016 declaring total income at Rs.3,54,27,140/-. The Assessing Officer made disallowance of Rs.5,80,810/- u/s 14A read with Rule 8D and determined total income at Rs.3,40,06,680/-.

Being aggrieved by the Assessment order, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee.

At the time of hearing, none appeared on behalf of the assessee despite giving notice of hearing. There is no new address given by the assessee. Therefore, we are proceeding on the basis of the submissions of the assessee made before the CIT(A) and Assessing Officer which are mentioned in the orders.

The Ld. DR submitted that the Tribunal in assessee’s own case has partly allowed the issue thereby adding administrative expenses. The Ld. DR relied upon the order of the Tribunal being ITA Nos. 2594 & The Spunpipe & Construction Co. (Baroda) Pvt.Ltd. vs. ACIT AY 2016-17 3

In result, appeal of the assessee is partly allowed.

""यथ" / The Respondent. 3. संबं"धत आयकर आयु"त / Concerned CIT 4. आयकर आयु"त ( अपील ) / The CIT(A)-2, Vadodara

"वभागीय ""त"न"ध , आयकर अपील"य अ"धकरण , राजोकट/DR,ITAT, Ahmedabad, 6. गाड" फाईल /Guard file.