SUPER SALES INDIA LIMITED,COIMBATORE vs. ITO, CORP WARD 2, COIMBATORE

PDF · subscribers
ITA 501/CHNY/2024Status: DisposedITAT Chennai03 July 2024AY 2017-18Bench: HON’BLE SHRI MAHAVIR SINGH, VP AND HON’BLE SHRI MANOJ KUMAR AGGARWAL (Accountant Member)2 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal directed the AO to compute the disallowance only on old investments and not on new investments made at the fag-end of the financial year, as no dividend was earned on the new investment.

What were the facts?

The assessee earned exempt dividend income but did not offer any disallowance under Section 14A. The Assessing Officer, applying Rule 8D, computed a disallowance of Rs. 5.83 Lacs, which was confirmed by the CIT(A).

What were the issues?

Whether disallowance under Section 14A should be made on investments acquired at the fag-end of the financial year on which no dividend was earned.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, CHENNAI

Before: HON’BLE SHRI MAHAVIR SINGH, VP & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

आयकर अपीलीय अिधकरण “ए” �ायपीठ चे�ई म�। IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, CHENNAI माननीय �ी महावीर िसंह, उपा ! एवं माननीय �ी मनोज कुमार अ%वाल ,लेखा सद( के सम!। BEFORE HON’BLE SHRI MAHAVIR SINGH, VP AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ (िनधा)रण वष) / Assessment Year: 2017-18) M/s. Super Sales India Limited ITO बनाम/ 34-A, Kamaraj Road, Corporate Ward-2 Vs. Coimbatore-641 018. Coimbatore. �थायीलेखासं./जीआइआरसं./PAN/GIR No. AADCS-0650-A (अपीलाथ�/Appellant) : (� थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : Shri R.Vijayaraghavan (Advocate)- Ld.AR � थ�कीओरसे/Respondent by : Shri AR V Sreenivasan(Addl.CIT) -Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 25-06-2024 घोषणाकीतारीख /Date of Pronouncement : 03-07-2024 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member)

1.

Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of order passed by Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] on 01-01-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s 143(3) of the Act on 30-12-2019. The sole grievance of the assessee is confirmation of disallowance u/s 14A r.w.r 8D(2) for Rs.5.83 Lacs.

2.

The assessee earned exempt dividend income of Rs.71.79 Lacs but did not offer any disallowance u/s 14A. The Ld. AO, applying Rule 8D, computed disallowance of Rs.5.83 Lacs. The same was computed as 1% of yearly average of monthly averages of total investments. The Ld. CIT(A) confirmed the same against which the assessee is in further appeal before us.

3.

Upon perusal of Page No.7 of paper-book, it could be seen that the assessee has received dividend on 179480 numbers of shares of LMW. These shares were acquired on 26-02-2004. Another 25000 number of shares have been acquired at the fag-end of this financial year i.e., on 27-03-2017. The assessee has not earned any dividend on new investment. Therefore, we direct Ld. AO to compute the disallowance only on old investments and not on new investments made on 27-03- 2017. 4. The appeal stand partly allowed. Order pronounced on 3rd July, 2024 Sd/- Sd/- (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) उपा56 / VICE PRESIDENT लेखा सद8 / ACCOUNTANT MEMBER चे:ई Chennai; िदनांक Dated :03-07-2024 DS आदेशकीGितिलिपअ%ेिषत/Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. � थ�/Respondent 3. आयकरआयुB/CIT Coimbatore. 4. िवभागीय�ितिनिध/DR 5. गाडGफाईल/GF

More judgments on Section 14A

All 15,875 judgments and leading authorities on Section 14A →

Recent GST High Court judgments

Search GST case law →