Daspalla Resorts Limited, Visakhapatnam V. The Assistant Commissioner of Income Tax, Circle-3(1)., Visakhapatnam

CO 74/VIZ/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 1977 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 4 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 28-06-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Appeal Filed On: 24-06-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SUMAN MALIK
• Assessee Lawyers: C V S MURTHY
• Keywords: Tax effect
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO , HONBLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH , HONBLE ACCOUNTANT MEMBER ITA NO S . 554 & 55 5 / VIZ /201 8 (ASST. YEAR : 20 13 - 14 & 2014 - 15 ) ACIT, CIRCLE - 3(1), VISAKHAPATNAM. V S . M/S. DASPALLA HOTELS PVT. LTD., D.NO. 28 - 2 - 248, SURYABAGH, VISAKHAPATNAM. PAN NO. A A ACD 7819 H (APPELLANT) (RESPONDENT) C.O.NOS. 71 & 72/VIZ/2019 (ARISING OUT OF ITA NO S . 554 & 555 / VIZ /201 8 ) (ASST. YEAR : 20 13 - 14 & 2014 - 15 ) M/S. DASPALLA HOTELS PVT. LTD., D.NO. 28 - 2 - 248, SURYABAGH, VISAKHAPATNAM. VS. ACIT, CIRCLE - 3(1), VISAKHAPATNAM. PAN NO. A A ACD 7819 H (APPELLANT) (RESPONDENT) ITA NO S . 556 & 557 / VIZ /201 8 (ASST. YEAR : 20 13 - 14 & 2014 - 15 ) ACIT, CIRCLE - 3(1), VISAKHAPATNAM. VS. M/S. DASPALLA RESORTS LTD., D.NO. 28 - 2 - 248, SURYABAGH, VISAKHAPATNAM. PAN NO. AA A CD 78 21 L (APPELLANT) (RESPONDENT) 2 ITA NO S . 554 - 557/VIZ/2018 C.O.NOS.71 - 74/VIZ/2019 ( M/S. DASPALLA HOTELS PVT. LTD. & ANO. ) C.O.NOS. 73 & 74/VIZ/2019 (ARISING OUT OF ITA NO S . 556 & 557 / VIZ /201 8) (ASST. YEAR : 20 13 - 14 & 2014 - 15 ) M/S. DASPALLA RESORTS LTD., D.NO. 28 - 2 - 248, SURYABAGH, VISAKHAPATNAM. VS. ACIT, CIRCLE - 3(1), VISAKHAPATNAM. PAN NO. AAACD 7821 L (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI C.V.S. MURTHY C A. DEPARTMENT BY : SMT. SUMAN MALIK SR. DR DATE OF HEARING : 25 / 0 6 /201 9 . DATE OF PRONOUNCEMENT : 2 8 / 0 6 /201 9 . O R D E R PER D.S. SUNDER SINGH , ACCOUNTANT MEMBER TH E S E APPEAL S BY THE REVENUE AND THE CROSS OBJECTIONS BY THE DIFFERENT ASSESSEE S ARE DIRECTED AGAINST THE SEPARATE ORDER S OF COMMISSIONER OF INCOME TAX (APPEALS) - 1 , VISAKHAPATNAM , ALL DATED 20 /0 8 /201 8 FOR THE ASSESSMENT YEARS 20 13 - 14 & 20 14 - 1 5 . 2. WHEN THESE APPEALS ARE TAKEN UP FOR HEARING, LD. AR OF THE ASSESSEE HAS SUBMITTED THAT THE TAX EFFECT INVOLVED IN THESE APPEAL IS BELOW RS. 20.00 LAKHS AND AS PER THE CBDT CIRCULAR NO. NO. 03 /201 8 , DATED 11.07 .201 8, THESE APPEALS ARE NOT MAINTAINABLE . 3 ITA NO S . 554 - 557/VIZ/2018 C.O.NOS.71 - 74/VIZ/2019 ( M/S. DASPALLA HOTELS PVT. LTD. & ANO. ) 3 . LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE GROUNDS OF APPEAL . 4 . WE FIND THAT T HE GROUNDS RAISED BY THE DEPARTMENT DO NOT COME UNDER THE EXCEPTIONS PROVIDED BY THE CBDT CIRCULAR NO. 03 /201 8 , DATED 11.07 .201 8. EVEN OTHERWISE ON MERITS ALSO , THE ISSUES RAISED IN THESE APPEALS RELATING TO THE DISALLOWANCE U/SEC. 14A R.W.R. 8D AND ALSO DISALLOWANCE RELATING TO THE PF CONTRIBUTION U/SEC. 36(1)(VA) R.W.S. 2(24)(X) OF THE ACT ARE COVERED IN FAVOUR OF THE ASSESSEE BY THE ORDER S OF THIS TRIBUNAL AS RELIED UPON BY THE LD. CIT(A) . THE ISSUE RELATING TO THE DISALLOWANCE U/SEC. 14A IS COVERED BY THE DECISION OF THIS TRI BUNAL IN THE CASE OF DCIT VS. RADHA KRISHNA AUTOMOBILES IN ITA NO.13/VIZ/2013 , DATED 22/11/2017 . SIMILARLY , THE ISSUE WITH REGARD TO DISALLOWANCE U/SEC. 36(1)(VA) IS ALSO COVERED BY THE DECISION OF THIS TRIBU N AL IN ASSESSEES OWN CASE FOR THE A.Y. 2012 - 13 , T HE LD. CIT(A) ALLOWED THE APPEAL S OF THE ASSESSEE BY FOLLOWING THE DECISION S OF THIS TRIBUNAL , HENCE, WE DO NOT SEE ANY INFIRMITY IN THE ORDER S OF THE LD. CIT(A) AND THE SAME ARE UPHELD. THUS, THE APPEALS FILED BY THE REVENUE ARE DISMISSED. 5. SO FAR AS CROSS OBJECTIONS FILED BY THE ASSESSEE S ARE CONCERNED , DEFECTS POINTED OUT BY THE REGISTRY HAVE NOT BEEN CURED , THOUGH THE NOTICE S WERE SERVED T O THEM. IN VIEW OF THE 4 ITA NO S . 554 - 557/VIZ/2018 C.O.NOS.71 - 74/VIZ/2019 ( M/S. DASPALLA HOTELS PVT. LTD. & ANO. ) ABOVE, THE CROSS OBJECTIONS FILED BY THE ASSESSEES ARE DISMISSED IN LIMINE . 6 . IN THE RESULT, APPEAL S FILED BY THE REVENUE AND THE C.OS. FILED BY THE ASSESSEES ARE DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON TH IS 2 8 T H DAY OF JUNE , 201 9 . S D / - S D / - (V. DURGA RAO) ( D.S. SUNDER SINGH ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 2 8 T H JUNE , 201 9 . VR/ - COPY TO: 1. THE ASSESSEE. A) M/S. DASPALLA HOTELS PVT. LTD. B) M/S. DASPALLA RESORTS LTD. BOTH ARE RESIDENTS OF D.NO. 28 - 2 - 248, SURYABAGH, VISAKHAPATNAM. 2. THE REVENUE ACIT, CIRCLE - 3(1), VISAKHAPATNAM. 3. THE PR. CIT - 1 , VISAKHAPATNAM. 4. THE CIT(A) - 1, VISAKHAPATNAM. 5. THE D.R . , VISAKHAPATNAM. 6. GUARD FILE. BY ORDER (VUKKEM RAMBABU) SR. PRIVATE SECRETARY, ITAT, VISAKHAPATNAM.