Kamarajar Port Limited, CHENNAI V. DCIT, CHENNAI

ITA 1142/CHNY/2016

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 3996 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-11-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 10-10-2016
• Assessment Year: 2011-2012
• Appeal Filed On: 27-04-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUPRIYO PAL
• Assessee Lawyers: K MEENATCHI SUNDARAM
• Section: 14A; 115JB

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI . . . , !' .$%$&, ( ') BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER ./ ITA NOS.1140, 1141 & 1142/MDS/2016 & +& / ASSESSMENT YEARS : 2007-08, 2010-11 & 2011-12 M/S KAMARAJAR PORT LIMITED, C/O SUNDARAM & NARAYANAN, CHARTERED ACCOUNTANTS, 18 BALAIAH AVENUE, LUZ CHURCH ROAD, MYLAPORE, CHENNAI - 600 004. PAN : AAACE 9013 G V. THE DEPUTY COMMISSIONER OF INCOME TAX, COMPANY CIRCLE 2(1), CHENNAI - 600 034. (-./ APPELLANT) (/0-./ RESPONDENT) -. 1 2 / APPELLANT BY : SHRI K. MEENATCHI SUNDARAM, CA /0-. 1 2 / RESPONDENT BY : SHRI SUPRIYO PAL, JCIT 3 1 4( / DATE OF HEARING : 10.10.2016 56+ 1 4( / DATE OF PRONOUNCEMENT : 23.11.2016 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: ALL THE THREE APPEALS OF THE ASSESSEE ARE DIRECT ED AGAINST THE RESPECTIVE ORDERS OF THE COMMISSIONER OF INCOME TAX (APPEALS)-8, CHENNAI, DATED 29.02.2016, FOR THE ASS ESSMENT YEARS 2007-08, 2010-11 AND 2011-12. SINCE COMMON ISSUE A RISES FOR 2 I.T.A. NOS.1140 TO 1142/MDS/16 CONSIDERATION IN ALL THE THREE APPEALS, WE HEARD AL L THESE APPEALS TOGETHER AND DISPOSING OF THE SAME BY THIS COMMON O RDER. 2. THE ONLY ISSUE ARISES FOR CONSIDERATION IN ALL T HE THREE APPEALS IS WITH REGARD TO ADDITION OF DISALLOWANCE MADE UNDER RULE 8D OF INCOME-TAX RULES, 1962 WHILE COMPUTING BOOK P ROFIT. 3. SHRI K. MEENATCHI SUNDARAM, THE LD. REPRESENTATI VE FOR THE ASSESSEE, SUBMITTED THAT THIS TRIBUNAL IN THE ASSES SEE'S OWN CASE FOR ASSESSMENT YEAR 2012-13, EXAMINED THIS ISSUE AN D BY PLACING RELIANCE ON THE EARLIER DECISION OF THIS BENCH OF T HE TRIBUNAL IN BEACH MINERALS COMPANY PVT. LTD. V. ACIT (64 TAXMAN N.COM 218), FOUND THAT ANY DISALLOWANCE MADE UNDER SECTION 14A OF THE INCOME-TAX ACT, 1961 (IN SHORT 'THE ACT') READ WITH RULE 8D CANNOT BE ADDED TO THE BOOK PROFIT. IN VIEW OF THIS DECIS ION OF THE TRIBUNAL IN THE ASSESSEE'S OWN CASE FOR ASSESSMENT YEAR 2012 -13, THE CIT(APPEALS) IS NOT JUSTIFIED IN CONFIRMING THE ORD ER OF THE ASSESSING OFFICER. 4. WE HAVE HEARD SHRI SUPRIYO PAL, THE LD. DEPARTME NTAL REPRESENTATIVE ALSO. THE LD. D.R. HAS VERY FAIRLY CONCEDED THAT THIS 3 I.T.A. NOS.1140 TO 1142/MDS/16 ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE BY THE O RDER OF THIS TRIBUNAL FOR ASSESSMENT YEAR 2012-13. 5. WE HAVE CONSIDERED THE SUBMISSIONS ON EITHER SID E AND PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. AS RIGHTLY SUBMITTED BY THE LD. DEPARTMENTAL REPRESENTATIVE AN D THE LD.COUNSEL FOR THE ASSESSEE, THE VERY SAME ISSUE WA S CONSIDERED BY THIS TRIBUNAL AND THIS TRIBUNAL FOUND THAT THE D ISALLOWANCE MADE UNDER RULE 8D CANNOT BE ADDED WHILE COMPUTING BOOK PROFIT UNDER SECTION 115JB OF THE ACT. IN VIEW OF THIS ORDER OF THE TRIBUNAL, THE ASSESSING OFFICER IS NOT JUSTIFIED IN ADDING THE AM OUNT DISALLOWED UNDER SECTION 14A OF THE ACT WHILE COMPUTING BOOK P ROFIT. BY FOLLOWING THE ORDER OF THIS TRIBUNAL IN THE ASSESSE E'S OWN CASE FOR ASSESSMENT YEAR 2012-13 AND FOR THE REASONS STATED THEREIN, WE ARE UNABLE TO UPHOLD THE ORDERS OF THE LOWER AUTHOR ITIES. ACCORDINGLY, THE ORDERS OF THE LOWER AUTHORITIES AR E SET ASIDE AND THE ASSESSING OFFICER IS DIRECTED NOT TO ADD THE DISALL OWANCE MADE UNDER SECTION 14A OF THE ACT WHILE COMPUTING BOOK P ROFIT UNDER SECTION 115JB OF THE ACT. 6. IN THE RESULT, THE APPEALS FILED BY THE ASSESSEE ARE ALLOWED. 4 I.T.A. NOS.1140 TO 1142/MDS/16 ORDER PRONOUNCED ON23RD NOVEMBER, 2016 AT CHENNAI . SD/- SD/- ( !' .$%$& ) ( . . . ) (ABRAHAM P. GEORGE) (N.R.S. GANESAN) ( / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 8 /DATED, THE 23 RD NOVEMBER, 2016. KRI. 1 /49: ;:+4 /COPY TO: 1. -. /APPELLANT 2. /0-. /RESPONDENT 3. 3 <4 () /CIT(A)-8, CHENNAI 4. PRINCIPAL CIT, CHENNAI-4, CHENNAI 5. := /4 /DR 6. >& ? /GF.