ACIT Corporate Circle 5(2), CHENNAI V. Photon Infotech (P) Ltd., CHENNAI

ITA 2856/CHNY/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 5316 (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: 2013-2014
• Appeal Filed On: 24-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N MADHAVAN 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.NO.2856/CHNY/2017 / ASSESSMENT YEAR : 2013-14 DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 5(2), CHENNAI-34. VS. M/S.PHOTON INFOTECH (P) LTD., NO.7, 7 TH CROSS STREET, SHASTRI NAGAR,ADYAR, CHENNAI 600 020. [PAN AABCP 9405 E] ( / APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR.N.MADHAVAN, A.C.I.T, D.R !' /RESPONDENT BY : MR.SAROJ KUMAR PARIDA,ADVOCATE # $ %& / DATE OF HEARING : 10 - 0 4 - 201 8 '( %& / DATE OF PRONOUNCEMENT : 10 - 0 4 - 201 8 ! / O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER: THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST A N ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-3, CHENNAI IN INCOME-TAX ITA NO.2856/CHNY/2017 :- 2 -: APPEAL NO.152/16-17/A-3 DATED 30.08.2017 FOR ASSESS MENT YEAR 2013-14. 2. MR.N.MADHAVAN, ACIT REPRESENTED ON BEHALF OF REVENUE AND MR.SAROJ KUMAR PARIDA, ADVOCATE REPRESENTED ON BEHALF OF ASSESSEE. 3. IT WAS SUBMITTED BY THE LD.D.R THAT THE ONLY ISSUE IN THIS APPEAL OF REVENUE WAS AGAINST THE ACTION OF THE 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 ` 7,35,556/- FOR IMPUGNED ASSESSMENT YEAR. IT WAS ITA NO.2856/CHNY/2017 :- 3 -: THE SUBMISSION THAT THE ISSUE WAS SQUARELY COVERED BY THE DECISION OF THE HONBLE DELHI HIGH COURT IN THE CASE OF JOINT I NVESTMENTS PVT LTD., VS. C.I.T REPORTED IN (2015) 372 ITR 0694 (DELHI), AS ALSO THE DECISION IN THE CASE OF CO-ORDINATE BENCH OF THIS TRIBUNAL I N THE CASE OF M/S.RAYALLA CORPORATION (P) LTD. IN ITA NO.908/MDS. /2015 VIDE ORDER DATED 16.10.2015. IT WAS THE SUBMISSION THAT THE O RDER 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 RAISED IN THIS APPEAL 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 TRIBUNA L 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 NO.2856/CHNY/2017 :- 4 -: THE ORDER OF THE CIT(APPEALS) AND THE APPEAL FILED BY THE DEPARTMENT STANDS DISMISSED. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DIS MISSED. 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