Frigorifico Allana Pvt. Ltd. Vs ITO (ITAT Mumbai)
The ITAT Mumbai disposed of cross appeals for AY 2013-14 arising from the order of Commissioner of Income Tax (Appeals)-2, Mumbai dated 19.12.17. In the assessee’s appeal, the Tribunal considered the submission that investments which had not yielded income during the year should be excluded while computing disallowance under section 14A. Relying on ACIT vrs. Vireet Investments Pvt. Ltd. (2017) 165 ITD 27 com 415, the Tribunal restored the ground to the Assessing Officer for fresh decision, with sufficient opportunity to the assessee, and allowed it for statistical purposes. The second ground was not pressed. In the Revenue’s appeal, the Tribunal dismissed the challenge to restriction of section 14A read with Rule 8D disallowance to exempt income, relying on Joint Investment Pvt. Ltd (ITA No. 117/2015). The Tribunal also dismissed the Revenue’s challenge concerning employees’ contribution to PF and ESIC. It considered sections 43B, 36(1)(va) and 2(24)(x), the payment of Rs.61,42,479/- and the judicial decisions referred to in the order, including CIT vrs. Ghatge Patil Transport Ltd. The Tribunal found no reason to interfere with the CIT(A)’s findings and dismissed the Revenue’s ground. Consequently, the assessee’s appeal was allowed for statistical purposes and the Revenue’s appeal was dismissed with no order as to cost.
