Telangana State Power Generation Corporation Limited , Hyderabad V. Dy. Commissioner of Income Tax , Circle-2(2), Hyderabad

CO 26/Hyd/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 9229 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 4 month(s) 25 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 17-03-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB-B
• Next Hearing Date: 10-02-2021
• Assessment Year: 2015-2016
• Appeal Filed On: 22-10-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: Y.V.S.T. SAI
• Assessee Lawyers: M. CHANDRAMOULESWARA RAO
• Keywords: Earning of tax free income; Rule 8D
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER I.T.A. NO. 945/HYD/2019 & C.O.NO.26/HYD/2019 ASSESSMENT YEAR: 2015-16 DCIT, CIRCLE-2(2), HYDERABAD VS M/S.TELANGANA STATE POWER GENERATION CORPORATION LIMITED, HYDERABAD [PAN: AAFCT0257Q] (APPELLANT) (RESPONDENT /CROSS - OBJECTOR ) FOR REVENUE : SHRI Y.V.S.T.SAI, CIT-DR FOR ASSESSEE : SHRI M.CHANDRAMOULESWARA RAO, AR DATE OF HEARING : 10-02-2021 DATE OF PRONOUNCEMENT : 17-03-2021 O R D E R PER S.S.GODARA, J.M. : THIS REVENUES APPEAL AND ASSESSEES CROSS-OBJECTIO NS FOR AY.2015-16 ARISE FROM THE CIT(A)-2, HYDERABADS ORDE R DATED 27-03-2019 PASSED IN CASE NO.10606/2017-18/CIT(A)-2 , IN PROCEEDINGS U/S.143(3) OF THE INCOME TAX ACT, 1961 [I N SHORT, THE ACT]. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. IT APPEARS AT THE OUTSET THAT THERE IS NO DIVIDEND INC OME DERIVED ON ASSESSEES PART IN THE RELEVANT PREVIOUS Y EAR AS PER ITA NO. 945/HYD/2019 C.O.NO.26/HYD/2019 :- 2 -: ITS COMPUTATION SO AS TO JUSTIFY SEC.14A R.W.R.8D DISALL OWANCE OF RS.9,40,42,000/- IN ISSUE; CASE LAW I. CIT VS. CHETTINAD LOGISTICS PVT. LTD., [80 TAXMANN.COM 221] (MADRAS); II. CIT VS. CORRTECH ENERGY PVT. LTD., [223 TAXMAN 130] (GUJ); III. CHEMINVEST LTD., VS. CIT (2015) [378 ITR 33] (DEL) HOLDS THAT SECTION 14A READ WITH RULE 8D APPLIES ONLY IN RELATION TO AN ASSESSEES EXEMPT INCOME AND NOT OTHERWIS E. THERE IS NO DISPUTE THAT THE CIT(A) HAS APPLIED THE VER Y REASONING ONLY FOR DELETING THE IMPUGNED DISALLOWANC E. LOWER APPELLATE FINDINGS TO THIS EFFECT ARE UPHELD THEREFORE. THE REVENUE FAILS IN THIS APPEAL ITA NO.945/HYD/2019 THE REFORE. 3. THE ASSESSEES CROSS OBJECTION(S) NO.26/HYD/2019 SUPPORTING THE CIT(A)S FINDING UNDER CHALLENGE STAND RENDERED INFRUCTUOUS. 4. THE REVENUES APPEAL IN ITA NO.945/HYD/2019 IS DISMISSED AND THE ASSESSEES CROSS OBJECTION, C.O.NO.26/HYD/2019 IS DISMISSED AS RENDERED INFRUCT UOUS. A COPY OF THIS COMMON ORDER BE PLACED IN THE RESPECTIVE CASE FILES. ORDER PRONOUNCED IN THE OPEN COURT ON 17 TH MARCH, 2021 SD/- SD/- (LAXMI PRASAD SAHU) (S.S.GO DARA) ACCOUNTANT MEMBER JUDICIAL MEM BER HYDERABAD, DATED: 17-03-2021 TNMM ITA NO. 945/HYD/2019 C.O.NO.26/HYD/2019 :- 3 -: COPY TO : 1.THE DCIT, CIRCLE-2(2), HYDERABAD. 2.M/S.TELANGANA STATE POWER GENERATION CORPORATION LIMITED, 3 RD FLOOR, A-BLOCK, VIDYUT SOUDHA, KHAIRATABAD, HYDERABAD. 3.CIT(APPEALS)-2, HYDERABAD. 4.PR.CIT-2, HYDERABAD. 5.D.R. ITAT, HYDERABAD. 6.GUARD FILE.