DCIT, CHENNAI V. Acsys Software I P Ltd., CHENNAI

ITA 1276/CHNY/2013

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 68732 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-09-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2008-2009
• Appeal Filed On: 07-06-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T N BETGERI IRS
• Section: 143(3); 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI BEFORE DR. O.K.NARAYANAN, VICE-PRESIDENT AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER ITA NO.1276(MDS)/2013 ASSESSMENT YEAR : 2008-09 THE DEPUTY COMMISSIONER OF INCOME-TAX, COMPANY CIRCLE I(1), CHENNAI. VS M/S.ACSYS SOFTWARE INDIA(P) LTD., F79A, SPENCER PLAZA PHASE II, 172, ANNA SALAI, CHENNAI 600 006. PAN AAACA6235E. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI T.N.BETGERI, IRS , JCIT RESPONDENT BY : NONE DATE OF HEARING : 25 TH SEPTEMBER, 2013 DATE OF PRONOUNCEMENT : 25 TH SEPTEMBER, 2013 O R D E R PER DR.O.K.NARAYANAN, VICE-PRESIDENT THIS APPEAL IS FILED BY THE REVENUE. THE RELEVAN T ASSESSMENT YEAR IS 2008-09. THE APPEAL IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX(APPEALS)-VI AT CHENNAI, DATED 22-1-2013. THE APPEAL ARISES OUT OF THE - - ITA 1276 OF 2013 2 ASSESSMENT COMPLETED UNDER SECTION 143(3) OF THE IN COME-TAX ACT, 1961. 2. WHILE COMPLETING THE ASSESSMENT, THE ASSESSING OFFICER HAS MADE A DISALLOWANCE UNDER SEC TION 14A AT HALF PER CENT OF THE AVERAGE INVESTMENT, WHICH AMOU NTED TO ` 27,68,188/-. IN FIRST APPEAL, THE COMMISSIONER OF INCOME- TAX(APPEALS) MODIFIED THE DISALLOWANCE TO A LUMP SU M AMOUNT OF ` 10 LAKHS MAINLY ON THE GROUND THAT RULE 8D IS NOT APPLICABLE FOR THE IMPUGNED ASSESSMENT YEAR. THE REVENUE IS A GGRIEVED AND, THEREFORE, THIS SECOND APPEAL BEFORE US. 3. WHEN THE MATTER WAS CALLED ON FOR HEARING, NOBO DY WAS PRESENT FOR THE RESPONDENT-ASSESSEE INSPITE OF NOTICE. WE HEARD SHRI T.N.BETGERI, THE LEARNED JOINT COMMISSIO NER OF INCOME-TAX APPEARING FOR THE REVENUE. 4. ON GOING THROUGH THE FACTS OF THE CASE AND THE POSSIBLE EXTENT OF THE EXPENDITURE THAT THE ASSESSE E MIGHT HAVE INCURRED IN EARNING THE TAX-FREE INCOME BY WAY OF D IVIDEND, WE FIND THAT THE QUANTUM DETERMINED BY THE COMMISSIONE R OF INCOME-TAX(APPEALS) AT ` 10 LAKHS IS REASONABLE. WE ARE NOT - - ITA 1276 OF 2013 3 INCLINED TO INTERFERE IN THE ORDER OF THE COMMISSIO NER OF INCOME- TAX(APPEALS). 5. IN RESULT, THIS APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON WEDNESDAY, THE 25 TH OF SEPTEMBER, 2013 AT CHENNAI. SD/- SD/- (VIKAS AWASTHY) (DR. O.K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI, DATED THE 25 TH SEPTEMBER, 2013. V.A.P. 1. THE APPELLANT. 2. THE RESPONDENT 3. CIT 4. C IT(A) 5. DR 6. GF