Mabella Investment Adviser LLP, Hyderabad V. Asst. Commissioner of Income Tax, Circle-7(1), Hyderabad

ITA 2324/Hyd/2018

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 1627 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 1 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-02-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Assessment Year: 2015-2016
• Appeal Filed On: 17-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUNIL KUMAR PANDEY
• Keywords: Earning of tax free income
• Section: 143(3); 14A; 13; 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A: HYDERABAD (THROUGH VIRTUAL CONFERENCE) BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER ITA NO. 2 324 /H/201 8 ASSESSMENT YEAR: 2015 - 16 MABELLA INVESTMENT ADVISER LLP, HYDERABAD. PAN AAEF 14062 N VS. ASST. COMMISSIONER OF INCOME - TAX, CIRCLE 7(1), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: SHRI T. CHAITANYA KUMAR REVENUE BY: SHRI S UNIL KUMAR PANDEY DATE OF HEARING: 04/02/2021 DATE OF PRONOUNCEMENT: 16 /0 2 /2021 O R D E R PER BENCH: THIS ASSESSEES APPEAL IS DIRECTED AGAINST THE CIT (A) , H YDERABADS ORDER DT. 08 / 10 /201 8 PASSED IN CASE NO. 10382/ ACIT - 7(1)/HYD/ CIT(A) - 3/ 2017 - 18 INVOLVING PROCEEDINGS U/S 143(3) OF THE INCOME - TAX ACT, 1961; IN SHORT THE ACT. HEARD BOTH THE PARTIES. CASE FILE S PERUSED. I TA NO. 2324 /H YD /1 8 MABELLA INVESTMENT ADVISER LLP, HYD. : - 2 - : 2 . IT TRANSPIRES DURING THE COURSE OF HEARING THAT BOTH THE LOWER AUTHORITIES HAVE INVOKE D SECTION 14A RW R ULE 8D DISALLOWING OF RS. 34,11,706/ - DESPITE THE FACT THAT THE ASSESSEE HAS NOT DERIVED ANY EXEMPT INCOME IN THE RELEVANT PREVIOUS YEAR . CASE LAW CHEMINVEST LTD. V. CIT [2015] 378 ITR 33 (DELHI), CIT VS. CHETTINAD LOGISTICS PVT. LTD. 80 TAXMAN..COM 221 (MADRAS) AND CIT VS CORRTECH E NERGY PVT. LTD. 223 TAXMAN 13 (GUJ.) HOLD THAT NO DISALLOWANCE UNDER THE IMPUGNED STATUTORY PROVISION ( S ) CAN BE MADE IN THE ABSENCE OF ANY EXEMPT INCOME DERIVED IN THE RELEVANT PREVIOUS YEAR . WE THEREFORE DIRECT THE A SSESSING O FFICER TO DELETE THE IMPUGNED DISALLOWANCE FOR THIS PRECISE REASON A LONE . 4. THIS ASSESSEES APPEAL IS ALLOWED IN ABOVE TERMS. PRONOUNCED IN THE OPEN COURT ON 16 TH FEBRUARY , 2021 . SD/ - SD/ - ( LAXMI PRASAD SAHU) ( S.S. GODARA ) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDE RABAD, DATED : 16 TH FEBRUARY , 20 2 1 . K V I TA NO. 2324 /H YD /1 8 MABELLA INVESTMENT ADVISER LLP, HYD. : - 3 - : C OPY TO : 1 MABELLA INVESTMENT ADVISER LLP, C/O T. CHAITANYA KUMAR, ADVOCATE, FLAT NO. 102, GOWRI APTS., URDU LANE, HIMAYATHNAGAR, HYDERABAD. 2 ACIT, CIRCLE 7(1), HYDERABAD 3 CIT(A) 3, HYDERABAD. 4 PCIT 3, HYDERABAD. 4 ITAT, DR, HYDERABAD. 5 GUARD FILE.