IN INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA no.6027/Mum./2018 (Assessment Year 2012 13) Richie Rich Resorts Ltd. 4th Floor, Ajmera House L.T. Marg, Pathakwadi Appellant Mumbai 400 002 PAN AAACR4959E v/s Income Tax Officer . Respondent Ward 8(1)(2), Mumbai Assessee by None Revenue by Shri Chaudhary Arunkumar Singh Date of Hearing 05.09.2019 Date of Order 25.09.2019 ORDER Aforesaid appeal has been filed by assessee challenging order dated 21st June 2018, passed by learned Commissioner of Income Tax (Appeals) 14, Mumbai, pertaining to assessment year 2012 13. 2. When appeal was called for hearing, no one was present on behalf of assessee to represent case. Accordingly, I proceed to dispose off appeal ex parte qua assessee after hearing 2 Richie Rich Resorts Ltd. learned Departmental Representative and on basis of material on record. 3. Brief facts are, assessee is company. For assessment year under consideration, assessee had filed its return of income on 28th September 2012, declaring loss of ` 15,51,340. Assessment in case of assessee was completed under section 143(3) of Act, vide order dated 27th February 2015, determining total income at ` 14,44,190. After completion of assessment as aforesaid, Assessing Officer passed order under section 154 of Act on 5 th March 2015, revising total income to ` 16,58,480. variation in total income was due to further disallowance to ` 2,26,139, under section 14A r/w rule 8D. Against order passed under section 154 of Act, assessee preferred appeal before first appellate authority. 4. In course of hearing of appeal, learned Commissioner (Appeals) found that in assessment order passed under section 143(3) of Act, Assessing Officer had disallowed expenditure under section 14A r/w rule 8D(2)(i) and under rule 8D(2)(iii). Further, he found that said disallowance made in original assessment order was not contested by assessee by filing any appeal. Whereas, in order passed under section 154 of Act, Assessing Officer had made 3 Richie Rich Resorts Ltd. further disallowance of ` 2,26,139, in respect of assessee s claim of strategic investment which as per decision of Hon'ble Supreme Court in Maxopp Investment Ltd. & Ors. v/s CIT, is not allowable. Thus, learned Commissioner (Appeals) observed that in appeal filed against order passed under section 154 of Act, assessee cannot challenge disallowance made under section 14A in original assessment order. Accordingly, he held that there being no error in computation of income in order passed under section 154 of Act, assessee s appeal is not maintainable. Accordingly, he upheld order passed under section 154 of Act. 5. I have heard learned Departmental Representative and perused material on record. Undisputedly, subject matter of challenge before learned Commissioner (Appeals) is order dated 19 th January 2017, passed under section 154 of Act. only variation made in this order is amount of ` 2,26,139, on account of disallowance of expenditure under section 14A r/w rule 8D. Therefore, only dispute which assessee can raise is with regard to variation made in impugned order passed under section 154 of Act. Whereas, it appears from order of learned Commissioner (Appeals), assessee has even disputed disallowance made under section 14A r/w rule 8D in assessment order passed under section 143(3) of Act against which assessee did not file any appeal. It is further 4 Richie Rich Resorts Ltd. noticed that disallowance under section 14A r/w rule 8D in impugned order passed under section 154 of Act was made since in assessment order, Assessing Officer had excluded strategic investment from average value of investment while computing disallowance. However, as per decision of Hon'ble Supreme Court in Maxopp Investment Ltd. & Ors. (supra), such exclusion cannot be made on account of strategic investment. In view of aforesaid, I do not find any infirmity in order of learned Commissioner (Appeals) on issue. Grounds are dismissed. 6. In result, appeal stands dismissed. Order pronounced in open Court on 25.09.2019 Sd/- SAKTIJIT DEY JUDICIAL MEMBER MUMBAI, DATED: 25.09.2019 Copy of order forwarded to (1) Assessee; (2) Revenue (3) CIT(A) (4) CIT, Mumbai City concerned (5) DR, ITAT, Mumbai (6) Guard file. True Copy By Order Pradeep J. Chowdhury Sr. Private Secretary Assistant Registrar ITAT, Mumbai Richie Rich Resorts Ltd. v. Income-tax Officer, Ward8(1)(2), Mumbai