Nivee Property Developers Private Limited, Hyderabad, Hyderabad V. Income Tax Officer, Ward-16(2), Hyderabad

ITA 2042/Hyd/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 5997 (ITAT-HYDERABAD)
• Duration Of Justice: 5 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 07-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M SITHARAAM
• Assessee Lawyers: P MURALI MOHAN RAO
• Keywords: Earning of tax free income
• Section: 14A

Judgement Text

ITA NO 2042 OF 2017 NIVEE PROPERTY DE VELOPERS P LTD HYDERABAD. PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER ITA NO.2042/HYD/2017 (ASSESSMENT YEAR: 2013-14) M/S. NIVEE PROPERTY DEVELOPERS PVT LTD HYDERABAD PAN: AABCN5025G VS INCOME TAX OFFICER WARD 16 (2) HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI P. MURALI MOHAN RAO FOR REVENUE : SHRI M. SITHARAAM, DR O R D E R PER SMT. P. MADHAVI DEVI, J.M. THIS IS ASSESSEES APPEAL FOR THE A.Y 2013-14. IN T HIS APPEAL, THE ASSESSEE IS AGGRIEVED BY THE ORDER OF T HE LEARNED CIT (A)-4, HYDERABAD, DATED 21.10.2017 CONFIRMING THE D ISALLOWANCE MADE BY THE AO U/S 14A OF THE ACT. 2. IT IS THE CASE OF THE LEARNED COUNSEL FOR THE AS SESSEE THAT THE DISALLOWANCE U/S 14A SHOULD BE RESTRICTED TO THE EXTENT OF EXEMPT INCOME. HE HAS DRAWN OUR ATTENTION TO THE FACTS RECORDED IN THE ASSESSMENT ORDER THAT THE ASSESSEE HAS EARNED A DIVIDEND INCOME OF RS.1,79,646 ONLY WHEREAS THE AO HAS MADE THE DISALLOWANCE OF RS.11,43,762 U/S14A OF THE ACT AND BROUGHT IT TO TAX. HE PLACED RELIANCE UPON THE DECISIONS OF THE COORDINATE DATE OF HEARING: 24.05.2018 DATE OF PRONOUNCEMENT: 3 1 . 0 5 .2018 ITA NO 2042 OF 2017 NIVEE PROPERTY DE VELOPERS P LTD HYDERABAD. PAGE 2 OF 2 BENCH OF THE TRIBUNAL AS WELL AS THE HON'BLE DELHI HIGH COURT IN THE CASE OF ACB INDIA LTD VS. ACIT REPORTED IN (201 5) 62 TAXMANN.COM 71(DEL.) TO CONTENT THAT THE DISALLOWAN CE U/S 14A SHOULD NOT EXCEED THE EXEMPT INCOME. 3. THE LEARNED DR WAS ALSO HEARD. 4. WE FIND THAT THIS ISSUE IS NOW COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISIONS OF VARIOUS BENCHES OF THE TRIBUNAL AND ALSO THE HON'BLE DELHI HIGH COURT IN THE CASE OF AC B INDIA LTD (SUPRA). RESPECTFULLY FOLLOWING THE SAME, WE DIRECT THE AO TO RESTRICT THE DISALLOWANCE U/S 14A OF THE ACT TO THE EXEMPT INCOME EARNED BY THE ASSESSEE. 5. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST MAY, 2018. SD/- SD/- (B. RAMAKOTAIAH) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 31 ST MAY 2018. VINODAN/SPS COPY TO: 1 P. MURALI & CO. CAS, 6-3-655/2/3, 1 ST FLOOR, SOMAJIGUDA, HYDERABAD 500082 2 ITO WARD 16(2) HYDERABAD 3 CIT (A)-4 HYDERABAD 4 PR. CIT 4, HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER