Deputy Commissioner of Income Tax Circle-1(1)(2), Bangalore V. M/s Bydesign India Pvt Ltd , Bangalore

ITA 269/BANG/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 9904 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 1 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-03-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 21-03-2019
• Assessment Year: 2013-2014
• Appeal Filed On: 31-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect; Rule 8D
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SHRI ARUN KUMAR GARODIA, ACCOUNTANT MEMBER AND SHRI LALIET KUMAR, JUDICIAL MEMBER ITA NO. 269 / BANG/201 8 ASSESSMENT YEAR : 2 0 13 - 14 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 1 (1) (2), BANGALORE. VS. M/S. BYDESIGN INDIA PVT. LTD., VELANKANI CAMPUS, PHASE 1, ELECTRONICS CITY PHASE 1, BANGALORE 560 100. PAN: AABCB5845J APPELLANT RESPONDENT ASSESSEE BY : SHRI VEERABASANA GOUDA, CA R EVENUE BY : SHRI K.R. NARAYANA, JCIT (DR) DATE OF HEARING : 21 .0 3 .2019 DATE OF PRONOUNCEMENT : 29 .0 3 .2019 O R D E R PER SHRI A.K. GARODIA, ACCOUNTANT MEMBER THIS APPEAL IS FILED BY THE REVENUE AND THE SAME IS DIRECTED AGAINST THE ORDER OF LD. CIT (A)-1, BANGALORE DATED 27.10.2017 FOR ASSESSMENT YEAR 2013-14. 2. THE GROUNDS RAISED BY THE REVENUE ARE AS UNDER. 1. THE ORDER OF THE LEARNED CIT (APPEALS), IN SO FAR AS IT IS PREJUDICIAL TO THE INTEREST OF REVENUE, IS OPPOSED TO LAW AND THE FACTS AND CIRCUMSTANCES OF THE CASE. 2. THE LD. CIT (A) ERRED IN ALLOWING THE ASSESSEE'S APPEAL ON THE ISSUE OF DISALLOWANCE MADE U/S 14A R. W. RULE 8D AS THE SAID MATTER HAS NOT REACHED FINALITY DUE TO PENDENCY OF REVENUE'S APPEAL BEFORE THE HON'BLE HIGH COURT OF KARNATAKA AGAINST THE DECISION OF JURISDICTIONAL ITAT IN THE CASE OF M/S AMBUTHIRTHA POWER PVT. LTD IN ITA NO.243/2016, DATED: 07.07.2017 AND AN SLP BEFORE THE HON'BLE APEX COURT AGAINST THE DECISION OF HON'BLE HIGH COURT OF DELHI IN THE CASE OF M/S CHEMVEST LTD (378 ITR 33 (DEL)). 3. FOR THESE AND SUCH OTHER GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING, IT IS HUMBLY PRAYED THAT THE ORDER OF THE LD. CIT (A) BE REVERSED AND THAT OF THE ASSESSING OFFICER BE RESTORED. 4. THE APPELLANT CRAVES LEAVE TO ADD, TO ALTER, TO AMEND OR DELETE ANY OF THE GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING OF APPEAL. ITA NO.269/BANG/2018 PAGE 2 OF 2 3. IN COURSE OF HEARING, THE LD. DR OF REVENUE SUBMITTED COPY OF A LETTER DATED 01.10.2018 WRITTEN BY DCIT, H.QRS, IN THE OFFICE OF PR. CIT-1, BANGALORE AND IT IS STATED IN THIS LETTER THAT THE PRESENT APPEAL IS BEING WITHDRAWN BECAUSE OF LOW TAX EFFECT IN VIEW OF CBDT CIRCULAR NO. 3/2018 DATED 11.07.2018. IN THE ENCLOSURE TO THIS LETTER, THE AMOUNT OF TAX EFFECT IN THE PRESENT CASE IS MENTIONED AS RS. 12,60,942/-. IN VIEW OF THIS, THE APPEAL OF THE REVENUE IS DISMISSED AS WITHDRAWN. 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE. SD/- SD/- (LALIET KUMAR) (ARUN KUMAR GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER BANGALORE, DATED, THE 29 TH MARCH, 2019. /MS/ COPY TO: 1. APPELLANT 4. CIT(A) 2. RESPONDENT 5. DR, ITAT, BANGALORE 3. CIT 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, BANGALORE.