Deputy Commissioner of Income Tax Circle-7(1)(2), Bangalore V. M/s Von Roll India Pvt Ltd , Bangalore

ITA 1711/BANG/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 0170 (ITAT-BANGALORE)
• Duration Of Justice: 3 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-09-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 22-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SRINANDINI DAS
• Keywords: Earning of tax free income; Tax effect
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SHRI ARUN KUMAR GARODIA, ACCOUNTANT MEMBER A ND SHRI LALIET KUMAR, JUDICIAL MEMBER ITA NO. 1 711 /BANG/201 8 ASSESSMENT YEAR : 20 10 - 11 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 7 (1) (2), BANGALORE. VS. M/S. VON ROLL INDIA PVT. LTD., PLOT NO. 507, 4 TH PHASE, 2 ND STAGE, PEENYA INDUSTRIAL AREA, BANGALORE 560 058. PAN: AAACV9483H APPELLANT RESPONDENT ASSESSEE BY : NONE RE VENUE BY : SMT. SRINANDINI DAS, ADDL. CIT (DR) DATE OF HEARING : 1 8 . 0 9 .2018 DATE OF PRONOUNCEMENT : 20 . 0 9 .2018 O R D E R PER SHRI A.K. GARODIA, ACCOUNTANT MEMBER THIS APPEAL IS FILED BY THE REVENUE AND THE SAME IS DIRECTED AGAINST THE ORDER OF LD. CIT(A)-7, BANGALORE DATED 16.03.2018 FOR ASSESS MENT YEAR 2010-11. 2. THE GROUNDS RAISED BY THE REVENUE ARE AS UNDER. 1. THE ORDER OF THE LEARNED CIT (A) IS OPPOSED TO L AW AND FACTS OF THE CASE. 2. 'WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE C ASE, THE CIT(A) WAS RIGHT IN DELETING THE DISALLOWANCE OF EXPENSES COMPUTED U/S 14A RWR 8D '? 3. 'WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE C ASE, THE CIT(A) HAD NOT ERRED IN NOT CONSIDERING THE CBDT CIRCULAR NO. 5/2014, WHICH MADE IT CLEAR THAT EARNING OF EXEMPT INCOME W AS NOT MANDATORY FOR DISALLOWANCE U/S 14A OF THE IT ACT. '? 4. FOR THIS AND OTHER GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING, IT IS PRAYED THAT THE ORDER OF THE CIT(A) IN SO FAR AS IT RELATES ITA NO.1711/BANG/2018 PAGE 2 OF 2 TO THE ABOVE GROUNDS MAY BE REVERSED AND THAT OF TH E ASSESSING OFFICER MAY BE RESTORED. 5. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND AND/OR DELETE ANY OF THE GROUNDS MENTIONED ABOVE. 3. IN THIS CASE AS PER THE RETURN OF INCOME FILED B Y THE ASSESSEE THE TOTAL INCOME IS RS. 61,83,862/- AND THE ASSESSED INCOME AS PER THE ASSESSMENT ORDER IS RS. 73,19,268/- AND HENCE, THE TOTAL ADDITION MADE BY T HE AO IS OF RS. 11,35,406/- ONLY AND THEREFORE, EVEN IF THE ENTIRE SUCH ADDITIO N IS DELETED BY CIT(A) AND THE REVENUE IS IN APPEAL FOR ENTIRE DELETION THEN ALSO TAX EFFECT IN THE PRESENT APPEAL OF REVENUE IS BOUND TO BE BELOW RS. 20 LAKHS AND TH EREFORE, AS PER THE RECENT CBDT INSTRUCTIONS AS PER CIRCULAR NO. 3/2018 DATED 11.07.2018, THIS APPEAL OF THE REVENUE IS NOT MAINTAINABLE. ACCORDINGLY, THIS APPEAL OF THE REVENUE IS DISMISSED BECAUSE OF LOW TAX EFFECT. 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE MENT IONED ON THE CAPTION PAGE. SD/- SD/- (LALIET KUMAR) (ARUN KUMAR GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER BANGALORE, DATED, THE 20 TH SEPTEMBER, 2018. /MS/ COPY TO: 1. APPELLANT 4. CIT(A) 2. RESPONDENT 5. DR, ITAT, BANGALORE 3. CIT 6. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY, INCOME TAX APPELLATE TRIBUNAL, BANGALORE.