SPEED TRADE SECURITIES P.LTD,MUMBAI vs. ACIT RG 7(2), MUMBAI

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ITA 2291/MUM/2013Status: DisposedITAT Mumbai19 October 2016AY 2008-092 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the tax authorities had not examined the assessee's contention that dividend income was received in the normal course of share trading. Therefore, the issue was set aside and restored to the Assessing Officer for a fresh examination.

What were the facts?

The assessee's appeal against the CIT(A)'s order for AY 2008-09 was heard ex parte as the assessee did not appear. The sole issue was the disallowance made under Section 14A read with Rule 8D.

What were the issues?

Whether the disallowance under Section 14A read with Rule 8D was correctly made, considering the assessee's business of share trading and receipt of dividend income in the normal course of business.

Which sections of the Income-tax Act were involved?

Section 14A

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Income Tax Appellate Tribunal, “E” Bench, Mumbai

Before: Shri B.R. Baskaran (AM)& Ramlal Negi (JM)

For Respondent: Shri Nitin Waghmode
Hearing: 18.10.2016Pronounced: 18.10.2016

O R D E R Per B.R. Baskaran (AM) :-

The appeal filed by the assessee is directed against the order dated 4.1.2013 passed by learned CIT(A)-9, Mumbai and it relates to A.Y. 2008-09.

2.

None appeared on behalf of the assessee even though case was adjourned on the last occasion at the specific request of the assessee. Hence, we proceed to dispose of the appeal ex parte, without presence of the assessee.

3.

The solitary issue urged in this appeal relates to disallowance made u/s. 14A read with Rule 8D of the I.T. Rules.

4.

We heard learned Departmental Representative and perused the record. From the order passed by learned CIT(A), we noticed that the first appellate authority has followed decision rendered by the Special bench of the Tribunal in the case of Daga Capital Investment (2008) 26 SOT 603. We noticed that the assessee has taken plea that it is a trader in shares and dividend was received

2 Speed Trade Securities Pvt. Ltd. during the normal course of carrying on the business. We also noticed that the assessee has also placed reliance on certain case laws. We noticed that this contention of the assessee has not been examined by the tax authorities. Under these set of facts, we are of the view that this issue requires fresh examination at the end of the Assessing Officer. Accordingly, we set aside the order passed by learned CIT(A) on this issue and restore the same to the file of the Assessing Officer with the direction to examine the issue afresh by providing adequate opportunity of being heard to the assessee.

5.

In the result, appeal filed by the assessee is treated as allowed for statistical purposes.

Order has been pronounced in the Court on 18.10.2016

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