M/s Teamlease Services Pvt Ltd, Mumbai V. The Deputy Commissioner of Income Tax Circle-3(3)(2), Mumbai

ITA 2416/BANG/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 2121 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 8 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-04-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 21-08-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Earning of tax free income
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : BANGALORE BEFORE SHRI N. V. VASUDEVAN, VICE PRESIDENT AND SHRI A. K. GARODIA, ACCOUNTANT MEMBER ITA NO. 2 4 16 /BANG/201 8 ASSESSMENT YEAR : 2013 14 M/S TEAMLEASE SERVICES PVT. LTD., OFFICE NO. 6, 3 RD FLOOR, C WING, LAXMI TOWERS, BANDRA KURLA COMPLEX, BANDRA (E), MUMBAI 400051. PAN : AABCT5458K VS. DCIT CIRCLE 3 (3) (2), MUMBAI. APPELLANT RESPONDENT ASSESSEE BY : S MT. SHEETAL, ADVOCATE REVENUE BY : S HREE PRADEEP KUMAR , CIT DR DATE OF HEARING : 1 2 .03.2020 DATE OF PRONOUNCEMENT : 29.04.2020 O R D E R PER A. K. GARODIA, A. M. : THIS APPEAL IS FILED BY THE ASSESSEE AND THE SAME IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A) 8, MUMBAI DATED 18.06.201 8 FOR THE ASSESSMENT YEAR 2013 14. 2. IN THIS APPEAL, THE ASSESSEE HAS RAISED SEVERAL GROUNDS AND THREE ADDITIONAL GROUNDS. LEARNED AR OF THE ASSESSEE SUBM ITTED THAT GROUND NO. 4 IS NOT PRESSED AND THIS GROUND IS REJECTED AS NOT PRESSED. SHE ALSO SUBMITTED THAT THERE ARE ONLY TWO ISSUES TO BE DECI DED. FIRST ISSUE IS ABOUT DISALLOWANCE OF RS. 175,756/- U/S 14A AND THE SECON D ISSUE RAISED BY WAY OF ADDITIONAL GROUND IS ABOUT DISALLOWANCE OF R S. 54,59,156/- ITA NO. 2416/BANG/2018 PAGE 2 OF 3 CLAIMED BY THE ASSESSEE AS ESOP EXPENSES. THERE IS ONE MORE GROUND ABOUT DISALLOWANCE OF RS. 41,38,909/- AS CAPITAL EX PENDITURE BUT FOR THIS GROUND, NO ARGUMENT WAS ADVANCED BY THE LEARNED AR OF THE ASSESSEE AND HENCE, WE INFER THAT THIS GROUND IS NOT PRESSED AND WE REJECT IT AS NOT PRESSED. 3. IN COURSE OF HEARING, LEARNED AR OF THE ASSESSEE SUBMITTED THAT THE ASSESSEE HAS NOT EARNED ANY EXEMPT INCOME IN TH E PRESENT YEAR AND THEREFORE, NO DISALLOWANCE CAN BE MADE U/S 14A. THE BENCH OBSERVED THAT SCHEDULE 20 OF THE AUDITED ACCOUNTS IS ABOUT O THER INCOME AND IT INCLUDES AN ITEM OTHER INCOME RS. 33,14,484/- B UT ITS DETAILS ARE NOT AVAILABLE. IN REPLY, LEARNED AR OF THE ASSESSEE SUB MITTED THAT SUCH DETAILS ARE NOT READILY AVAILABLE AND HENCE, THE MA TTER MAY BE RESTORED TO AO FOR A FRESH DECISION AND IF IT IS DONE, THE ASSE SSEE WILL FURNISH THE REQUIRED DETAILS. ABOUT ADDITIONAL GROUND IN RESPEC T OF ESOP EXPENSES, SHE SUBMITTED THAT THIS ISSUE WAS NOT RAISED BEFORE CIT (A) AND THEREFORE, ON THIS ISSUE, THERE IS NO DECISION OF CIT (A) BUT THIS ISSUE IS RAISED BEFORE THE TRIBUNAL BY WAY OF AN ADDITIONAL GROUND IN VIEW OF SUBSEQUENT DEVELOPMENT OF LAW IN THE FORM OF SEVERAL JUDGMENTS AND THEREFORE, THE ADDITIONAL GROUND SHOULD BE ADMITTED AND THE MATTE R MAY BE RESTORED TO CIT (A) FOR A DECISION. LEARNED DR OF THE REVENUE S UPPORTED THE ORDERS OF THE LOWER AUTHORITIES. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FEE L IT PROPER TO RESTORE BOTH THESE ISSUES I.E. THE ISSUE ABOUT DISA LLOWANCE U/S 14A AND DISALLOWANCE OF ESOP EXPENSES TO CIT (A) BECAUSE TH IS FACT IS NOT CLEAR AS TO WHETHER THE ASSESSEE EARNED ANY EXEMPT INCOME IN THE PRESENT YEAR OR NOT. ABOUT ESOP EXPENSES DISALLOWANCE, WE ADMIT THE ADDITIONAL ITA NO. 2416/BANG/2018 PAGE 3 OF 3 GROUND BECAUSE THE ISSUE INVOLVED IS A LEGAL ISSUE AND FACTS ARE AVAILABLE ON RECORD BUT THERE IS NO DECISION OF CIT (A) ON TH IS ISSUE AS THE SAME WAS NOT RAISED BEFORE CIT (A). WE ORDER ACCORDINGLY . LEARNED CIT (A) SHOULD PROVIDE ADEQUATE OPPORTUNITY OF BEING HEARD TO BOTH SIDES. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE. SD/- SD/- (N. V. VASUDEVAN) (A.K. GARODIA) VICE PRESIDENT ACCOUNTANT MEMBER BANGALORE, DATED: 29 TH APRIL, 2020. /NS/* COPY TO: 1. APPELLANTS 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, ITAT, BANGALORE.