Dy. Commissioner of Income Tax , Circle-1(2), Hyderabad V. Cyient Limited, Hyderabad

ITA 1588/Hyd/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 3907 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 6 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-05-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB-B
• Assessment Year: 2016-2017
• Appeal Filed On: 30-10-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Earning of tax free income; Rule 8D
• Section: 143(3); 14A; 201; 22

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES : BENCH B HYDERABAD (THROUGH VIDEO CONFERENCE ) BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER I.T.A. NO. 1588 /HYD./2019 ASSESSMENT YEAR : 201 6 - 17 DY.CIT, CIRCLE 1(2) VS. M/S CYIENT LIMITED HYDERABAD HYDERABAD [PAN: AAAC I4487J ] (APPELLANT) (RESPONDENT) FOR REVENUE: SHRI ROHIT MUJUMDAR, D.R. FOR ASSESSEE: SHRI P AWAN KUMAR CHAKRAPANI, AR DATE OF HEARING : 18 /0 3 /2021 DATE OF PRONOUNCEMENT : 28 /05/2021 O R D E R PER S.S. GODARA, J.M. THIS R EVENUES APPEAL FOR AY 201 6 - 17 ARISES FROM CIT(A) - 1 HYDERABADS ORDER DATED 27.08.2019 PASSED IN CASE NO. 10412/ 201 8 - 19 INVOLVING P ROCEEDINGS U/S 143(3) OF THE INCOME TAX ACT, 1961 FOR SHORT THE ACT. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. THE REVENUES SOLE SUBSTANTIVE GRIEVANCE RAISED IN THE INSTANT APPEAL CHALLENGES CORRECTNESS OF THE CIT(A)S ORDER RESTRICTING 14A RW RULE 8D DISALLOWANCE OF RS.1 , 79 , 22 , 911/ - TO THE EXTENT OF ASSSESSEES INVESTMENTS RELATING TO EXEMPT INCOME ONLY AS PER TRIBUNALS ORDER IN ITA 1462/H/17 FOR 2 AY 2015 - 16 IN ASSESSEES OWN CASE ITSELF. THERE HAS BEEN NO ILLEGALITY OR IR REGULARITY POINTED OUT FROM THE REVENUE SIDE IN SO FAR AS CORRECTNESS OF CIT(A)S FINDINGS IN PRINCIPLE ARE CONCERNED. HONBLE CALCUTTA HIGH COURTS DECISION IN CIT VS. R EI AGRO PVT. LTD. GA 3022 OF 2013 ITAT 1611/2013 DT. 23.12.2013 HAS ALREADY SETT LED THE ISSUE THAT ONLY THE EXEMPT INCOME YIELDING INVESTMENT S HAVE TO BE CONSIDERED IN COMPUTING THE IMPUGNED DISALLOWANCE THAN ENTIRE SUMS THEREOF . WE THUS DECLINE R EVENUES INSTANT SOLE SUBSTANTIVE GRIEVANCE FOR THIS PRECISE REASON ALONE. 4. THIS R EVENUES APPEAL IS DISMISSED . PRONOUNCED IN OPEN COURT ON 28 TH MAY, 2021. SD/ - SD/ - (L.P. SAHU) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: THE 28 TH MAY, 2021. * GMV COPY OF THE ORDER FORWARDED TO: 1. M/S CYIENT LIMITED, 4 TH FLOOR, A WING, PLOT NO.11, SOFTWARE UNITS LAYOUT INFOCITY, MADHAPUR, HYDERABAD 500 081. 2. DY.CIT, CIRCLE 1(2), HYDERABAD. 3. CIT(A) - 1 , HYDERABAD. 4 . PR.CIT - 1 , HYDERABAD 5 . DR, ITAT, HYDERABAD. 6 . GUARD FILE.