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Income Tax Appellate Tribunal, “D”, BENCH MUMBAI
Before: SHRI R.C.SHARMA, AM & SHRI SANDEEP GOSAIN, JM
आदेश / O R D E R PER R.C.SHARMA (A.M):
This is an appeal filed by the Revenue against the order of CIT(A)- 3, Mumbai dated 18/01/2017 for A.Y.2012-13 in the matter of order passed u/s.143(3) of the IT Act.
In this appeal, Revenue is aggrieved for deleting the part of the disallowance made u/s.14A r.w.r. 8D of the IT Act.
Rival contentions have been heard and record perused.
The brief facts of the case are that the assessee e-filed its return of income on 28/09/2012 declaring a total income of Rs.4,65,77,29O/- under M/s. DSP Investment Pvt. Ltd., normal provisions and Rs.13,22,33,298/- u/s.115JB. The case was selected for scrutiny. Notice u/s 143(2) dated 14/08/2013 was issued and served on the assessee. Subsequently, notice u/s 142(1) was issued and served upon the assessee by the Assessing Officer. The assessee company is engaged in the business of investment. The assessee company is non-banking finance company registered with the Reserve Bank of India. The Assessing Officer while passing the assessment order, an amount of Rs.1,59,19,891/- in respect of disallowance u/s 14A was added to the total income of the appellant. The total income of the appellant was calculated at Rs.6,24,97,180/- 5. By the impugned order CIT(A) restricted the disallowance to the extent of Rs.73,95,520/- under Rule 8D2(iii) and Rs.143,046/- under Rule 8D2(i) after following the order of the Tribunal in assessee’s own case for the A.Y.2008-09, 2009-10 and 2010-11. Precise observation of CIT(A) was as under:-
6.2 The similar issue reached up to the ITAT Mumbai for AY 2008-09 ™ 2009-10 in ITA No. 6776/Mum/2012, 2010-11 in ITA No. 7i37/Mum/20i3 and 2011-12 in ITA No. 5468/Mum/2oi4, wherein the Hon'ble ITAT has held that – "g. The facts of the assessee case being materially same to decision of the tribunal in the case of sister concern, we respectfully following the order of Co-ordinate Bench of the Tribunal set aside the order of the CIT(A) by restricting the disallowance u/s 14A read with rule 8D to Rs. 9,00,9077- as voluntarily made by the assessee and according the appeal of the assessee is disallowed.