Income Tax Officer, Ward-4(1)(3), Bangalore V. M/s. Milan Minerals Pvt Ltd, Bangalore

ITA 1454/BANG/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 4771 (ITAT-BANGALORE)
• Duration Of Justice: 11 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-05-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 21-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PADMA MEENAKSHI
• Keywords: Earning of tax free income
• Section: 143(3); 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH B BEFORE S HRI N.V. VASUDEVAN , JUDICIAL MEMBER AND SHRI INTURI RAMA RAO , ACCOUNTANT MEMBER I.T . A. NO. 1454 /BANG/20 17 (ASSESSMENT YEAR : 20 13 - 14) INCOME TAX OFFICER, WARD 4(1)(3), BANGALORE. . APPELLANT. VS. M/S. MILAN MINERALS PVT. LTD., NO.81, GROUND FLOOR, OLD POST OFFICE ROAD, 2 ND BLOCK, THYAGARAJ NAGAR, BANGALORE - 560 028 . .. RESPONDENT. APPELLANT BY : SMT. PADMA MEENAKSHI, JCIT (D.R) R E SPONDENT BY : NONE. DATE OF H EARING : 22.5.2018. DATE OF P RONOUNCEMENT : 25 .05 .201 8 . O R D E R PER SHRI INTURI RAMA RAO , A .M . : THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS) - 4 , BANGALORE DT.24.3.217 FOR THE ASSESSMENT YEAR 2 0 13 - 14. 2. THE REVENUE RAISED THE FOLLOWING GROUNDS : 2 IT A NO. 1454/ BANG/201 7 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE FILED RETURN OF INCOME FOR THE ASSESSMENT YEAR 2013 - 14 DECLARING LOSS OF RS.17,50,940 AGAINST WHICH THE ASSESSING OFFICER COMPLETED THE ASSESS MENT VIDE ORDER DT.20.12.2015 PASSED UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT 'THE ACT') AFTER MAKING DISALLOWANCE OF RS.16,77,960 INVOKING THE PROVISIONS OF SECTION 14A OF THE ACT. 4. THE CONTENTION OF THE ASSESSEE IS THAT THE I NVESTMENTS WERE MADE, BUT NO EXEMPT INCOME OR DIVIDEND INCOME WAS RECEIVED, THEREFORE THE 3 IT A NO. 1454/ BANG/201 7 PROVISIONS OF SECTION 14A OF THE ACT CANNOT BE INVOKED , T HE ASSESSING OFFICER DENIED THE CLAIM OF THE ASSESSEE PLACING RELIANCE ON CBDT CIRCULAR NO.5 OF 2014 DT. 11.12.2014 . BEING AGGRIEVED THE ASSESSEE FILED APPEAL BEFORE THE LD. CIT (APPEALS). THE LEARNED CIT (APPEALS) DELETED THE ADDITION MADE UNDER SECTION 14A OF THE ACT ON THE GROUND THAT THE ASSESSEE HAD NOT RECEIVED ANY EXEMPT INCOME DURING THE YEAR UNDER CONSIDERATION. BEING AGGRIEVED THE REVENUE IS IN APPEAL BEFORE US. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL ON RECORD. NOW IT IS SETTLED PROPOSITION OF LAW THAT THE PROVISIONS OF SECTION 14A CANNOT BE INVOKED IN THE ABSE NCE OF EXEMPT INCOME. R ELIANCE IN THIS REGARD CAN BE PLACED ON THE DECISION OF SPECIAL BENCH OF ITAT, HYDERABAD IN THE CASE OF ACIT VS. PROGRESSIVE CONSTRUCTIONS LTD. 92 TAXMANN.COM 104. T HE DECISION OF THE LEARNED CIT (APPEALS) IS IN CONSONANCE WITH THE RATIO LAID DOWN IN THE SPECIAL BENCH (SUPRA). THEREFORE, W E DO NOT FIND 4 IT A NO. 1454/ BANG/201 7 ANY REASON TO INTERFERE WITH THE IMPUGNED ORDER OF THE LEARNED CIT (APPEALS). HENCE THE GROUNDS RAISED BY THE REVENUE ARE DISMISSED. 6. IN THE RESULT, THE APPEAL OF REVEN UE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 25 TH DAY OF MAY, 201 8 . SD/ - (N.V. VASUDEVAN) JUDICIAL MEMBER SD/ - ( INTURI RAMA RAO ) ACCOUNTANT MEMBER BANGALORE, DT. 25 .05.2018. *REDDY GP COPY TO : 1 APPELLANT 4 CIT(A) 2 RESPONDEN T 5 DR. ITAT, BANGALORE 3 CIT 6 GUARD FILE SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL BANGALORE.