Pharma Prodctions P.Ltd , vs Assessee

BEFORE HON'BLE S/SHRI H.L. KARWA, PRESIDENT AND B.R.BASKARAN (AM) सव ी एच.एल. कावा , अ य एवं बी.आर.बा करन, लेखा सद य

MISC.APPLICATION No.421/Mum/2014 arising out of I.T.A. No.2481/Mum/2013 ( नधा रण वष / Assessment Year :2007-08)

M/s Dharma Productions Pvt. बनाम/ Dy. Commissioner of Income Ltd., Vs. Tax, Central Circle-31, 29, Jains Arcade, Aaykar Bhavan, 2nd Floor, 14th Road, Mumbai Khar (W), Mumbai-400052 (अपीलाथ /Applicant) .. (!"यथ / Respondent) थायी ले ख ा सं . /जीआइआर सं . /PAN/G IRNo.: AAACD3889K

अपीलाथ ओर से / Appellant by : Ms.Pallavi Gudka !"यथ क' ओर से/Respondent by : Shri Pavan Kumar Birla

सन ु वाई क' तार+ख / Date of Hearing : 13.2.2015 घोषणा क' तार+ख /Date of Pronouncement : 13.2.2015

आदे श / O R D E R

Per B.R.BASKARAN, Accountant Member:

The assessee has filed this Misc. Application pointing out that the

Ground No.2 raised by the assessee in assessment year 2007-08 has not

been disposed of by the Bench while passing the order on 29.10.2014.

2. We heard the parties and perused the order. We notice merit in the

present petition filed by the assessee as we notice that the Tribunal has

not disposed of the ground no.2 urged by the assessee in the appeal filed

for assessment year 2007-08.

3. Accordingly, we allow Misc. Application filed by the assessee.

MA No.421/M/2014 2

4. With the consent of both the parties, the ground no.2 urged in AY

2007-08 was taken up for hearing.

5. The Ground No.2 reads as under :

"On the facts and in the circumstances of the case and in law, the Hon'ble CIT(A) erred in confirming the disallowance made by the ld. AO of Rs.3,67,258/- u/s 14A read with Rule 8D of the IT Act as against a dividend income of Rs.3,66,382/-. The appellant prays that the said disallowance is unjustified and may pleas be deleted."

6. We heard the parties on this issue and perused the record. We

notice that the AO has computed the disallowance u/s 14A of the Act

against the dividend income of Rs.3,66,382/- received by the assessee by

application of provisions of Rule 8D of the IT Rules, 1962. The present

assessment year being assessment year 2007-08, the provisions of Rule

8D shall not be applicable as held by the Hon'ble Jurisdictional High Court

in the case of Godrej Boyce Mfg. Co. Ltd (328 ITR 81). In the above said

decision, the Hon'ble Jurisdictional High Court has held that for the year

under consideration, the disallowance has to be computed in a reasonable

manner. Hence, we are of the view that this issue requires fresh

consideration at the end of the AO. Accordingly, we set aside the order of

ld.CIT(A) on this issue and restore the same to the file of the AO with a

direction to compute the disallowance u/s 14A of the Act in a reasonable

manner as held by the Hon'ble Bombay High Court in the case of Godrej

Boyce Mfg. Co. Ltd (supra).

MA No.421/M/2014 3

7. In the result, the Misc.Application filed by the assessee is allowed

and Ground No.2 taken in appeal is treated as allowed for statistical

purposes.

The above order was pronounced in the open court on 13th Feb, 2015.

घोषणा खुले .यायालय म0 1दनांकः 13th Feb, 2015 को क' गई ।

sd sd

(एच.एल. कावा / H.L. KARWA) (बी.आर. बा करन,/ B.R. BASKARAN) अ य / PRESIDENT लेखा सद य/Accountant Member मब ंु ई Mumbai: 13th Feb,2014.

व. न.स./ SRL , Sr. PS

आदे श क त ल प अ!े षत/Copy of the Order forwarded to : 1. अपीलाथ / The Appellant 2. !"यथ / The Respondent. 3. आयकर आय8 ु त(अपील) / The CIT(A)- concerned 4. आयकर आय8 ु त / CIT concerned

5. 9वभागीय ! त न;ध, आयकर अपील+य अ;धकरण, मब ुं ई / DR, ITAT, Mumbai concerned

6. गाड फाईल / Guard file.

आदे शानस ु ार/ BY ORDER, true copy सहायक पंजीकार (Asstt. Registrar) आयकर अपील+य अ;धकरण, मुंबई /ITAT, Mumbai