ACIT, CHENNAI V. M/s. Chettinad Logistics Pvt. Ltd., CHENNAI

ITA 2791/CHNY/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 4153 (ITAT-CHENNAI)
• Duration Of Justice: 8 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-06-2017
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: B
• Next Hearing Date: 13-06-2017
• Assessment Year: 2012-2013
• Appeal Filed On: 27-09-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: A S SRIRAMAN

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH: CHENNAI , ! , ! & BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ ITA NO.2791/MDS/2016 /ASSESSMENT YEAR: 2012-13 THE ASST. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-3 (2), 46, NUNGAMBAKKAM HIGH ROAD, CHENNAI-600 034. VS. M/S.CHETTINAD LOGISTICS PVT. LTD., RANI SEETHAI HALL, V FLOOR, 603, ANNA SALAI, CHENNAI-600 006. [PAN: AABCC 4551 C] ( ( /APPELLANT) ( )*( /RESPONDENT) ( + / APPELLANT BY : MR.SASI KUMAR, JCIT )*( + /RESPONDENT BY : MR.A.S.SRIRAMAN, ADV. + /DATE OF HEARING : 13.06.2017 + /DATE OF PRONOUNCEMENT : 13.06.2017 / O R D E R PER GEORGE MATHAN , JUDICIAL MEMBER : ITA NO.2791/MDS/2016 IS AN APPEAL FILED BY THE REV ENUE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-1 , CHENNAI, IN ITA NO.178/CIT(A)/2015-16 DATED 05.07.2016 FOR THE AY 2 012-13. 2. SHRI SASI KUMAR, JCIT, REPRESENTED ON BEHALF OF THE APPELLANT AND SHRI A.S.SRIRAMAN, ADV., REPRESENTED ON BEHALF OF T HE RESPONDENT. ITA NO.2791/MDS/2016 :- 2 -: 3. IT WAS SUBMITTED BY THE LD.DR THAT THE ONLY ISSU E IN THE REVENUES APPEAL WAS AGAINST THE ACTION OF THE LD.CIT(A) IN D IRECTING THE AO TO RE- WORK THE DISALLOWANCE U/S.14A R/W RULE 8D AFTER EXC LUDING THE INTEREST ATTRIBUTABLE TO STRATEGIC INVESTMENTS. IT WAS FURT HER AGREED BY BOTH THE SIDES THAT THE ISSUE IN THE REVENUES APPEAL WAS SQ UARELY COVERED BY THE DECISION OF THE CO-ORDINATE BENCH OF THIS TRIBUNAL IN THE ASSESSEES OWN CASE FOR THE AYS 2010-11 & 2011-12 IN ITA NO.1388/M DS/2015 AND IN ITA NO.1647/MDS/2015 DATED 07.06.2016 AND IN ITA NO.637 /MDS/2016 WHEREIN THE CO-ORDINATE BENCH OF THIS TRIBUNAL HAS RESTORED THE ISSUE TO THE FILE OF THE AO WITH THE FOLLOWING DIRECTIONS: THE ASSESSEE HAS INVESTED IN GROUP COMPANIES NOT TO EARN EXEMPTED INCOME. CONSIDERING APPARENT FACTS, THE INVESTMENTS PATTERN , JUDICIAL DECISIONS AND FINDINGS OF THE LD. COMMISSIONER OF INCOME TAX (APP EALS) AND NATURE OF EXPENDITURE CLAIMED AS PER AUDITED FINANCIAL STATEM ENTS, WE ARE OF THE OPINION THAT THE MATTER HAS TO RE-EXAMINED AND DIRECT THE A SSESSING OFFICER TO VERIFY THE INVESTMENTS IN GROUP SUBSIDIARIES ON COMMERCIAL EXP EDIENCY AND EXPENDITURE ATTRIBUTABLE TO INVESTMENTS AND APPLY THE PROVISION S OF SEC.14A R.W. RULE 8D, WE REMIT THE ISSUE TO THE FILE OF ASSESSING OFFICER FO R FRESH CONSIDERATION. THIS GROUND OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. AS IT IS NOTICED THAT THE CO-ORDINATE BENCH OF THIS TRIBUNAL HAS RESTORED THE ISSUE TO THE FILE OF THE AO FOR RE-ADJUDICATION, ON IDENTICAL REASONS, THE I SSUE IN THIS APPEAL ARE RESTORED TO THE FILE OF THE AO FOR RE-ADJUDICATION. ITA NO.2791/MDS/2016 :- 3 -: 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES ORDER PRONOUNCED IN THE OPEN COURT ON JUNE 13, 201 7, AT CHENNAI. SD/- SD/- ( ) ( S. JAYARAMAN ) ! /ACCOUNTANT MEMBER ( ) (GEORGE MATHAN) ! /JUDICIAL MEMBER /CHENNAI, 2 /DATED: JUNE 13, 2017. TLN + )34 54 /COPY TO: 1. ( /APPELLANT 4. 6 /CIT 2. )*( /RESPONDENT 5. 4 ) /DR 3. 6 ( ) /CIT(A) 6. /GF