Itxa/241/2013 Of Commissioner Of Income Tax - 2 v. Meditab Specialities Pvt. Ltd

IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.241 OF 2013 Commissioner of Income Tax-2..Appellant.V/s.Meditab Specialities Pvt. Ltd...Respondent. Mr. P. C. Chhotaray, for the Appellant.Mr. Saroj Jadhav i/b. Sanjay Udeshi & Company, for the Respondent. P.C:- CORAM: J.P.DEVADHAR & M.S.SANKLECHA,JJ.DATE : 5[th] MARCH, 2013. In this Appeal by the Revenue for the Assessment Year 2007-08 following questions have been raised for our consideration:- (i)Whether on the facts and in the circumstances of the case and in law, the Tribunal was correct in setting aside the disallowance made under Section 14A by relying on the decision of the Bombay High Court in the case of Godrej & Boyce Mfg. Co. Ltd. v/s. DCIT(2010), 328 ITR 081 (Bom.) when the Department has not accepted the principles laid down by the said decision as evidenced by the SLP filed? (ii)Whether on the facts and in the circumstances of the case and in law, the Tribunal was correct in law by relying on the decision of the Bombay High Court in the case of Godrej & Boyce Mfg. Co. Ltd. v/s. DCIT (2010), 328 ITR 081(Bom.) wherein operation of Rule 8D was made prospective, disregarding the fact that method of working of disallowances provided in Rule 8D has been accepted as a reasonable method in the same judgment? 3Since the Tribunal by the impugned order has restored the matter to the Assessing Officer for a fresh determination of the disallowances under Section 14A of the Income Tax Act, 1961 in the light of the decision of this Court in the matter of Godrej & Boyce Mfg. Co. Ltd. v/s. DCIT (2010), reported in 328 ITR 081(Bom.), we see no reason to entertain the proposed question of law. 4However, we must make it clear that in para 6 of the impugned order, the Tribunal has made certain observations with regard to the deduction and exemption available under Section 80IB and 10AA of the said Act. These observations are beyond the scope of the Appeal filed before the Tribunal. In any view of the matter, the Assessing Officer will independently apply his mind to the issue arising before him on remand and not be influenced by the observations made in para 6 of the impugned order. All contentions are kept open, to be urged before the Assessing Officer. 5Accordingly, appeal is dismissed with no order as to costs. (M.S.SANKLECHA,J.) (J.P.DEVADHAR,J.)