DCIT Corporate Circle 3(1), CHENNAI V. Tamilnadu Power Finance & Infrastructure Development Corpn Ltd., CHENNAI

ITA 2282/CHNY/2019

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 0599 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-12-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2013-2014
• Appeal Filed On: 09-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R ANITA
• Assessee Lawyers: R VIJAYARAGHAVAN
• Keywords: Earning of tax free income
• Section: 201

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH: CHENNAI , . , BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN , ACCOUNTANT MEMBER ./ ITA NO. 2282 /CHNY/ 201 9 / ASSESSMENT YEAR: 201 3 - 1 4 THE D EPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE - 3(1), NEW BLOCK, ROOM NO.411,4 TH FLOOR, 121, MAHATMA GANDHI ROAD, NUNGAMBAKKAM, CHENNAI 600 034. VS. M/S. TAMIL NADU POWER FINANCE AND INFRA DEVELOPMENT CORPORATION LIMITED, TUDIFCO POWERFIN TOWER, NO.490/3 - 4, ANNA SALAI, NANDANAM, CHENNAI 600 035. [PAN: A AACT 2840A] ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MS. R. ANITA , JCIT /RESPONDENT BY : MR. R. VIJAYARAGHAVAN , ADVOCATE / DATE OF HEARING : 0 4 . 1 2 .2019 / DATE OF PRONOU NCEMENT : 0 4 .12 .2019 / O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER : THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE LEARNED COMMIS SIONER OF INCOME TAX (APPEALS) - 11 , CHENNAI I N ITA NO. 367/2016 - 17/CIT(A) - 11 DATED 30 .0 5 .201 9 FOR TH E ASSESSMENT YEAR 201 3 - 1 4 AGAINST THE REDUCTION OF THE DISALLOWANCE U/S.14A FROM RS.7.39 CRORES AS MADE BY THE ASSESSING OFFICER TO RS.39,70,832/ - BY THE LEARNED CIT(A) . ITA NO. 2282 / CHNY / 201 9 : - 2 - : 2. MS. R. ANITA , JCIT REPRESENTED ON BEHALF OF THE REVENUE AND SHRI MR. R. VIJAYARAGH AVAN , ADVOCATE REPRESENTED ON BEHALF OF THE ASSESSEE . 3. THE LEARNED DEPARTMENTAL REPRESENTATIVE SUPPORTED THE ORDER THE LEARNED ASSESSING OFFICER. 4. IN REPLY, IT WAS SUBMITTED BY THE LEARNED AUTHORIZED REPRESENTATIVE THAT THE ACTUAL EXEMPT INCOME EARNE D BY THE ASSESSEE WAS ONLY RS.1,12,921/ - . IT WAS A SUBMISSION THAT IN VIEW OF THE DECISION OF THE HONBLE DELHI HIGH COURT IN THE CASE OF JOINT INVESTMENT PRIVATE LIMITED VS. COMMISSIONER OF INCOME TAX REPORTED IN 372 ITR 694 WHICH HAS ALSO BEEN UPHELD BY THE HONBLE SUPREME COURT BY DISMISSAL OF THE SLP IN THE CASE OF ABCAUS REPORTED IN 2639 (2018)(11) SC, THE DISALLOWANCE WAS LIABLE TO BE RESTRICTED TO THE EXEMPT INCOME. IT WAS HOWEVER A SUBMISSION THAT THE ASSESSEE HAS NOT FILED AN APPEAL. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSION AND PERUSED THE MATERIALS AVAILABLE ON RECORD. 6. AS IT IS NOTICED, THE ASSESSEE HAS NOT FILED AN APPEAL AGAINST THE CONFIRMATION OF THE DISALLOWANCE U/S.14A AT RS.39,70,832/ - AND AS THE REVENUE HAS NOT BEEN ABLE TO POINT OUT ANY ERROR IN THE ORDER OF THE LEARNED CIT(A) IN RESTRICTING THE DISALLOWANCE U/S.14A TO RS.39,70,832/ - , BEING 0.5% OF ITA NO. 2282 / CHNY / 201 9 : - 3 - : THE AVERAGE VALUE OF THE INVESTMENT , T HE ORDER OF THE LEARNED CIT(A) ON THE ISSUE STANDS CONFIRMED. 7 . IN THE RESULT, THE APPE AL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 4 TH DECEMBER , 2019 IN CHENNAI. SD/ - ( . ) ( S. JAYARAMAN ) /ACCOUNTANT MEMBER / CHENNAI, / DATED: 4 TH DECEMBER , 2 019 . IA, SR. PS SD/ - ( ) (GEORGE MATHAN) /JUDICIAL MEMBER / COPY TO: 1. / APPELLANT 2. / RESPONDENT 3. ( ) / CIT(A) 4. / CIT 5. / DR 6. / GF