Income Tax Officer, Ward-2(2), Hyderabad V. GMR Aerospace Engineering Co.Ltd,(Formerly known as MAS GMR Aerospace Engineering Limited ), Hyderabad

ITA 1188/Hyd/2018

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 2743 (ITAT-HYDERABAD)
• Duration Of Justice: 3 year(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-06-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB-A
• Next Hearing Date: 08-11-2021
• Assessment Year: 2013-2014
• Appeal Filed On: 06-06-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M NARMADA
• Assessee Lawyers: A V RAGHURAM
• Keywords: Rule 8D
• Section: 14A; 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER I.T.A. NO. 1188/HYD/2018 ASSESSMENT YEAR: 2013-14 INCOME TAX OFFICER, WARD-2(2), HYDERABAD VS M/S.GMR AEROSPACE ENGINEERING CO. LTD., (FORMERLY KNOWN AS MAS GMR AEROSPACE ENGINEERING LIMITED), HYDERABAD [PAN: AACCD8269K] (APPELLANT) (RESPONDENT) FOR REVENUE : SMT. M.NARMADA, DR FOR ASSESSEE : SHRI A.V.RAGHURAM, AR DATE OF HEARING : 21-06-2021 DATE OF PRONOUNCEMENT : 22-06-2021 O R D E R PER S.S.GODARA, J.M. : THIS REVENUES APPEAL FOR AY.2013-14 ARISES FROM THE CIT(A)-4, HYDERABADS ORDER DATED 12-03-2018 PASSED IN CASE NO.0197/2016-17/ACIT,CIR-16(2)/CIT(A)-4/HYD/17-18, 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. AT THE OUTSET, WE NOTICE THAT THIS REVENUES APPEAL SUFFERS FROM DELAY OF 05 DAYS AS ATTRIBUTABLE TO THE RE ASONS MENTIONED IN THE PETITION/AFFIDAVIT AND ON ACCOUNT OF N O OBJECTION FROM ASSESSEES SIDE. THIS DELAY STANDS CO NDONED THEREFORE. ITA NO. 1188/HYD/2018 :- 2 -: 3. THE REVENUE HAS RAISED THE FOLLOWING SUBSTANTIVE GROUNDS IN THE INSTANT APPEAL: 1. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE C ASE, THE CIT(A) IS CORRECT IN LAW IN DELETING THE ADDITION MADE ON ACC OUNT OF DISALLOWANCE U/S.14A ON THE GROUND THAT NO EXEMPT I NCOME WAS RECEIVED DURING THE PREVIOUS YEAR WHICH IS AGAINST THE CBDT CIRCULAR NO.5/2014. 2.ANY OTHER GROUND THAT MAY URGE DURING THE COURSE OF APPELLATE PROCEEDINGS. 4. COMING TO THE SOLE ISSUE OF SECTION 14A R.W. RULE 8D DISALLOWANCE OF RS.2,10,03,330/-, LEARNED AUTHORISED REPRESENTATIVE SUBMITTED THAT SINCE THERE IS NO DIVIDEND INCOME EARNED IN THE RELEVANT PREVIOUS YEAR, THE CIT( A)S ORDER DELETING THE SAME BE UPHELD. IN THIS CONNECTION, HE R ELIED ON THE FOLLOWING 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) THEIR LORDSHIPS HOLD THAT SECTION 14A READ WITH RULE 8 D APPLIES ONLY IN RELATION TO AN ASSESSEES EXEMPT INCOM E AND NOT OTHERWISE. WE THEREFORE SUSTAIN THE ORDER OF CIT(A). THE REVENUES FOREGOING SOLE SUBSTANTIVE GROUND IS REJEC TED THEREFORE. 5. THIS REVENUES APPEAL IS DISMISSED IN ABOVE TERMS . ORDER PRONOUNCED IN THE OPEN COURT ON 22 ND JUNE, 2021 SD/- SD/- (LAXMI PRASAD SAHU) (S. S.GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED: 22-06-2021 TNMM ITA NO. 1188/HYD/2018 :- 3 -: COPY TO : 1.THE INCOME TAX OFFICER, WARD-2(2), HYDERABAD. 2.M/S.GMR AEROSPACE ENGINEERING CO.LIMITED, (FORMER LY KNOWN AS MAS GMR AEROSPACE ENGINEERING LIMITED), PL OT NO.1, GMR AEROSPACE PARK, GMR HYDERABD AVIATION SEZ LIMITED, RAJIV GANDHI INTERNATIONAL AIRPORT, SHAMSH ABAD, HYDERABAD. 3.CIT(APPEALS)-4, HYDERABAD. 4.PR.CIT-4, HYDERABAD. 5.D.R. ITAT, HYDERABAD. 6.GUARD FILE.