Itxa/1836/2011 Of The Commissioner Of Income Tax-7 v. M/S. The Swastik Safe Deposits And Investments Ltd

sas IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.1836 OF 2011 The Commissioner of Income Tax-7, Mumbai ..Appellant. V/s. M/s. The Swastic Safe Deposits & Investments Ltd. ..Respondent. Mr. Abhay Ahuja for the appellant. Mr. J.D. Mistri, Senior Advocate with A.K. Jasani for the respondent. CORAM : J.P. DEVADHAR AND M.S. SANKLECHA, JJ. M.S. SANKLECHA, JJ. DATED : 21ST MARCH, 2013 P.C. :- 1.In this appeal by the revenue for the assessment year 2004-05, following questions have been raised for our consideration :- (i)Whether on the facts and in the circumstances of the case, the Tribunal, in law, was right in directing to restrict the disallowance u/s.14A to Rs.63,18,043/- as against Rs.1,57,34,827/- worked out by the A.O. and confirmed by the CIT(A) ?Tribunal, in law, was right in directing to restrict the disallowance u/s.14A to Rs.63,18,043/- as against Rs.1,57,34,827/- worked out by the A.O. and confirmed by the CIT(A) ? (ii)Whether on the facts and in the circumstances of the case, the Tribunal, in law, was right in directing the A.O. to follow the principles of disallowance established in Co-ordinate Bench in the earlier years and examine the working and disallow the amount u/s.14A of the Act ? 2.By the impugned order, the Tribunal has restored the proceedings to the assessing officer to work out the disallowance under Section 14A of the Income Tax Act, 1961 (the Act) by following the principles laid down by the Tribunal while disposing of the respondent-assessee's appeal for assessment year 2001-02. The impugned order further directs the assessing officer to examine the working submitted by the respondent-assessee on the basis of the above principles. 3.The grievance of the revenue is that in view of the above directions, the Assessing Officer would be bound by the workings submitted by the respondent-assessee. Therefore, it should be clarified that the Assessing Officer is not bound by the workings submitted by the respondent-assessee in making disallowance under Section 14A of the Act. 4.We find the apprehension of the revenue is unjustified. The impugned order allows the Assessing Officer to arrive at the disallowance only on applying the principles laid down by the Tribunal in the respondent-assessee's own case for assessment year 2001-02. The disallowance has to be arrived at on the touchstone of the principles laid down in its order for assessment year 2001-02. Therefore, the Assessing Officer is not bound by the workings submitted by the respondent-assessee but has to examine the same on the principles already laid by the Tribunal. 4.In these circumstances, we see no reason to entertain the question of law. Accordingly, the appeal is dismissed with no order as to costs. (M.S. SANKLECHA, J.) (J.P. DEVADHAR, J.)