Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
 
Open DEMAT Account with in 24 Hrs and start investing now!
« From the Courts »
Open DEMAT Account in 24 hrs
 Karnataka High Court restrains Bengaluru-based Institute of Chartered Tax Practitioners India from enrolling candidates for its courses
 Attachment on Cash Credit of Assessee under GST Act: Delhi HC directs Bank to Comply Instructions to Vacate
 Income Tax Addition Made Towards Unsubstantiated Share Capital Is Eligible For Section 80-IC Deduction: Delhi High Court
 Inordinate delay in income tax appeal hearings
 Income Tax leviable on Tuition Fee in the Year of Rendering of Services: ITAT
 Supreme Court invoked its power under Article 142 of Constitution to validate notices issued under section 148 as notices issued under section 148A. However the same shall be subject to amended provisions of section 149.
 ITAT refuses to stay tax demand on former owner of Raw Pressery brand
 Bombay HC sets aside rejection of refund claims by GST authorities
 [Income Tax Act] Faceless Assessment Scheme does not take away right to personal hearing: Delhi High Court
 Rajasthan High Court directs GST Authority to Unblock Input Tax Credit availed in Electronic Credit Ledger
 Sebi-taxman fight over service tax dues reaches Supreme Court

Jayantilal Khandwala & Sons 201,Stock Exchange, Dalal Strt. Fort, Mumbai 400023 Vs Income Tax Officer 12(1)(4) Aayakar Bhavan, MK Road Mumbai 400020
June, 07th 2012
                           ITA Nos 4162 3707 4931 and 6044 Jayantilal Khandwala & Sons-J Bench


            IN THE INCOME TAX APPELLATE TRIBUNAL
                       "J" Bench, Mumbai

       Before Shri B. Ramakotaiah, Accountant Member and
                Shri S.S. Godara, Judicial Member

                     ITA Nos.4162/Mum/2008
                     (Assessment years: 2000-01)

Jayantilal Khandwala & Sons                   Income Tax Officer 12(1)(4)
201,Stock Exchange, Dalal Strt.               Aayakar Bhavan, MK Road
                                     Vs
Fort, Mumbai 400023                           Mumbai 400020
PAN No. AAAF 4525 F
(Appellant)                                   (Respondent)

                   Assessee by:   Shri D. Bhaskara Rao,
                   Department by: Shri D.S.Sunder Singh, DR

                   Date of Hearing:                       28/05/2012
                   Date of Pronouncement:                 06/06/2012

                              ORDER

 Per B. Ramakotaiah, A.M.

       This is an assessee's appeal in which assessee raised four
 grounds on the issue of section 14A. AO on noticing that assessee
 had earned dividend income of `1,54,80,674/- considered an
 amount of 5% as expenses towards earning dividend income which
 was exempt. Accordingly he disallowed an amount of `.7,74,033/-.
 2.    Before the CIT (A) it was submitted that assessee was
 maintaining separate ledger accounts with reference to separate
 expenses under each head of income and assessee had both shares
 in trading account as well as investment a/c and the disallowance
 of 5% expenditure is arbitrary and excessive. The CIT (A) upheld the
 estimation of expenses and confirmed the action of AO.

 3.    Before us the learned Counsel submitted that assessee
 income included short term capital gain, long term capital gain and
 also business income and the dividend was earned both under
 trading a/c as well as investment a/c. It was submitted that even
 though the disallowance per se is not disputed, what is disputed is
 the quantum of disallowance. The learned DR relied on the orders of
 the CIT (A).
                                   Page 1 of 2





                         ITA Nos 4162 3707 4931 and 6044 Jayantilal Khandwala & Sons-J Bench


4.    We have considered the issue. Considering the facts of the
case and the amount of dividend earned, we are of the opinion that
there is no need to estimate the expenditure at 5% on the dividend
earned. It was assessee's submissions that the dividend income was
earned both on the shares held in trading a/c as well as in
investment a/c. However, the learned Counsel fairly admitted that
they could not bifurcate the dividend income earned on the above
two accounts. Considering the above facts, we are of the view that
the disallowance of 2% of the amount, which the ITAT is
consistently considering in a number of cases, would meet the ends
of justice. Accordingly AO is directed to disallow only 2% of the
gross dividend income as expenditure relatable to earning exempt
income under section 14A. Accordingly this ground is partly
allowed.

5.    In the result the appeal is partly allowed.

      Order pronounced in the open court on 6th June, 2012.

             Sd/-                                       Sd/-
         (S.S.Godara)                             (B. Ramakotaiah)
       Judicial Member                           Accountant Member


Mumbai, dated 6th June, 2012.
Vnodan/sps
Copy to:
  1. The Appellant
  2. The Respondent
  3. The concerned CIT(A)
  4. The concerned CIT
  5. The DR, "J" Bench, ITAT, Mumbai


                               By Order




                        Assistant Registrar
                   Income Tax Appellate Tribunal,
                     Mumbai Benches, MUMBAI




                                   Page 2 of 2





Home | About Us | Terms and Conditions | Contact Us
Copyright 2025 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting