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Income Tax Appellate Tribunal, “SMC”, BENCH
Before: SHRI R.C.SHARMA
IN THE INCOME TAX APPELLATE TRIBUNAL “SMC”, BENCH MUMBAI
BEFORE SHRI R.C.SHARMA, ACCOUNTANT MEMBER
ITA No. 911/Mum/2019 (Assessment Year: 2011-12) Matoshree Infrastructure Vs. I.T.O. Pvt. Ltd., Ward-7(2)(1) 102, Aditi Building, Aayakar Bhavan, Maharshi Shivsena Bhavan Path, Karve Road, Chuchgate, Dadar (W), Mumbai- Mumbai-400020 400028. PAN/GIR No. AAFCM 2002 G (Appellant) .. (Respondent)
Assessee by Neelam C Jadhav (AR) Revenue by Shri R.K. Gubgotra (JCIT-DR) Date of Hearing 06/02/2020 Date of Pronouncement 10/02/2020 आदेश / O R D E R
PER: R.C. SHARMA, A.M. This appeal by the assessee is directed against the order dated
31/10/2018 of ld. CIT(A)-13, Mumbai for the A.Y. 2011-12 in the
matter of order passed U/s 143(3) of the Income Tax Act, 1961 (in
short, the Act).
In this appeal, the assessee is aggrieved for the disallowance
made U/s 14A of the Act.
Rival contentions have been heard and record perused. Facts in
brief are that the assessee company is engaged in property
development business. The assessment of the company resulted in
2 ITA No. 911/Mum/2019 Matoshree Infrastructure P Ltd. Vs ITO addition of Rs. 6,32,483/- to the returned income. The addition
represents disallowance of expenses of Rs. 6,32,483/- invoking the
provision of Section 14A. The said disallowance is confirmed by the ld.
CIT(A).
From the record I found that the disallowance has been made by
the A.O. giving reasoning that the assessee has taken unsecured loans
of Rs. 2.97 crores and is paying interest on loan of Rs. 1.19 crores.
Accordingly, he disallowed proportionate interest U/s 14A. As per P&L
account the assessee has only claimed interest of Rs. 14,292/-. While
invoking provisions of Section 14A of the Act, the disallowance cannot
be more than the expenditure claimed. In the instant case, as per the
audited accounts, the assessee has only incurred expenditure on
account of payment of interest to the extent of Rs. 14,292/-.
Accordingly, I direct the A.O. to again verify the facts and restrict
disallowance U/s 14A of the Act to the extent of Rs. 14,292/-. I direct
accordingly.
In the result, appeal of the assessee is allowed in part.
Order pronounced in the open court on 10th February, 2020.
Sd/- (R.C.SHARMA) ACCOUNTANT MEMBER Mumbai; Dated 10/02/2020
3 ITA No. 911/Mum/2019 Matoshree Infrastructure P Ltd. Vs ITO *Ranjan Copy of the Order forwarded to : 1. The Appellant 2. The Respondent. 3. The CIT(A), Mumbai. 4. CIT 5. DR, ITAT, Mumbai 6. Guard file. BY ORDER,
स�या�पत ��त //True Copy//
(Asstt. Registrar) ITAT, Mumbai