S.N.Damani Infra Pvt Ltd., CHENNAI V. DCIT Corporate Circle 5(2), CHENNAI

ITA 2945/CHNY/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 3908 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 8 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-08-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Assessment Year: 2014-2015
• Appeal Filed On: 01-12-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: T N SEETHARAMAN
• Assessee Lawyers: M S NETHRAPALJCITD R
• Keywords: Opportunity of being heard; Rule 8D

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH: CHENNAI , , ( BEFORE SHRI GEORGE MATHAN , JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ./ ITA NO.316/CHNY/2018 /ASSESSMENT YEAR: 2014-15 DEPUTY THE COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 6(2), CHENNAI. VS. M/S.SN DAMANI INFRA PVT LTD. NO.6,GROUND FLOOR,RAYALA TOWER 781-785,ANNA SALAI, CHENNAI 600 002. [ PAN: AAOCS 0334 C ] ( * /APPELLANT) ( +,* /RESPONDENT) ./ ITA NOS.2945/CHNY/2017 & 612/CHNY/2019 /ASSESSMENT YEARS: 2014-15 & 2015-16 M/S.SN DAMANI INFRA PVT LTD. NO.6,GROUND FLOOR,RAYALA TOWER 781-785,ANNA SALAI, CHENNAI 600 002 VS. DEPUTY THE COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 6(2), CHENNAI. [ PAN: AAOCS 0334 C ] ( * /APPELLANT) ( +,* /RESPONDENT) * - / REVENUE BY : MR.M.S.NETHRAPAL,JCIT,D.R +,* - /RESPONDENT BY : MR.T.N.SEETHARAMAN,ADVOCATE - /DATE OF HEARING : 22.08.2019 - /DATE OF PRONOUNCEMENT : 22.08.2019 SN DAMANI INFRA P LTD :- 2 -: / O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER : ITA NO.2945/CHNY/2017 IS AN APPEAL FILED BY THE AS SESSEE AND ITA NO.316/CHNY/2018 IS AN APPEAL FILED BY THE REVENUE, AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-15, CHENNA I, IN ITA NO.381/2016-17/C.I.T(A)-15 DATED 28.09.2017 FOR A SSESSMENT YEAR 2014-15. ITA NO.612/CHNY/2019 IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEAL S)-15, CHENNAI, IN ITA NO.220/2017-18/C.I.T(A)-15 DATED 31.12.2018 F OR ASSESSMENT YEAR 2015-16. SINCE, THE ASSESSEE IN ALL THESE APPEALS IS COMMON, THE APPEALS ARE HEARD TOGETHER AND DISPOSED OFF BY THE COMMON ORDER . 2. MR.M.S.NETHRAPAL REPRESENTED ON BEHALF OF THE RE VENUE AND MR.T.N.SEETHARAMAN REPRESENTED ON BEHALF OF THE ASS ESSEE. ITA NO.316/CHNY/2018 (REVENUES APPEAL) 3. THE ONLY ISSUE RAISED IN THE APPEAL OF REVENUE WAS AGAINST THE ACTION OF LD.CIT(A) IN DELETING THE ADDITION MADE B Y ASSESSING OFFICER HOLDING THAT AS THE ASSESSEE DID NOT EARN ANY DIVID END INCOME, NO DISALLOWANCE WAS CALLED FOR U/S.14A R.W.RULE 8D OF INCOME TAX RULES,1962 FOLLOWING THE DECISION OF HONBLE JURISDICTIONAL HI GH COURT IN THE CASE OF SN DAMANI INFRA P LTD :- 3 -: REDINGTON (INDIA) LTD VS. ACIT IN (2017) 392 ITR 63 3(MAD). THE LD.D.R STRONGLY SUPPORTED THE ORDER OF ASSESSING OFFICER. 