Igarashi Motors India Ltd., CHENNAI V. DCIT, CHENNAI

CO 22/CHNY/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 6282 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 17 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 30-04-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 12-02-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: N VIJAY KUMAR
• Assessee Lawyers: HOMI RAJVANSH
• Section: 14A

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI . . . , . !', $ '% BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ ITA NO.3448/CHNY/2018 & C.O. NO.22/CHNY/2019 (IN I.T.A. NO.3448/CHNY/2018) ' (' / ASSESSMENT YEAR : 2010-11 THE JOINT COMMISSIONER OF INCOME TAX (OSD), CORPORATE CIRCLE 2(2), CHENNAI - 600 034. V. M/S IGARASHI MOTORS INDIA LTD., PLOT NO.B-12 TO B-15, PHASE-II, MEPZ-SEZ, TAMBARAM, CHENNAI - 600 045. PAN : AAACC 1305 R (*+/ APPELLANT) ( RESPONDENT & CROSS-OBJECTOR) *+ , - / APPELLANT BY : SHRI HOMI RAJVANSH, CIT ./*+ , - / RESPONDENT BY : SHRI N. VIJAY KUMAR, CA 0 , 1$ / DATE OF HEARING : 08.04.2019 23( , 1$ / DATE OF PRONOUNCEMENT : 30.04.2019 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER : THE APPEAL OF THE REVENUE IS DIRECTED AGAINST TH E ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) -6, CHENNA I, DATED 28.09.2018 AND PERTAINS TO ASSESSMENT YEAR 2010-11. THE ASSESSEE HAS ALSO FILED CROSS-OBJECTION AGAINST THE VERY SAME ORDER 2 I.T.A. NO.3448/CHNY/18 C.O. NO.22/CHNY/19 OF THE CIT(APPEALS). THEREFORE, WE HEARD THE APPEA L AND THE CROSS- OBJECTION TOGETHER AND DISPOSING THE SAME BY THIS C OMMON ORDER. 2. SHRI HOMI RAJVANSH, THE LD. DEPARTMENTAL REPRESE NTATIVE, SUBMITTED THAT THE CIT(APPEALS) DELETED THE DISALLO WANCE MADE BY THE ASSESSING OFFICER UNDER SECTION 14A OF THE INCO ME-TAX ACT, 1961 (IN SHORT 'THE ACT') BY PLACING RELIANCE ON TH E JUDGMENT OF MADRAS HIGH COURT IN CIT V. CHETTINAD LOGISTICS (P. ) LTD. IN T.C.A. NO. NO.24 OF 2017 DATED 13.03.2017. ACCORDING TO T HE LD. D.R., THE JUDGMENT OF MADRAS HIGH COURT IN CHETTINAD LOGISTIC S (P.) LTD. (SUPRA) WAS NOT ACCEPTED BY THE DEPARTMENT AND A SP ECIAL LEAVE PETITION HAS BEEN FILED BEFORE THE APEX COURT. THE REFORE, ACCORDING TO THE LD. D.R., THE CIT(APPEALS) IS NOT JUSTIFIED IN FOLLOWING THE JUDGMENT OF MADRAS HIGH COURT. 3. WE HEARD SHRI N. VIJAY KUMAR, THE LD. REPRESENTA TIVE FOR THE ASSESSEE ALSO. ADMITTEDLY, NO DIVIDEND INCOME WAS EARNED BY THE ASSESSEE DURING THE YEAR UNDER CONSIDERATION. THE MADRAS HIGH COURT IN CHETTINAD LOGISTICS (P.) LTD. (SUPRA) EXAM INED THIS ISSUE AND FOUND THAT WHEN THE ASSESSEE HAS NOT EARNED ANY EXEMPTED INCOME, THERE CANNOT BE ANY DISALLOWANCE. THIS TRI BUNAL IS OF THE 3 I.T.A. NO.3448/CHNY/18 C.O. NO.22/CHNY/19 CONSIDERED OPINION THAT THIS JUDGMENT OF MADRAS HIG H COURT IS BINDING ON ALL THE AUTHORITIES IN THE STATE OF TAMI L NADU AND PONDICHERRY. A MERE PENDENCY OF SPECIAL LEAVE PETI TION BEFORE THE APEX COURT CANNOT BE A GROUND FOR NOT FOLLOWING THE JUDGMENT OF MADRAS HIGH COURT. THEREFORE, THIS TRIBUNAL DO NOT FIND ANY REASON TO INTERFERE WITH THE ORDER OF THE LOWER AUTHORITY AND ACCORDINGLY THE SAME IS CONFIRMED. 4. THE ASSESSEE HAS FILED THE CROSS-OBJECTION ONLY TO SUPPORT THE ORDER OF THE CIT(APPEALS), THEREFORE, THE CROSS -OBJECTION BECOMES INFRUCTUOUS. 5. IN THE RESULT, BOTH THE APPEAL OF THE REVENUE AS WELL AS THE CROSS-OBJECTION OF THE ASSESSEE STAND DISMISSED. ORDER PRONOUNCED IN THE COURT ON 30 TH APRIL, 2019 AT CHENNAI. SD/- SD/- (. !') ( . . . ) (S. JAYARAMAN) (N.R.S. GANESAN) $ / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 5 /DATED, THE 30 TH APRIL, 2019. 4 I.T.A. NO.3448/CHNY/18 C.O. NO.22/CHNY/19 KRI. , .167 87(1 /COPY TO: 1. *+/ APPELLANT 2. ./*+/ RESPONDENT 3. 0 91 () /CIT(A)-6, CHENNAI 4. PRINCIPAL CIT-2, CHENNAI 5. 7: .1 /DR 6. ;' < /GF.