,                  ""          
      IN THE INCOME TAX APPELLATE TRIBUNAL "C" BENCH, MUMBAI

BEFORE HON'BLE S/SHRI H.L. KARWA, PRESIDENT AND B.R.BASKARAN (AM)
         .. ,                            .. ,   
                   ./I.T.A. No.6163/Mum/2012
                 (   / Assessment Year :2009-10)

  Chintan Babaria,                /        Jt. Commissioner of Income Tax
  98, Princes Street,             Vs.      -14(3),
  Mansoor Building,                        Earnest House, 3rd Floor,
  Mumbai-400002                            Nariman Point,
                                           Mumbai-400021
        ( /Appellant)              ..      (    / Respondent)


                . /   . / PAN/GIRNo. :AICPB4114G

            / Appellant by              : Shri Nishit Gandhi
              /Respondent by              Shri Neil Philip


              / Date of Hearing
                                                 :31.12.2014
             /Date of Pronouncement : 16.01.2015


                                / O R D E R

 Per B.R.BASKARAN, Accountant Member:

       The assessee has filed this appeal challenging the order dated 25-
 06-2012 passed by ld CIT(A)-25, Mumbai and it relates to the assessment
 year 2009-10. The assessee is aggrieved by the decision of Ld CIT(A) in
 confirming the disallowance made u/s 14A of the Act.

 2.    We have heard the parties and perused the record. The contention
 of the assessee is that his own funds are in excess of the loan funds.
 Further the loan funds have been taken for specific purposes, i.e., for
 purchase of trucks and lorries, since the assessee is a transport operator.
 He further submitted that the interest expenses claimed by the assessee
 relate to the loan taken for purchase of trucks and lorries. Accordingly, he
                                                                     6163/M/2012
                                     2







submitted that there is no requirement to make any disallowance out of
interest expenditure u/s 14A of the Act.
3.    A perusal of the financial statements filed by the assessee in the
paper book would show that the assessee has claimed interest expenses
relating to the loan taken for purchase of trucks and lorries. Hence we
find merit in the submissions of the assessee. Accordingly, we hold that
the interest expenditure is not required to be disallowed u/s 14A of the
Act. With regard to the disallowance of administrative expenses, the Ld
A.R did not press the same in view of the smallness of the amount.
Accordingly we confirm the disallowance of administrative expenses made
u/s 14A of the Act. The order of Ld CIT(A) stands modified accordingly.






4.    In the result, the appeal of the assessee is partly allowed.

      The above order was pronounced in the open court on 16 th
Jan,2015.
           16                        th Jan 2015    
      sd                                           sd

(.. / H.L. KARWA)                          (..  ,/ B.R. BASKARAN)
  / PRESIDENT                                /Accountant Member
  Mumbai: 16th Jan, 2015.


. ../ SRL , Sr. PS

        /Copy of the Order forwarded to :
1.  / The Appellant
2.  / The Respondent.
3.     () / The CIT(A)- concerned
4.      / CIT concerned
5.      ,     ,                   /
     DR, ITAT, Mumbai concerned
6.     / Guard file.


                                                             / BY ORDER,
            true copy
                                                (Asstt. Registrar)
                                               ,  /ITAT, Mumbai