DCIT Corporate Circle 5(1), CHENNAI V. Rajkumar Impex P Ltd., CHENNAI

ITA 2852/CHNY/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 5306 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-04-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 24-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N MADHAVAN A
• Assessee Lawyers: HEMALATHAC A
• Keywords: Earning of tax free income

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : CHENNAI , , BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER & SHRI S.JAYARAMAN , ACCOUNTANT MEMBER ./ I.T.A.NOS.2851 & 2852/CHNY/2017 / ASSESSMENT YEARS : 2013-14 & 2014-15 DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 5(1), CHENNAI-34. VS. M/S.RAJKUMAR IMPEX LTD., NO.93, NEW NO.119, ST.MARYS ROAD, ABHIRAMPURAM, CHENNAI 600 018, [PAN AAACR 3577 J] ( / APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR.N.MADHAVAN, A.C.I.T, D.R ! ' /RESPONDENT BY : MS.HEMALATHA,C.A # $ %& / DATE OF HEARING : 10 - 0 4 - 201 8 '( %& / DATE OF PRONOUNCEMENT : 10 - 0 4 - 201 7 ! / O R D E R PER BENCH THESE ARE APPEALS FILES BY THE REVENUE AGAINST T HE SEPARATE ORDERS OF THE COMMISSIONER OF INCOME-TAX (APPEALS)- 3, CHENNAI IN INCOME-TAX APPEAL NO.231/16-17/A-3 DATED 30.08.2017 FOR ITA NOS.2851 & 2852/CHNY/2017 :- 2 -: ASSESSMENT YEAR 2013-14, AND IN INCOME-TAX APPEAL N O.230/16-17/A- 3 DATED 30.08.2017 FOR ASSESSMENT YEAR 2013-14. 2. MR.N.MADHAVAN, ACIT REPRESENTED ON BEHALF OF REVENUE AND MS.HEMALATHA, C.A REPRESENTED ON BEHALF OF ASSESSEE. 3. IT WAS SUBMITTED BY THE LD.D.R THAT THE ONLY ISSUE IN BOTH THESE REVENUES APPEALS WAS AGAINST THE ACTION OF T HE LD.CIT(A) IN RESTRICTING THE DISALLOWANCE MADE BY THE LD. ASSESS ING OFFICER U/S.14A OF THE INCOME TAX ACT,1961 (IN SHORT THE ACT) REA D WITH RULE-8D OF INCOME TAX RULES, 1962 (IN SHORT RULE) TO THE EXT ENT OF EXEMPT INCOME, FOLLOWING THE DECISION OF CO-ORDINATE BENCH OF THIS TRIBUNAL IN THE CASE OF M/S.RAYALLA CORPORATION (P) LTD. IT WAS THE SUBMISSION THAT THE DEPARTMENT HAS FILED AN APPEAL AGAINST THE SAID DECISION BEFORE THE HONBLE JURISDICTIONAL HIGH COURT AND THE SAME IS PENDING. IT WAS THE SUBMISSION THAT THE ORDER OF LD.CIT(A) WAS LIAB LE TO BE REVERSED AND THAT THE ORDER OF LD. ASSESSING OFFICER TO BE R ESTORED. 4. IN REPLY, LD.A.R SUBMITTED THAT THE ASSESSEE HA D EARNED DIVIDEND INCOME OF ` 8,072/- FOR ASSESSMENT YEAR 2013-14, AND DIVIDEND INCOME EARNED BY THE ASSESSEE FOR ASSESSME NT YEAR 2014-15 ITA NOS.2851 & 2852/CHNY/2017 :- 3 -: WAS ONLY ` 10,796/-. IT WAS THE SUBMISSION THAT THE ISSUE WAS SQUARELY COVERED BY THE DECISION OF THE HONBLE DELHI HIGH C OURT IN THE CASE OF JOINT INVESTMENTS PVT LTD., VS. C.I.T REPORTED IN ( 2015) 372 ITR 0694 (DELHI), AS ALSO THE DECISION IN THE CASE OF CO-ORD INATE BENCH OF THIS TRIBUNAL IN THE CASE OF M/S.RAYALLA CORPORATION (P) LTD. IN ITA NO.908/MDS./2015 VIDE ORDER DATED 16.10.2015. IT W AS THE SUBMISSION THAT THE ORDER OF THE CIT(APPEALS) WAS LIABLE TO BE UPHELD. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PER USED THE MATERIALS AVAILABLE ON RECORD. AS IT IS NOTICED TH AT THE ISSUE IN THESE APPEALS IS SQUARELY COVERED BY THE DECISION OF THE CO-ORDINATE BENCH OF THIS TRIBUNAL IN M/S.RAYALLA CORPORATION (P) LTD . REFERRED SUPRA WHEREIN THE CO-ORDINATE BENCH OF THIS TRIBUNAL ALSO FOLLOWED THE DECISION OF THE HONBLE DELHI HIGH COURT IN THE CAS E OF JOINT INVESTMENTS PVT LTD., VS. C.I.T REFERRED SUPRA AND AS IT IS NOTICED THAT, THE LD.CIT(A) HAS FOLLOWED THE JUDICIAL DISCIPLINE IN FOLLOWING THE DECISION OF CO-ORDINATE BENCH OF THIS TRIBUNAL IN M /S.RAYALLA CORPORATION (P) LTD. REFERRED SUPRA, WE FIND NO REA SON TO INTERFERE WITH ITA NOS.2851 & 2852/CHNY/2017 :- 4 -: THE ORDER OF THE CIT(APPEALS) AND BOTH THE APPEALS FILED BY THE DEPARTMENT STAND DISMISSED. 6. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE FOR ASSESSMENT YEARS 2013-14 & 2014-15 ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AFTER CONCLUSION OF HEARING ON 10 TH APRIL, 2018, AT CHENNAI. SD/ - SD/ - ( ) (S. JAYARAMAN) ' # /ACCOUNTANT MEMBER ( ) (GEORGE MATHAN) $ # / JUDICIAL MEMBER ) $ / CHENNAI * / DATED: 10 TH APRIL, 2017. K S SUNDARAM + !%,- . -% / COPY TO: 1 . / APPELLANT 3. # /% () / CIT(A) 5. -23 !%4 / DR 2. !' / RESPONDENT 4. # /% / CIT 6. 35 6$ / GF