Anand Ispat Udyog Limited , Hyderabad V. Dy. Commissioner of Income Tax , Circle-1(1), Hyderabad

ITA 1579/Hyd/2018

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 6642 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 6 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 13-01-2021
• Assessment Year: 2013-2014
• Appeal Filed On: 20-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SARANG SHAH
• Keywords: 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. 1579/HYD/2018 ASSESSMENT YEAR: 2013-14 ANAND ISPAT UDYOG LIMITED, HYDERABAD [PAN: AACCA7074M] VS THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-1(1), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI SARANG SHAH, AR FOR REVENUE : SHRI ROHIT MUJUMDAR, DR DATE OF HEARING : 13-01-2021 DATE OF PRONOUNCEMENT : 29-01-2021 O R D E R PER BENCH : THIS ASSESSEES APPEAL FOR AY.2013-14 ARISES FROM TH E CIT(A)-1, HYDERABADS ORDER DATED 10-05-2018 PASSED IN CASE NO.0065/CIT(A)-1/HYD/2016-17/2018-19, IN PROCEEDING S U/S.143(3) OF THE INCOME TAX ACT, 1961 [IN SHORT, THE ACT]. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. THE ASSESSEE HAS RAISED THE FOLLOWING SUBSTANTIVE GROUNDS IN THE INSTANT APPEAL: 2. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS ) 1 ERRED IN UPHOLDING THE DISALLOWANCE OF AN AMOUNT OF RS. 7,70 ,600, BY THE ASSESSING OFFICER, TOWARDS 'EXPENDITURE BY WAY OF I NTEREST DURING THE PREVIOUS YEAR WHICH IS NOT DIRECTLY ATTRIBUTABLE TO ANY PARTICULAR INCOME OR RECEIPT' UNDER RULE 8D(2)(II) OF THE INCO ME TAX RULES. ITA NO. 1579/HYD/2018 :- 2 -: 3. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) 1 ERRED IN UPHOLDING THE ADDITION OF AN AMOUNT OF RS. 62,375 U NDER RULE 8D(2)(III) OF THE INCOME TAX RULES BY THE ASSESSING OFFICER. 3. AT THE OUTSET, LEARNED AUTHORISED REPRESENTATIVE SUBMITTED THAT THERE IS NO DIVIDEND INCOME EARNED IN TH E RELEVANT PREVIOUS YEAR. IN THIS CONNECTION, HE RELIE D ON THE FOLLOWING CASE LAW: I. CIT VS. CHETTINAD LOGISTICS PVT. LTD., [80 TAXMANN.COM 221] (MADRAS); II. CIT VS. CORRTECH ENERGY PVT. LTD., [223 TAXMAN 130] (GUJ); III. CHEMINVEST LTD., VS. CIT (2015) [378 ITR 33] (DEL) THEIR LORDSHIPS HOLD THAT SECTION 14A READ WITH RULE 8 D APPLIES ONLY IN RELATION TO AN ASSESSEES EXEMPT INCOM E AND NOT OTHERWISE. WE THEREFORE DELETE THE IMPUGNED DISALLO WANCE. 4. THIS ASSESSEES APPEAL IS ALLOWED IN ABOVE TERMS. ORDER PRONOUNCED IN THE OPEN COURT ON 29 TH JANUARY, 2021 SD/- SD/- (LAXMI PRASAD SAHU) (S.S.GO DARA) ACCOUNTANT MEMBER JUDICIAL MEM BER HYDERABAD, DATED: 29-01-2021 TNMM ITA NO. 1579/HYD/2018 :- 3 -: COPY TO : 1.ANAND ISPAT UDYOG LIMITED, C/O. M/S.SARANG SHAH & COMPANY, CHARTERED ACCOUNTANTS, 3-5-1090/A2, OPP: Y.M.C.A., NARAYANAGUDA, HYDERABAD. 2.THE DY.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.