Associated Broadcasting company Private Limited , Hyderabad V. Income Tax Officer, Ward-14(5), Hyderabad

ITA 1853/Hyd/2019

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 8598 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-01-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Assessment Year: 2014-2015
• Appeal Filed On: 23-12-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: Y V S T SAI
• Keywords: Earning of tax free income; Proportionate interest; Rule 8D
• Section: 92CA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES : BENCH B HYDERABAD (THROUGH VIDEO CONFERENCE ) BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER E.H. NO. 35/HYD/2020 & ITA NO. 1853/HYD/2019 ASSESSMENT YEAR: 20 14 - 15 ASSOCIATED BROADCASTING COMPANY PRIVATE LIMITED HYDERABAD P AN: A AECA2935P VS. THE I.T.O. WARD 14 ( 5 ) HYDERABAD (ASSESSEE APPELLANT) (RESPONDENT) ASSESSEE BY: SRI RAVI BHARADWAJ, ADV. REVENUE BY : SRI Y.V.S.T. SAI, CIT, DR DATE OF HEARING: 08/01/2021 DATE OF PRONOUNCEMENT: 11 /01/2021 ORDER PER BENCH THIS ASSESSEES APPEAL FOR AY.2014 - 15 ARISES FROM THE CIT(A) - 6 , HYDERABADS ORDER DATED 30.09.2019 PASSED IN CASE NO. 10153 / 2017 - 18/A3/CIT(A) - 6 , IN PROCEEDINGS U/S.14 3(3) R.W.S. 92CA OF THE INCOME TAX ACT, 1961 [IN SHORT, THE ACT]. 2. WHILE DEALING WITH T HE ASSESSEES INSTANT EARLY HEARING APPLICATION, IT TRANSPIRE S DURING THE COURSE OF HEARING THAT ITS SOLE SUBSTANTIVE GRIEVANCE RAISED IN THE MAIN APPEAL SEEKS TO DELETE S.14A R.W.RULE 8D (2)(II) PROPORTIONATE INTEREST DISALLOWANCE OF RS.64 , 39 , 580 / - MADE IN BOTH THE LOWER PROCEEDINGS. WE NOTICE THAT THE ASSESSEE HAS NOT DERIVED ANY EXEMPT INCOME IN THE RELEVANT P REVIOUS YEAR. WE RELY ON THE FOLLOWING CASE LAWS: ITA NO. 1853/H19 AY 2014 - 15 ASSOCIATED BROADCASTING CO.PVT.LTD. 2 (I) CHEMINVEST LTD. VS. CIT (2015) 378 ITR 33 (DELHI); (II) CIT VS. CORRTECH ENERGY PVT.LTD. (2014) 223 TAXMAN 130 (GUJ.); (III) CIT VS. SHIVAM MOTORS (20 15) 230 TAXMAN 63 (ALL); (IV) CIT VS. CHETTINAD LOGISTICS PVT. LTD. (2017) 80 TAXMANN 55 (MAD) TO HOLD THAT THE IMPUGNED DISALLOWANCE PROVISION APPLIES ONLY IN RELATION TO EXEMPT INCOME THAN IN ABSENCE THEREOF. WE THUS DELETE THE IMPUGNED SEC.14A DISALLOW ANCE ITSELF FOR THIS PRECISE REASON ALONE. ORDERED ACCORDINGLY. THE ASSESSEES MAIN APPEAL ITA 1853/HYD/19 IS ALLOWED WHEREAS ITS EARLY HEARING PETITION E.H.NO.35/HYD/2020 IS DISMISSED SINCE RENDERED INFRUCTUOUS. PRONOUNCED IN OPEN COURT ON 11 TH JANUARY, 2021. SD/ - SD/ - (LAXMI PRASAD SAHU) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: THE 11 TH JANUARY, 2021. * GMV COPY OF THE ORDER FORWARDED TO: 1. AS S OCIATED BROADCASTING COMPANY PRIVATE LTD., PLOT NO.97, ROAD NO.3, BANJARA HILLS, HYDERABAD 500 034. 2. ITO, WARD 14(5), HYDERABAD 3. ACIT, RANGE 14 , HYDERABAD. 4. CIT(A) - 6 , HYDERABAD. 5. PR.CIT - 6 , HYDERABAD 6. DR, ITAT, HYDERABAD. 7. GUARD FILE.