Asst. Commissioner of Income Tax, Circle-16(1), Hyderabad V. Lanco Power Limited, Hyderabad, Hyderabad

ITA 1980/Hyd/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 6556 (ITAT-HYDERABAD)
• Duration Of Justice: 7 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-07-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 24-07-2018
• Assessment Year: 2013-2014
• Appeal Filed On: 01-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J SIRI KUMAR
• Assessee Lawyers: P MURALI MOHAN
• Keywords: Earning of tax free income
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO. 1980/HYD/2017 ASSESSMENT YEAR: 2013-14 ACIT CIRCLE 16(1) HYDERABAD. VS. LANCO POWER LIMITED HYDERABAD. PAN AABCH5150J (APPLICANT) (RESPONDENT) REVENUE BY : SHRI J. SIRI KUMAR ASSESSEE BY : SHRI P. MURALI MOHAN DATE OF HEARING : 24-07-2018 DATE OF PRONOUNCEMENT : 24-07-2018 ORDER PER P. MADHAVI DEVI, J.M.: THIS IS REVENUES APPEAL FOR THE A.Y 2013-14 AGAINST THE ORDER OF THE CIT(A)-4, HYDERABAD DATED 11.09.2017. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL. 1. THE CIT(A) ERRED IN DELETING THE DISALLOWANCE U/S 14A OF RS. 12,89,04,000/- 2. THE CIT(A) ERRED IN IGNORING CBTDS CIRCULAR NO. 5 OF 2014 DATED 11.02.2014. 3. THE CIT(A) ERRED IN IGNORING THE SUPREME COURT DECISION IN THE CASE OF CIT VS. WALFORT SHARE OF STOCK BROKERS PVT LTD., (326 ITR 1), WHEREIN IT WAS HELD THAT THE MANDATE OF SEC. 14A WAS TO CURB THE PRACTICE OF CLAIMING DEDUCTION OF EXPENSES INCURRED IN RELATING TO EXEMPT INCOME AGAINST TAXABLE INCOME AND AT THE SAME TIME AVAIL OF THE TAX INCENTIVE BY WAY OF EXEMPT INCOME WITHOUT MAKING ANY APPORTIONMENT OF EXPENSES INCURRED IN RELATION TO EXEMPT INCOME. 2 ITA.NO. 1980/HYD/2017 LANCO POWER LIMITED, HYDERABAD. 4. ANY OTHER GROUND THAT MAY BE URGED AT THE TIME OF HEARING. 2. ON HEARING BOTH THE PARTIES IT IS SEEN THAT THIS ISSUE IS NOW COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF THE HONBLE DELHI HIGH COURT IN THE CASE OF CHEMINVEST LTD., REPORTED IN (2015) 378 ITR 33 (DEL), WHEREIN IT WAS HELD THAT SEC. 14A OF THE IT ACT WILL NOT APPLY WHERE NO EXEMPT INCOME IS RECEIVED / RECEIVABLE DURING THE RELEVANT ASSESSMENT YEAR. WE FIND THAT THE CIT(A) HAS FOLLOWED THE DECISIONS OF THE COORDINATE BENCHES OF THE TRIBUNAL, WHEREIN THE DECISION OF THE HONBLE DELHI HIGH COURT HAS BEEN FOLLOWED. IN VIEW OF THE SAME, WE SEE NO REASON TO INTERFERE WITH THE ORDER OF THE CIT(A). ACCORDINGLY, THE REVENUE APPEAL IS DISMISSED. 3. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. PRONOUNCED IN THE OPEN COURT ON 24 TH JULY, 2018. SD/- SD/- (S. RIFAUR RAHMAN) (P. MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED: 24 TH JULY, 2018 KRK 1) M/S LANCO POWER LIMITED, LANCO HOUSE, PLOT NO.4, SOFTWARE UNITS LAYOUT, HITEC CITY, MADHAPUR, HYDERABAD 81. 2) THE ACIT, CIRCLE - 16(1) HYDERABAD. 3) CIT(A)-4, HYDERABAD 4) ADDL.CIT, RANGE-16, HYDERABAD. 5) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDERABAD. 6) GUARD FILE.