ITO, Bangalore V. M/s Mardec RK Latex Pvt. Ltd., Bangalore

ITA 130/BANG/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 8554 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-02-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 06-12-2016
• Assessment Year: 2012-2013
• Appeal Filed On: 05-02-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M K BIJU JT CITITATDR
• Assessee Lawyers: A VENUGOPAL
• Keywords: Earning of tax free income
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : BANGALORE BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO.130/BANG/2016 ASSESSMENT YEAR : 2012-13 THE INCOME TAX OFFICER, WARD 4(1)(3), BANGALORE. VS. M/S. MARDEC RK LATEX PVT. LTD., NO.A-101 & 102, KSSIDC INDUSTRIAL ESTATE, VEERAPURA POST, DODDABALLAPUR, BENGALURU 561 203. PAN: AAACC 9284F APPELLANT RESPONDENT CO NO.69/BANG/2016 [IN ITA NO. 130/BANG/2016] ASSESSMENT YEAR : 2012-13 M/S. MARDEC RK LATEX PVT. LTD., BENGALURU 561 203. PAN: AAACC 9284F VS. THE INCOME TAX OFFICER, WARD 4(1)(3), BANGALORE. CROSS OBJECTOR RESPONDENT REVENUE BY : SHRI M.K. BIJU, JT. CIT(ITAT-3)(DR) ASSESSEE BY : SHRI A. VENUGOPAL, CA DATE OF HEARING : 06.12.2016 DATE OF PRONOUNCEMENT : 22.02.2017 ITA NO.130/BANG/2016 & CO NO.69/BANG/2016 PAGE 2 OF 4 O R D E R PER SUNIL KUMAR YADAV, JUDICIAL MEMBER THIS APPEAL IS PREFERRED BY THE REVENUE AGAINST T HE ORDER OF CIT(APPEALS) ON A SOLITARY GROUND THAT THE CITA HAS FAILED TO APPRECIATE THAT THE AO HAS RIGHTLY INVOKED THE PROVISIONS OF S ECTION 14A OF THE I.T. ACT R.W. RULE 8D OF THE I.T. RULES IN ARRIVING AT THE D ISALLOWANCE MADE IN THE ASSESSMENT ORDER. 2. DURING THE COURSE OF HEARING, THE LD. COUNSEL FO R THE ASSESSEE HAS INVITED OUR ATTENTION THAT ASSESSEE DID NOT EARN AN Y EXEMPT INCOME, THEREFORE THERE WAS NO QUESTION OF DISALLOWANCE U/S . 14A OF THE ACT. IN SUPPORT OF HIS CONTENTION, ASSESSEE HAS PLACED RELI ANCE ON THE ORDER OF BANGALORE BENCH OF THE TRIBUNAL IN THE CASE OF M/S. ALLIANCE INFRASTRUCTURE PROJECTS PVT. LTD. V. DCIT [ITA NOS. 220 & 1043(BNG )/2013] AND THE ORDER OF CHENNAI BENCH OF THE TRIBUNAL IN THE CASE OF ACIT V. M. BASKARAN [ITA NO.1717/MDS/2013] IN WHICH IT HAS BEEN HELD THAT IN CASE OF ASSESSEE IS NOT RECEIVING ANY EXEMPT INCOME DURING THE RELEVANT FINANCIAL YEAR, DISALLOWANCE U/S. 14A CANNOT BE MADE. RELIANCE WAS ALSO PLACED UPON THE ORDER OF AHMEDABAD BENCH OF TRIBUNAL IN THE CASE OF M/S. SUZLON ENERGY LTD. V. DCIT IN ITA NOS.3911/AHD/2008 AND 1367/AHD/ 2008. IN THESE CASES, THE TRIBUNAL HAS CATEGORICALLY HELD THAT IN THE ABSENCE OF EXEMPT INCOME, THE PROVISIONS OF SECTION 14A CANNOT BE INV OKED. ITA NO.130/BANG/2016 & CO NO.69/BANG/2016 PAGE 3 OF 4 3. THE LD. DR PLACED RELIANCE UPON THE ORDER OF AO. 4. HAVING CAREFULLY EXAMINED THE ORDERS OF LOWER AU THORITIES, WE FIND THAT THE AO HAS GIVEN A CATEGORICAL FINDING IN HIS ORDER THAT THERE WAS NO EXEMPT INCOME EARNED DURING THE YEAR. THEREFORE, F OLLOWING THE AFORESAID ORDERS OF THE TRIBUNAL, THE CIT(APPEALS) HAS DELETE D THE DISALLOWANCE MADE U/S. 14A OF THE ACT. SINCE THE CIT(A) HAS DEC IDED THE ISSUE FOLLOWING THE ORDERS OF TRIBUNAL, WE FIND NO INFIRMITY THEREI N AND ACCORDINGLY WE CONFIRM THE SAME. 5. CO IS FILED BY THE ASSESSEE IN SUPPORT OF THE OR DER OF CIT(APPEALS). SINCE THE APPEAL OF THE REVENUE IS DISMISSED, CO OF THE ASSESSEE HAS BECOME INFRUCTUOUS AND WE DISMISS THE SAME. 6. IN THE RESULT, THE APPEAL AND CO OF THE ASSESSEE ARE DISMISSED. PRONOUNCED IN THE OPEN COURT ON THIS 22 ND DAY OF FEBRUARY, 2017. SD/- SD/- ( A.K. GARODIA ) (SUNIL KUMAR YA DAV ) ACCOUNTANT MEMBER JUDIC IAL MEMBER BANGALORE, DATED, THE 22 ND FEBRUARY, 2017. /D S/ ITA NO.130/BANG/2016 & CO NO.69/BANG/2016 PAGE 4 OF 4 COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, ITAT, BANGALORE.