Avanti Feeds Limited , Hyderabad V. Dy. Commissioner of Income Tax , Circle-1(1), Hyderabad

ITA 1474/Hyd/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 2582 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 8 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-06-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 13-05-2021
• Assessment Year: 2008-2009
• Appeal Filed On: 27-09-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: H SRINIVASULU
• Keywords: Earning of tax free income; Rule 8D
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER I.T.A. NO. 1474/HYD/2019 ASSESSMENT YEAR: 2008-09 M/S.AVANTI FEEDS LIMITED, HYDERABAD [PAN: AABCA7365E] VS DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-1(1), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI H.SRINIVASULU, AR FOR REVENUE : SHRI ROHIT MUJUMDAR, DR DATE OF HEARING : 13-05-2021 DATE OF PRONOUNCEMENT : 23-06-2021 O R D E R PER S.S.GODARA, J.M. : THIS ASSESSEES APPEAL FOR AY.2008-09 ARISES FROM TH E CIT(A)-1, HYDERABADS ORDER DATED 11-06-2019 PASSED IN CASE NO.10139/2010-11/DCIT 1(1)/CIT(A)-1/HYD/2019-20, IN PROCEEDINGS U/S.143(3) OF THE INCOME TAX ACT, 1961 [I N SHORT, THE ACT]. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. THE ASSESSEES SOLE SUBSTANTIVE GRIEVANCE RAISED I N THE INSTANT APPEAL CHALLENGES CORRECTNESS OF BOTH THE LOWER AUTHORITIES ACTION INVOKING SECTION 14A R.W. RULE 8D (2)(III) DISALLOWANCE OF % AS AVERAGE VALUE OF INVESTMENTS; COMING TO ITA NO. 1474/HYD/2019 :- 2 -: RS.14,44,473/- IN THE COURSE OF ASSESSMENT DT.29-10-20 10 AS UPHELD IN THE CIT(A)S LOWER APPELLATE DISCUSSION. 3. SUFFICE TO SAY, IT EMERGES AT THE OUTSET THERE IS NO DI SPUTE ABOUT THE ASSESSEE TO HAVE DERIVED ITS EXEMPT INCOME FRO M DIVIDENDS OF RS.4,28,402/-. THE ASSESSEES ONLY CAS E BEFORE US IN LIGHT OF THE TRIBUNALS CO-ORDINATE BENCH(ES) ORDER( S) IN AYS.2009-10 AND 2010-11 IS THAT THE ONLY EXEMPT INCOME YIELDING INVESTMENTS HAVE TO BE CONSIDERED WHILST COMP UTING THE IMPUGNED ADMINISTRATIVE EXPENDITURE DISALLOWANCE. 4. LEARNED DEPARTMENTAL REPRESENTATIVE FAILS TO REBUT THE CLINCHING FACT THAT THE IMPUGNED COMPUTATION HAS NOT FOLL OWED THE FOREGOING COMPUTATION. WE THUS QUOTE HONBLE KOLKATA HIGH COURTS DECISION PCIT VS. R.E.I.AGRO LTD., G.A.NO.35 81 OF 2013, ITA NO.220 OF 2013 AS WELL AS THE TRIBUNALS EARLIER ORDERS (SUPRA) AND DIRECT THE ASSESSING OFFICER TO RESTRICT THE IMPUGNED DISALLOWANCE ONLY TO THE EXTENT OF EXEMPT INCOM E YIELDING INVESTMENTS IN THE RELEVANT PREVIOUS YEAR. NE CESSARY COMPUTATION TO FOLLOW AS PER LAW. ORDERED ACCORDINGLY. 5. THIS ASSESSEES APPEAL IS ACCEPTED FOR STATISTICAL PURPOSES IN ABOVE TERMS. ORDER PRONOUNCED IN THE OPEN COURT ON 23 RD JUNE, 2021 SD/- SD/- (LAXMI PRASAD SAHU) (S.S.G ODARA) ACCOUNTANT MEMBER JUDICIAL MEM BER HYDERABAD, DATED: 23-06-2021 TNMM ITA NO. 1474/HYD/2019 :- 3 -: COPY TO : 1.M/S.AVANTI FEEDS LIMITED, 6-3-658, CONCORD APARTM ENTS, SOMAJIGUDA, HYDERABAD. 2.DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-1(1), HYDERABAD. 3.CIT(APPEALS)-1, HYDERABAD. 4.PR.CIT-1, HYDERABAD. 5.D.R. ITAT, HYDERABAD. 6.GUARD FILE.