The DCIT, Circle-1, Ahmedabad V. M/s. Arunodaya Credit & Holding Inv. Pvt. Ltd., Ahmedabad

ITA 1759/AHD/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 6132 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 10 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-04-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 13-04-2017
• Assessment Year: 2008-2009
• Appeal Filed On: 09-06-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ASEEM L THAKKAR AR
• Keywords: Earning of tax free income; Proportionate interest; Tax effect

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD , , BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER AND SHRI MAHAVIR PRASAD, JUDICIAL MEMBER ./ I.T.A. NO.1759/AHD/2014 ( / ASSESSMENT YEAR : 2008-09) THE DCIT CIRCLE-1 AHMEDABAD / VS. M/S.ARUNODAYA CREDIT & HOLDING INV. PVT.LTD. 1/2, AKANSHA APARTMENT NR.RLY.CROSSING SOLA ROAD, GHATLODIYA AHMEDABAD # ./ ./ PAN/GIR NO. : AABCA 3079 P ( #& / APPELLANT ) .. ( '#& / RESPONDENT ) #&( / APPELLANT BY : SHRI JAMES KURIAN, SR.DR '#& )( / RESPONDENT BY : SHRI ASEEM L.THAKKAR, AR *+ ), / DATE OF HEARING 13/04/2017 -./0 ), / DATE OF PRONOUNCEMENT 19 / 04 /2017 / O R D E R PER PRADIP KUMAR KEDIA, AM: THE CAPTIONED APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS)-6, AHMED ABAD [CIT(A) IN SHORT] DATED 03/04/2014 FOR THE ASSESSMENT YEAR (AY) 2008-09. ITA NO. 1759/AH D/2014 DCIT VS. ARUNODAYA CREDIT & HOLDING INV.P.LTD. ASST.YEAR 2008-09 - 2 - 2. THE GROUNDS OF APPEAL RAISED BY THE REVENUE REA D AS UNDER:- 1. THE CIT(A) HAS ERRED IN LAW AND ON FACTS BY DE LETING THE DISALLOWANCE OF RS.13.31 LACS MADE U/S.14A R.W.S.8D (2)(II) DESPITE THE FACT THAT THE ASSESSEE HAD EARNED EXEMPT INCOME U/S.10(2A) AND 10(34) AND HAD MADE INVESTMENTS OF RS.2.84 CROR ES IN SHARES. THE AO HAD ONLY DISALLOWED PROPORTIONATE INTEREST E XPENSES UNDER RULE 8D(2)(II). 2. THE CIT(A) HAS OVERLOOKED THE FACT THAT DURING THE YEAR THE ASSESSEE HAD ONLY SHOWN INCOME FROM DIVIDEND, INTER EST, STCG AND SHARE OF PROFIT FROM FIRM AND HAD NOT MAINTAINE D SEPARATE RECORDS OF EXPENSES ATTRIBUTABLE TO EARNING EXEMPT INCOME. 3. AT THE TIME OF HEARING, IT WAS SUBMITTED BY THE LD.AR FOR THE ASSESSEE THAT APPEAL FILED BY THE REVENUE IS HIT BY CBDT CIRCULAR NO.21 OF 2015 DATED 10/12/2015. AS PER AFORESAID CIRCULA R, ALL PENDING APPEALS FILED BY REVENUE ARE LIABLE TO BE DISMISSED AS A ME ASURE FOR REDUCING LITIGATION WHERE THE TAX EFFECT DOES NOT EXCEED THE PRESCRIBED MONETARY LIMIT WHICH IS RS.10 LAKHS. IN THE INSTANT CASE, T HE TAX EFFECT ON THE DISPUTED ISSUE RAISED BY THE REVENUE IS STATED TO B E LESS RS.10 LAKHS AND THEREFORE APPEAL OF THE REVENUE IS REQUIRED TO BE D ISMISSED IN LIMINE . 4. THE LD.DR FOR THE REVENUE FAIRLY ADMITTED THE AP PLICABILITY OF THE CBDT CIRCULAR NO.21 OF 2015. ACCORDINGLY, APPEAL OF THE REVENUE IS DISMISSED AS NOT MAINTAINABLE. HOWEVER, IT WILL BE OPEN TO THE REVENUE TO SEEK RESTORATION OF ITS APPEAL ON SHOWING INAPPL ICABILITY OF THE AFORESAID CBDT CIRCULAR IN ANY MANNER. ITA NO. 1759/AH D/2014 DCIT VS. ARUNODAYA CREDIT & HOLDING INV.P.LTD. ASST.YEAR 2008-09 - 3 - 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DIS MISSED. THIS ORDER PRONOUNCED IN OPEN COURT ON 19 / 0 4 /201 7 SD/- SD/- ( ) ( ) ( MAHAVIR PRASAD ) ( PRADIP KUMAR KEDIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED 19/ 04 /2017 4..*,.*../ T.C. NAIR, SR. PS !'#$#! / COPY OF THE ORDER FORWARDED TO : 1. #& / THE APPELLANT 2. '#& / THE RESPONDENT. 3. 567, 8, / CONCERNED CIT 4. 8, ( ) / THE CIT(A)-6, AHMEDABAD 5. 9:;,*67 , 67 0 , 5 / DR, ITAT, AHMEDABAD 6. ;<+ / GUARD FILE. / BY ORDER, '9,, //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION .. 13.4.17 (COVERED CASE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 13.4.17 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S.19.4.17 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 19.4.17 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER