Deputy Commissioner Of Income Tax, Circle - 5(1)(1), Bangalore V. M/s. Nitesh Estates Limited, Bengaluru

ITA 1295/BANG/2019

• Counselvise Citation: [2019] 114 COUNSELVISE.COM (IT) 6188 (ITAT-BANGALORE)
• Duration Of Justice: 5 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-11-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 06-06-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R PREMI
• Keywords: Earning of tax free income
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCHES C BENCH: BANGALORE BEFORE SHRI B.R. BASKARAN, ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA. NO. 1295/BANG/2019 (ASSESSMENT YEAR: 2013 - 14 ) DY. COMMISSIONER OF INCOME TAX, CIRCLE 5(1)(1), BANGALORE. .APPELLANT VS. M/S. NITESH ESTATES LIMITED, NO.8, 7 TH FLOOR, NITESH TIMES QUARE, M.G. ROAD, BANGALORE - 560 001 RESPONDENT. PAN AABCN 9267C ASSESSEE BY: NONE. REVENUE BY: SMT. R. PREMI, JCIT (D.R) DATE OF HEARING : 18.11.2019 DATE OF PRONOUNCEMENT : 18 .11.2019 O R D E R PER SHRI B.R. BASKARAN, AM : THE REVENUE HAS FILED THIS APPEAL CHALLENGING THE ORDER DATED 22 - 03 - 2019 PASSED BY LD CIT(A) - 5, BENGALURU AND IT RELATES TO THE ASSESSMENT YEAR 2013 - 14. THE REVENUE IS AGGRIEVED BY THE DECISION OF LD CIT(A) IN DELETING THE DISALLOWANCE MADE U/S 14A OF THE ACT. 2. NONE APPEARED FOR THE ASSESSEE. WE HEARD LD D.R AND PERUSED THE RECORD. THE FACTS RELATING TO THE ISSUE ARE THAT THE ASSESSEE IS ENGAGED IN THE 2 ITA NO.1295/BANG/2019 BUSINESS OF DEVELOPMENT, SALE, MANAGEMENT AND OP ERATION OF RESIDENTIAL BUILDINGS, RE N TAL AND HOTEL PROJECTS. THE AO NOTICED THAT THE ASSESSEE HAS MADE HUGE INVESTMENTS IN VARIOUS FUNDS, INCOME FROM WHICH ARE EXEMPT. HOWEVER, THE ASSESSEE HAS NOT MADE ANY DISALLOWANCE U/S 14A OF THE ACT. HENCE THE AO DISALLOWED A SUM OF RS.141.50 LAKHS U/R 8D(2)(III) @ 0.50% OF AVERAGE VALUE OF INVESTMENTS. 3. THE LD CIT(A) NOTICED THAT THE ASSESSEE HAS NOT EARNED ANY EXEMPT INCOME DURING THE YEAR. ACCORDINGLY HE HELD THAT THERE IS NO REQUIREMENT OF MAKING ANY DISALLOWANCE U/S 14A OF THE ACT. IN THIS REGARD, HE FOLLOWED THE DECISION RENDERED BY THE CO - ORDINATE BEN CHES IN THE CASES OF JOHN DISTELLERIES LTD VS. DCIT (ITA NO.1429/BANG/2014) AND BPL LIMITED (ITA NO.1055/BANG/2017 DATED 03 - 11 - 2017). THE REVENUE IS AGGRIEVED BY THE DECISION SO RENDERED BY LD CIT(A). 4. THE LD D.R SUPPORTED THE ORDER PASSED BY THE AO. WE NOTICE THAT THE LD CIT(A) HAS FOLLOWED THE DECISION RENDERED BY THE CO - ORDINATE BENCHES OF TRIBUNAL IN HOLDING THAT NO DISALLOWANCE U/S 14A OF THE ACT IS CALLED FOR , WHEN THE ASSESSEE DID NOT HAVE ANY EXEMPT INCOME. NO OTHER CONTRARY DECISION WAS BROUGHT TO OUR NOTICE. HENCE WE DO NOT FIND ANY REASON TO INTERFERE WITH HIS ORDER. ACCORDINGLY WE UPHOLD THE ORDER PASSED BY LD CIT(A). 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. P R O N O U N C E D O N 1 8 . 1 1 . 2 0 1 9 . S D / - S D / - (PAVAN KUMAR GADALE) (B .R. BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 1 8 .11.2019. *REDDY GP 3 ITA NO.1295/BANG/2019 COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT (A) 4. PR. CIT 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME - TAX APPELLATE TRIBUNAL BANGALORE