4. IN REPLY, THE LD.AR SUBMITTED THAT NOW THE ISSU E WAS SQUARELY COVERED BY THE DECISION OF HONBLE JURISDICTIONAL H IGH COURT IN THE CASE OF M/S.CHETTINAD LOGISTICS P. LTD., IN [2017] 80 TAXMANN.COM 221(MAD). 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. AS IT IS NOTICED THAT LD.CIT(A) HAS FOLL OWED THE JUDICIAL DISCIPLINE BY FOLLOWING THE PRINCIPLES LAID DOWN BY THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF REDINGTON (INDIA) LTD., REFERRED TO SUP RA AND AS THE ASSESSEE HAS NOT EARNED ANY DIVIDEND INCOME, NO DISALLOWANCE U/S.14A R.W.RULE 8D IS CALLED FOR AND THE ORDER OF THE LD. CIT(A) ON TH IS ISSUE STANDS UPHELD. ITA NOS.2945/CJNY/17 & 612/CHNY/19 (ASSESSEES APPEA LS) 6. IT WAS SUBMITTED BY THE LD.AR THAT THE ISSUE WA S AS TO WHETHER THE RENT RECEIVED BY THE ASSESSEE FROM LETTING OUT OF T HE PROPERTIES / WARE HOUSES OWNED BY IT, WAS LIABLE TO BE TREATED AS INC OME UNDER THE HEAD INCOME FROM HOUSE PROPERTY OR UNDER THE HEAD BUS INESS INCOME. IT WAS SUBMITTED THAT LD.CIT(A) HAD IN THE COURSE OF H EARING ON 26.12.2018 FOR ASSESSMENT YEAR 2015-16, CALLED FOR CERTAIN DET AILS BEING THE COPY OF MEMORANDUM & ARTICLES OF ASSOCIATION OF ASSESSEE CO MPANY, LEASE SN DAMANI INFRA P LTD :- 4 -: AGREEMENT ETC. AND THE ASSESSEE HAD VIDE LETTER DA TED 31.12.2018 PROVIDED THE COPY OF THE SAME TO THE LD.CIT(A). IT WAS A SUBMISSION THAT LD.CIT(A) HAD PASSED THE ORDER FOR ASSESSMENT YEAR 2015-16 BY HOLDING ASSESSEE HAS NOT PROVIDED THE DETAILS. BEFORE US, L D.AR SUBMITTED A COPY LETTER DATED 31.12.2018 WHEREIN THE ACKNOWLEDGEMENT SEAL OF THE LD.CIT(A)S OFFICE IS AVAILABLE. IT WAS A PRAYER TH AT HE HAD NO OBJECTION, IF THE ISSUES RAISED IN THESE APPEALS BEING IDENTICAL FOR ASSESSMENT YEARS 2014-15 & 2015-16 WERE RESTORED TO THE FILE OF LD.C IT(A) FOR RE-ADJUDICATION. 7. IN REPLY, THE LD.DR STRONGLY SUPPORTED THE ORDE RS OF THE LD.CIT(A) AND THE ASSESSING OFFICER. 8. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. AS IT IS NOTICED THAT THE ASSE SSEE HAS FILED THE DETAILS CALLED FOR BY THE LD.CIT(A) ON 31.12.2018, AND THE LD.CIT(A) HAS DECIDED THE APPEAL ON 31.12.2018 FOR ASSESSMENT YEAR 2015-1 6 WITHOUT CONSIDERING THE EVIDENCES SUBMITTED BY THE ASSESSEE , IN THE INTEREST OF JUSTICE, THE ISSUES RAISED IN BOTH THE APPEALS OF T HE ASSESSEE ARE RESTORED TO THE FILE OF LD.CIT(A) FOR RE-ADJUDICATION AFTER GRANTING ADEQUATE OPPORTUNITY OF BEING HEARD. SN DAMANI INFRA P LTD :- 5 -: 9. IN THE RESULT, THE APPEAL OF REVENUE IS DISMISS ED AND BOTH THE APPEALS OF THE ASSESSEE ARE PARTLY ALLOWED FOR STAT ISTICAL PURPOSES. ORDER PRONOUNCED ON THE 22 ND AUGUST, 2019 IN CHENNAI. SD/- SD/- ( ) ( INTURI RAMA RAO ) /ACCOUNTANT MEMBER ( ) (GEORGE MATHAN) /JUDICIAL MEMBER /CHENNAI, 4 /DATED: 22 ND AUGUST, 2019. K S SUNDARAM - +56 76 /COPY TO: 1. * /APPELLANT 4. 8 /CIT 2. +,* /RESPONDENT 5. 6 + /DR 3. 8 ( ) /CIT(A) 6. /GF