Assistant Commissioner of Income TAx Central Circle-2(2), Bangalore V. M/s Greenko Wind Projects Pvt Ltd , Bangalore

ITA 15/BANG/2018

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 4633 (ITAT-BANGALORE)
• Duration Of Justice: 5 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-06-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 02-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR P V PRADEEP KUMAR
• Assessee Lawyers: K R VASUDEVAN
• Keywords: Earning of tax free income
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, B E NGAL U R U BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI LALI E T KUMAR, JUDICIAL MEMBER ITA NO. 15 / BANG/ 201 8 (ASSESSMENT YEAR : 20 1 4 - 15 ) ASST. COMMISSIONER OF INCOME - TAX, CIRCLE 2(2), BENGALUR U. VS. M/S.GREENKO WIND PROJECTS PVT. LTD. SUIT NO.701 & 702, PRESTIGE MERIDIAN II, APPELLANT M.G.ROAD, BENGALURU - 560 001. PAN :AAECG 3498 H RESPONDENT APPELLANT BY : DR.P.V.PRADEEP KUMAR, ADDL.CIT(DR). RESPONDENT BY : SHRI K.R.VASUDEVAN , ADVOCATE. DATE OF HEARING : 2 8 /06/2018 DATE OF PRONOUNCEMENT : 29 /0 6 /2018 O R D E R PER I NTURI RAMA RAO, AM : THIS IS AN APPEAL FILED BY THE REVENUE DIRECTED AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME - TAX(APPEALS) - 3 , [CIT(A)] , BENGALURU, DATED 27/10/2017 FOR THE ASSESSMENT YEAR 201 4 - 1 5 . 2. THE REVENUE RAISED THE FOLLOWING GROUNDS OF APPEAL: IT A 15 /BANG/201 8 PAGE 2 OF 4 3. BRIEFLY, THE FACTS OF THE CASE ARE THAT THE RESPONDENT - ASSESSEE IS A COMPANY DULY INCORPORATED UNDER THE PROVISIONS OF THE COMPANI ES ACT, 1956. IT IS ENGAGED IN THE BUSINESS OF MANUFACTURING OF POWER AND ENERGY. THE RETURN OF INCOME FOR THE ASSESSMENT YEAR 2014 - 15 WAS FILED ON 03/11/2014 DECLARING LOSS OF RS.91,76,153/ - . AGAINST THE SAID RETURN OF INCOME, THE ASSESSMENT WAS COMPL ETED BY THE ASSESSING OFFICER AT TOTAL INCOME OF RS.3,03,98,848/ - . WHILE DOING SO , THE AO MADE DISALLOWANCE OF RS.43,95,75,001/ - U/S 14A OF THE ACT, REJECT ING THE CONTENTION OF THE ASSESSEE THAT IN THE ABSENCE OF ANY EXEMPT INCOME, NO DISALLOWANCE U/S 14A OF THE INCOME - TAX ACT, 1961 [HEREINAFTER REFERRED TO AS 'THE ACT' FOR SHORT] CAN BE MADE AFTER PLACING RELIANCE ON THE DECISION OF THE DELHI BENCH OF TRIBUNAL IN THE CASE OF TECHNO PARK ADVISORS LTD. VS. ACIT (50 SOT 31)(DEL)(URO). THE AO ALSO REJECTED TH E ARGUMENT THAT INVESTMENTS ARE STRATEGY INVESTMENTS; NO DISALLOWANCE U/S 14A CAN BE MADE. 4. BEING AGGRIEVED, AN APPEAL WAS PREFERRED BEFORE THE LD.CIT(A), WHO VIDE IMPUGNED ORDER HELD THAT NO DISALLOWANCE U/S 14A CAN BE MADE IN THE ABSENCE OF ANY EXEMPT INCOME AFTER PLACING RELIANCE ON THE DECISIONS OF THE HON BLE DELHI HIGH COURT IN THE CASE OF PRINCIPAL CIT VS. FS ENERGY DEVELOPMENT CO.LTD., (84 TAXMANN.COM 186)(DEL) AND AND CHEMINVEST LTD. VS. CIT (378 ITR 33)(DEL). 5. BEING AGGRIEVED, THE REVENUE I S IN APPEAL BEFORE US VIDE PRESENT APPEAL. 6. WE HEARD RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. THE ONLY ISSUE IN THE PRESENT APPEAL IS WHETHER THE LD.CIT(A) WAS JUSTIFIED IN DELETING THE ADDITION MADE U/S 14A ON THE GROUND THAT IN THE ABSENC E OF ANY EXEMPT INCOME, RESORT CANNOT BE MADE TO THE PROVISIONS OF SECTION 14A. THE RELEVANT OBSERVATIONS OF THE LD.CIT(A) ARE AS UNDER: IT A 15 /BANG/201 8 PAGE 3 OF 4 WE FIND THAT THE RATIO OF THE DECISIONS OF THE HON BLE DELHI HIGH COURT IN THE CASES CITED SUPRA STILL HOLD THE FIEL D. THERE IS NOTHING ON RECORD TO SHOW THAT THE DECISIONS HA D BEEN REVERSED BY THE HON BLE APEX COURT. IN THE CIRCUMSTANCES, WE DO NOT FIND ANY FALLACY IN THE REASONING OF THE LD.CIT(A). HENCE, THE GROUNDS OF APPEAL FILED BY THE REVENUE ARE DISMISSED. 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 29 TH JUNE, 2018. S D/ - SD/ - ( LALI E T KUMAR ) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE : B EN GAL URU D A T E : 29 /0 6 /2018 SRINIVASULU, SPS IT A 15 /BANG/201 8 PAGE 4 OF 4 COPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT(A) 4 CIT 5 DR, ITAT, BANGALORE. 6 GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY INCOME - TAX APPELLATE TRIBUNAL BANGALORE