DCIT Corporate Circle 1(2), CHENNAI V. Baashyaam Constructions Pvt. Ltd., CHENNAI

ITA 1253/CHNY/2018

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 9703 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-09-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 12-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AWIJIT REKSHIT
• Assessee Lawyers: N ARJUN RAJ C A SHRI S SRIDHAR
• Keywords: Earning of tax free income; Tax effect
• Section: 14A

Judgement Text

, , IN THE INCOME-TAX APPELLATE TRIBUNAL B BENCH, CHE NNAI , . , BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER & SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ I.T.A.NO.1253/CHNY/2018 / ASSESSMENT YEAR :2013-14 THE DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 1 (2), CHENNAI 600 034. VS. M/S. BAASHYAAM CONSTRUCTIONS PVT. LTD., NO. 11, RADHAKRISHNA, GOPALAKRISHNAN STREET, T. NAGAR, CHENNAI 600 017. [PAN: AACCB4376P] ( /APPELLANT ) ( / RESPONDENT ) / APPELLANT BY : SHRI AWIJIT REKSHIT, JCIT / RESPONDENT BY : SHRI N. ARJUN RAJ, C.A. FOR SHRI S. SRIDHAR, ADVOCATE / DATE OF HEARING : 26.09.2018 /DATE OF PRONOUNCEMENT : 26.09.2018 / O R D E R PER A. MOHAN ALANKAMONY, AM : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS)-1, CHENNAI, DATED 31.01.2018 IN ITA NO.564/CIT(A)-1/2016-17 FOR THE A SSESSMENT YEAR 2013- 14 PASSED U/S. 250(6) OF THE ACT. THE ONLY EFFECTIV E GROUND RAISED IN THE APPEAL OF THE REVENUE IS THAT THE LD. CIT(A) HAS ER RED IN DELETING THE DISALLOWANCE MADE UNDER SECTION 14A OF THE ACT OF .37.74 LAKHS HOLDING THAT THE PROVISIONS OF SECTION 14A OF THE ACT ARE N OT APPLICABLE, SINCE THE I.T.A. I.T.A. I.T.A. I.T.A. NO. NO. NO. NO.1 11 1253 253253 253/ // /CHNY CHNY CHNY CHNY/ // /1 11 18 88 8 2 ASSESSEE HAD NOT EARNED ANY EXEMPT INCOME DURING TH E RELEVANT ASSESSMENT YEAR. 2. THE APPEAL OF THE REVENUE IS FOUND TO HAVE BEEN FILED LATE BY FOUR DAYS BEFORE THE TRIBUNAL. THE ASSESSING OFFICER HAS FILED AN AFFIDAVIT FOR CONDONATION OF DELAY. THE LD. DR, CITING THE REASON S STATED BY THE LD. ASSESSING OFFICER, REQUESTED FOR CONDONING THE DELA Y AND TO ADMIT THE APPEAL FOR HEARING. THE LD. COUNSEL FOR THE ASSESSE E DID NOT OBJECT TO THE SUBMISSIONS OF THE LD. DR. ACCORDINGLY, WE CONDONE THE DELAY OF FOUR DAYS IN FILING THE APPEAL AND ADMIT THE APPEAL FOR HEARING. 3. AT THE TIME OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE APPEAL FILED BY THE REVENUE IS NOT MAINTAI NABLE SINCE THE TAX EFFECT IS BELOW RS.20 LAKHS. THE LD. DR ALSO COULD NOT CO NTROVERT TO THE FINDING OF THE LD. AR. 4. THE CBDT IN ITS LATEST CIRCULAR NO.3/2018 DATED 11.07.2018 HAD FIXED THE MONETARY TAX EFFECT AS RS.20 LAKHS FOR FILING A PPEAL BEFORE THE TRIBUNAL. FURTHER, IT IS APPARENT FROM THE ORDERS OF THE LD. REVENUE AUTHORITIES THAT IN THE CASE OF THE ASSESSEE, THE TAX EFFECT IS BELOW R S.20 LAKHS WHICH IS ALSO CONCEDED BY THE LD. DR. HENCE DUE TO THE INSTRUCTIO NS ISSUED BY THE CBDT VIDE ITS CIRCULAR MENTIONED HEREIN ABOVE, WE HEREBY HOLD THAT THE APPEAL I.T.A. I.T.A. I.T.A. I.T.A. NO. NO. NO. NO.1 11 1253 253253 253/ // /CHNY CHNY CHNY CHNY/ // /1 11 18 88 8 3 FILED BY THE REVENUE IS NOT MAINTAINABLE AND ACCORD INGLY THE APPEAL OF THE REVENUE IS DISMISSED. 5. IN THE RESULT THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 26 TH OF SEPTEMBER, 2018 AT CHENNAI. SD/- SD/- (GEORGE MATHAN) JUDICIAL MEMBER (A. MOHAN ALANKAMONY) ACCOUNTANT MEMBER CHENNAI, DATED, THE 26.09.2018 VM/- #$ %$ /COPY TO: 1. / APPELLANT, 2. / RESPONDENT, 3. & ( ) /CIT(A), 4. & /CIT, 5. $'( ) /DR & 6. (* /GF.