DCIT, CHENNAI V. Rayala Corporation P Ltd., CHENNAI

ITA 1043/CHNY/2017

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 3963 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-07-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 28-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASISH TRIPATHY
• Keywords: Business income
• Section: 14A

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI . . . , , ' # BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ ITA NO.1043/MDS/2017 & '& / ASSESSMENT YEAR : 2013-14 THE DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 5(1), CHENNAI - 600 034. V. M/S RAYALA CORPORATION PVT. LTD., 144/7, OLD MAHABALIPURAM ROAD, RAYALA TECHNO PARK, 3 RD FLOOR, KOTTIVAKKAM, CHENNAI - 600 041. PAN : AABCR 7230 D ()*/ APPELLANT) (+,)*/ RESPONDENT) )* - . / APPELLANT BY : SHRI ASISH TRIPATHY, JCIT +,)* - . / RESPONDENT BY : SH. SAROJ KUMAR PARIDA, ADVOCAT E / - 0' / DATE OF HEARING : 12.07.2017 12' - 0' / DATE OF PRONOUNCEMENT : 27.07.2017 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST TH E ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-3, CHENNAI , DATED 31.01.2017 AND PERTAINS TO ASSESSMENT YEAR 2013-14. 2. THE FIRST ISSUE ARISES FOR CONSIDERATION IS CLAS SIFICATION OF INCOME SAID TO BE RECEIVED BY THE ASSESSEE ON LETTI NG OUT OF PROPERTY. 2 I.T.A. NO.1043/MDS/17 3. WE HAVE HEARD SHRI ASISH TRIPATHY, THE LD. DEPAR TMENTAL REPRESENTATIVE AND SH. SAROJ KUMAR PARIDA, THE LD.C OUNSEL FOR THE ASSESSEE. IN THE ASSESSEE'S OWN CASE FOR ASSESSMEN T YEAR 2012- 13, THIS TRIBUNAL BY PLACING RELIANCE ON THE JUDGME NT OF APEX COURT, FOUND THAT THE INCOME FROM LETTING OUT THE PROPERTY IS BUSINESS INCOME. IN FACT, THE JUDGMENT OF APEX COURT IS IN THE CASE OF ASSESSEE M/S RAYALA CORPORATION PVT. LTD. V. ACIT I N CIVIL APPEAL NO.6438 OF 2016 DATED 11.08.2016. BY RESPECTFULLY FOLLOWING THE JUDGMENT OF APEX COURT IN THE ASSESSEE'S OWN CASE, THIS TRIBUNAL DO NOT FIND ANY REASON TO INTERFERE WITH THE ORDER OF THE LOWER AUTHORITY AND ACCORDINGLY THE SAME IS CONFIRMED. 4. THE NEXT ISSUE ARISES FOR CONSIDERATION IS DISAL LOWANCE MADE BY THE ASSESSING OFFICER UNDER SECTION 14A OF THE I NCOME-TAX ACT, 1961 (IN SHORT 'THE ACT'). 5. WE HAVE HEARD THE LD. DEPARTMENTAL REPRESENTATIV E AND THE LD.COUNSEL FOR THE ASSESSEE. THE CIT(APPEALS) BY F OLLOWING THIS TRIBUNAL ORDER IN THE ASSESSEE'S OWN CASE, DIRECTED THE ASSESSING OFFICER TO RESTRICT THE DISALLOWANCE UNDER SECTION 14A OF THE ACT TO THE EXTENT OF EXEMPTED INCOME EARNED BY THE ASSESSE E. IN FACT, THE 3 I.T.A. NO.1043/MDS/17 MADRAS HIGH COURT HAS HELD AN IDENTICAL VIEW. THER EFORE, THIS TRIBUNAL DO NOT FIND ANY REASON TO INTERFERE WITH T HE ORDER OF THE LOWER AUTHORITY AND ACCORDINGLY THE SAME IS CONFIRM ED. 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED ON 27 TH JULY, 2017 AT CHENNAI. SD/- SD/- ( ) ( . . . ) (S. JAYARAMAN) (N.R.S. GANESAN) ' / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 4 /DATED, THE 27 TH JULY, 2017. KRI. - +056 76'0 /COPY TO: 1. )* /APPELLANT 2. +,)* /RESPONDENT 3. / 80 () /CIT(A)-3, CHENNAI-34 4. PRINCIPAL CIT- 5, CHENNAI 5. 69 +0 /DR 6. :& ; /GF.