Rasi Seeds Pvt Ltd, Coimbatore V. ACIT, Central Circle -2, Coimbatore

ITA 143/CHNY/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 6543 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 1 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-02-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 10-01-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R CLEMENT RAMESH KUMAR
• Keywords: Earning of tax free income; Rule 8D
• Section: 14A

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: CHENNAI , ! ' # ' $ . ! &' , ( ) BEFORE SHRI INTURI RAMA RAO , ACCOUNT ANT MEMBER AND SHRI DUVVURU RL REDDY , JUDICIAL MEMBER ./ ITA NO.143/CHNY/2018 ( * +* /ASSESSMENT YEAR: 2014-15 M/S. RASI SEEDS PVT. LTD., 174, SATHYAMURTHY ROAD, RAMNAGAR, COIMBATORE 641 009. [PAN: AABCR 2871C] VS. ASST. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2, COIMBATORE. ( ,- /APPELLANT) ( ./,- /RESPONDENT) ,- 0 1 / APPELLANT BY : NONE ./,- 0 1 /RESPONDENT BY : SHRI R.CLEMENT RAMESH KUMAR, ADDL. CIT ' 0 2 /DATE OF HEARING : 13.02.2019 34+ 0 2 /DATE OF PRONOUNCEMENT : 25.02.2019 5 / O R D E R PER INTURI RAMA RAO, ACCOUNTANT MEMBER : THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AG AINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) -18, CHENNAI (HEREINAFTER CALLED AS CIT(A)) DATED 14.11.2017 F OR THE ASSESSMENT YEAR (AY) 2014-15. 2. THE BRIEF FACTS OF THE CASE ARE AS UNDER: THE SOLITARY ISSUE INVOLVED IN THE PRESENT APPEAL IS THE ADDITION MADE U/S. 14A OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). DURING ITA NO.143/CHNY/2018 :- 2 -: THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER (AO) NOTICED THAT THE APPELLANT MADE INVESTMENTS OF RS. 12,29,17,706/- AND EARNED DIVIDEND INCOME OF RS. 4,450/-, WHICH WAS CL AIMED AS EXEMPT U/S. 10(34) OF THE ACT. THEREFORE, THE AO INVOKED THE PROVISIONS OF S. 14A OF R/W RULE 8D OF THE INCOME TAX RULES AND MADE ADDITION OF RS. 6,14,580/-. 3. AGAINST THE SAID ADDITION, THE APPELLANT FILED A N APPEAL BEFORE THE LD. CIT(A), WHO VIDE IMPUGNED ORDER CONFIRMED THE A DDITION. BEING AGGRIEVED, THE APPELLANT IS IN APPEAL BEFORE US IN THE PRESENT APPEAL. 4. AT THE TIME OF HEARING, NONE APPEARED ON BEHALF OF THE ASSESSEE- COMPANY. ON THE OTHER HAND, THE REVENUE PLACED REL IANCE ON THE ORDERS OF THE LOWER AUTHORITIES. 5. WE HAVE PERUSED THE MATERIAL ON RECORD AND THE A RGUMENTS OF LD. SR. DEPARTMENTAL REPRESENTATIVE. THE DIVIDEND INCO ME EARNED WAS RS. 4,550/-. THEREFORE, THE ADDITION U/S. 14A OF THE A CT CANNOT EXCEED THE AMOUNT OF EXEMPT INCOME. RELIANCE CAN BE PLACED ON THE DECISION OF HONBLE HIGH COURT OF PUNJAB & HARYANA IN THE CASE OF PCIT V. STATE BANK OF PATIALA 99 TAXMANN.COM 285 (P&H). THIS DEC ISION WAS AFFIRMED BY HON'BLE SUPREME COURT BY DISMISSING SLP AGAINST THE JUDGMENT OF ITA NO.143/CHNY/2018 :- 3 -: HON'BLE HIGH COURT OF PUNJAB & HARYANA IN THE CASE OF STATE BANK OF PATIALA (SUPRA) IN 99 TAXMANN.COM 285. 6. ACCORDINGLY, WE DIRECT THE AO TO RESTRICT THE AD DITION U/S. 14A OF THE ACT TO THE EXTENT OF THE EXEMPT INCOME EARNED. THU S, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED ON THE 25 TH DAY OF FEBRUARY, 2019 IN CHENNAI. SD/- SD/- ( . ) (DUVVURU RL REDDY) /JUDICIAL MEMBER ( ) (INTURI RAMA RAO) /ACCOUNTANT MEMBER /CHENNAI, 6 /DATED: 25 TH FEBRUARY, 2019. EDN, SR. P.S 5 0 .(278 98+2 /COPY TO: 1. ,- /APPELLANT 4. ' :2 /CIT 2. ./,- /RESPONDENT 5. 8;< .(2( /DR 3. ' :2 ( )/CIT(A) 6. <'* = /GF