Tidel Park Ltd. , CHENNAI V. ACIT Corporate Circle 3(1) , CHENNAI

ITA 1469/CHNY/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 6656 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-10-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 10-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: R VIJAYARAGHAVAN
• Keywords: Earning of tax free income; Rule 8D
• Section: 250

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , A BENCH, CHENNAI . . . , , BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ I.T.A.NO.1469/CHNY/2019 ( [ [ / ASSESSMENT YEAR: 2014-15) M/S. TIDEL PARK LTD., N.4, RAJIV GANDHI SALAI, TARAMANI, CHENNAI 600 013. VS THE ACIT, CORPORATE CIRCLE 3(1), CHENNAI. PAN: AABCT 0666R ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : SHRI R. VIJAYARAGHAVAN, ADVOCATE / RESPONDENT BY : SHRI AR.V. SREENIVASAN, JCIT /DATE OF HEARING : 09.10.2019 /DATE OF PRONOUNCEMENT : 15.10.2019 / O R D E R PER S. JAYARAMAN, ACCOUNTANT MEMBER: THE ASSESSEE FILED THIS APPEAL AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-11, CHENNAI IN ITA NO.320/16-17, DATED 21.02.2019 FOR THE ASSESSMENT YEAR 2014-15. 2 ITA NO.1469/CHNY/2019 2. M/S. TIDEL PARK LIMITED, IS ENGAGED IN THE BUSINESS OF IT ENABLED SERVICES AND BPO SERVICE PROVIDER. WHILE MAKING THE ASSESSMENT FOR THE ASSESSMENT YEAR 2014-15, THE AO, INTER-ALIA, MADE DISALLOWANCE U/S.14A R.W. RULE 8D OF RS.64,22,758/-. AGGRIEVED AGAINST THAT ORDER, THE ASSESSEE FILED APPEAL BEFORE THE CIT(A). THE LD.CIT(A) DISMISSED THE APPEAL. AGGRIEVED AGAINST THAT ORDER, THE ASSESSEE FILED AN APPEAL BEFORE THIS TRIBUNAL. 3. THE LD.AR PLEADED THAT THE LD.CIT(A) FAILED TO APPRECIATE THAT THE ASSESSEE HAS NOT DERIVED ANY EXEMPT INCOME DURING THE YEAR RELEVANT TO THE ASSESSMENT YEAR AND THEREFORE, THE AO WAS NOT CORRECT IN MAKING THE DISALLOWANCE U/S.14A R.W. RULE 8D, AS PER THE HONBLE SUPREME COURT DECISION IN THE CASE OF CIT VS. CHETTINAD LOGISTICS P. LTD., REPORTED IN [2018] 95 TAXMANN.COM 250 (SC). IN THIS REGARD, HE FILED A COPY OF THE FINANCIAL STATEMENT FOR THE RELEVANT PERIOD IN SUPPORT OF THE CONTENTION THAT THE ASSESSEE HAS NOT RECEIVED ANY DIVIDEND. PER CONTRA, THE LD.DR SUPPORTED THE ORDERS OF THE LOWER AUTHORITIES. 3 ITA NO.1469/CHNY/2019 4. WE HEARD THE RIVAL SUBMISSIONS. SINCE, THE ASSESSEE DID NOT HAVE ANY EXEMPT INCOME DURING THE YEAR RELEVANT TO THE ASSESSMENT YEAR, IN ACCORDANCE WITH THE HONBLE APEX COURTS DECISION, THE DISALLOWANCE MADE U/S.14A R.W. RULE 8D IS NOT WARRANTED AND HENCE, THE AO IS DIRECTED TO DELETE THE ADDITION. THE CORRESPONDING GROUND OF THE ASSESSEE IS ALLOWED. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE COURT ON 15 TH OCTOBER, 2019 AT CHENNAI. SD/- SD/- /CHENNAI, /DATED 15 TH OCTOBER, 2019 RSR /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. ( ) /CIT(A) 4. /CIT 5. /DR 6. [ /GF ( . . . ) (N.R.S. GANESAN) / JUDICIAL MEMBER ( ) (S. JAYARAMAN) /ACCOUNTANT MEMBER