ACIT Corporate Circle 5(2), CHENNAI V. Pon Pure chem. Pt. Ltd., CHENNAI

ITA 2855/CHNY/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 5308 (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: G BASKAR; A SUSHMA HARINI
• 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.2854/CHNY/2017 & C.O NO.15/CHNY/2018 ASSESSMENT YEAR : 2013-14 AND I.T.A.NOS.2855/CHNY/2017 & C.O NO.16/CHNY/2018 ASSESSMENT YEAR : 2014-15 DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 5(2), CHENNAI-34. VS. M/S.PON PURE CHEM PRIVATE LTD., NO.32, H BLOCK, MAIN ROAD, CHENNAI 600 040. [PAN AACCP 3026 E] ( / APPELLANT) ( /RESPONDENT/ CROSS OBJECTOR) / APPELLANT BY : MR.N.MADHAVAN, A.C.I.T, D.R /RESPONDENT BY : MR.G.BASKAR, ADVOCATE, & MS.A.SUSHMA HARINI, ADVOCATE ! / DATE OF HEARING : 10 - 0 4 - 201 8 '#$% ! / DATE OF PRONOUNCEMENT : 10 - 0 4 - 201 8 ! / O R D E R PER BENCH THESE ARE APPEALS FILES BY THE REVENUE AGAINST T HE COMMON ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-3 , CHENNAI IN ITA NOS.2854 & 2855/CHNY/2017 :- 2 -: INCOME-TAX APPEAL NOS.131 & 130/16-17/A-3 DATED 30. 08.2017 FOR ASSESSMENT YEARS 2013-14 & 2013-14 AND CORRESPONDIN GLY, THE ASSESSEE FILED CROSS OBJECTIONS IN SUPPORT OF THE ORDER OF LD.CIT(A). 2. MR.N.MADHAVAN, ACIT REPRESENTED ON BEHALF OF REVENUE AND MR.G.BASKAR & MS.A.SUSHMA HARINI, ADVOCATES 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 NIL DIVIDEND INCOME FOR ASSESSMENT YEARS 2013-14 & 2014-15 ON ITA NOS.2854 & 2855/CHNY/2017 :- 3 -: ACCOUNT OF INVESTMENT IN SHARES. IT WAS THE SUBMIS SION THAT THE ISSUE WAS SQUARELY COVERED BY THE DECISION OF THE HONBLE DELHI HIGH COURT 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 C ASE OF CO-ORDINATE BENCH OF THIS TRIBUNAL IN THE CASE OF M/S.RAYALLA C ORPORATION (P) LTD. IN ITA NO.908/MDS./2015 VIDE ORDER DATED 16.10.2015. IT WAS 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 THE ORDER OF THE CIT(APPEALS) AND BOTH THE APPEALS FILED BY THE DEPARTMENT STAND DISMISSED. ITA NOS.2854 & 2855/CHNY/2017 :- 4 -: 6. AT THE TIME OF HEARING, LD.A.R SUBMITTED THAT S HE DID NOT WISH TO PRESS THE OBJECTIONS RAISED IN BOTH THE CRO SS-OBJECTIONS BY THE ASSESSEE, CONSEQUENTLY, BOTH THE CROSS OBJECTIONS F ILED BY THE ASSESSEE ARE DISMISSED AS NOT PRESSED. 7. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE FOR ASSESSMENT YEARS 2013-14 & 2014-15 ARE DISMISSED AN D BOTH THE CROSS OBJECTIONS FILED BY THE ASSESSEE STAND DISMIS SED. 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. +01 23 / DR 2. / RESPONDENT 4. ( ( - / CIT 6. 145 6 / GF