Issue of Jurisdictional High Court in the case of Godrej Boyce Mfg. Co. Ltd - Applicability of rule 8D

Last updated: 05 October 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
Facts: The department has filed this appeal for assessment year 2007-08 against order dated 2.11.2010 of ld CIT(A)-1, Mumbai. None appeared on behalf of assessee in spite of notice served through ld D.R. as per the report of the Assessing Officer dated 20.7.2012 placed on record. Hence, we proceed to dispose of the appeal after considering submissions of ld D.R. and on the basis of material available on record. Issues: 1. Whether on the facts and circumstances of the case and in law, ld CIT(A) is justified in rejecting the AO’s working of expenses u/s.14A as per Rule 8D 2. Whether on the facts and circumstances of the case and in law, ld CIT(A) erred in deleting the disallowance of loss from share trading business amounting to Rs.3,93,339 and from future and options commodity business amounting to Rs.6,58,751. Imp Observations: 1. On consideration of orders of authorities below, we agree with ld CIT(A) that Rule 8D is not applicable to assessment year under consideration as held by Hon’ble Jurisdictional High Court in the case of Godrej Boyce Mfg. Co. Ltd (supra). 2. During the course of hearing, ld D.R. relied on order of AO and submitted that assessee filed new documents before ld CIT(A) which were not made available to the AO. Held: Appeal filed by department is allowed in part.

Citation :
IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH ‘A’ BENCH BEFORE SHRI B.R.MITTAL (JUDICIAL MEMBER) AND SHRI B.RAMAKOTAIAH (ACCOUNTANT MEMBER) ITA No.3075/Mum/2011 Assessment Year: 2007 -08 ITO 1(1)-1, Aayakar Bhavan, M.K. Road, Mumbai. (Appellant) Vs. M/s. Astor Corporation Pvt Ltd., Kasturi Building, 171/172, J Tata Road, Mumbai-20 PA No.AAECA 0015G (Respondent) Appellant by: Ms Neeraj Pradhan Respondent by: None Date of hearing: 21.8.2012 Date of pronouncement: 5. 9.2012