Deputy Commissioner of Income Tax Circle-1(1)(1), Bangalore V. M/s Avesthagen Limited , Bangalore

ITA 2962/BANG/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 6270 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 3 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-02-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 31-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MUZAFFAR HUSSAIN
• Keywords: Earning of tax free income; Rule 8D

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SHRI. A. K. GARODIA, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER ITA 2962/BANG/2018 ASSESSMENT YEAR : 2011 12 DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 1(1) (1), BANGALORE. VS. M/S. AVESTHAGEN LTD., DISCOVERER, 9 TH FLOOR, INTERNATIONAL TECH PARK, WHITEFIELD ROAD, BANGALORE 560 066. PAN NO : AABCA7217K APPELLANT RESPONDENT APPELLANT BY : MR. MUZAFFAR HUSSAIN, CIT - DR RESPONDENT BY : SRI. GURURAJAN, FINANCE MANAGER OF A CO., DATE OF HEARING : 04 - 02 - 2020 DATE OF PRONOUNCEMENT : 07 - 02 - 2020 ORDER PER BEENA PILLAI, JUDICIAL MEMBER PRESENT APPEAL HAS BEEN FILED BY REVENUE AGAINST ORDER DATED 12/07/18 PASSED BY LD. CIT (A) 1, BANGALORE FOR ASSESSMENT YEAR 2011 12. 2. AT THE OUTSET WE NOTICE THAT THE ONLY ISSUE RAISED BY REVENUE IS IN REGARDS TO DISALLOWANCE MADE UNDER SECTION 14 A READ WITH RULE 8D WHICH HAS BEEN DELETED BY LD. CIT (A). ON PERUSAL OF RECORDS IT IS OBSERVED THAT ASSESSEE HAS MADE TOTAL INVESTMENT OF RS. 44,56,31,689/- IN FOREIGN COMPANIES, WHICH ARE PAGE 2 OF 2 ITA 2962/BANG/2018 A. Y : 2011 12 ALREADY SUBJECTED TO TAX, AND THAT, ASSESSEE HAS NOT EARNED ANY EXEMPT INCOME DURING THE YEAR FROM THESE INVESTMENTS. 3. IT IS OBSERVED THAT LD. CIT (A) DELETED ADDITION MADE BY LD.AO BY FOLLOWING DECISION OF HONBLE KARNATAKA HIGH COURT IN CASE OF M/S. AMBUTHIRTHA POWER PVT. LTD. , IN ITA NO. 243/2016 VIDE ORDER DATED 07/07/17 AND DECISION OF THIS TRIBUNAL IN CASE OF M/S. QUALITY ENGINEERING SOFTWARE TECHNOLOGIES PVT. LTD., REPORTED IN 52 TAXMANN.COM 515 . 4. IT IS FURTHER OBSERVED THAT HONBLE SUPREME COURT IN THE CASE OF DCIT VS GE VK PROJECT AND TECHNICAL SERVICES LTD., REPORTED IN (2019) 106 TAXMANN.COM 181 AS UPHELD THIS VIEW. UNDER SUCH CIRCUMSTANCES WE DO NOT FIND ANY INFIRMITY IN THE OBSERVATIONS OF LD. CIT (A) AND THE SAME IS UPHELD. IN THE RESULT APPEAL FILED BY REVENUE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 07 TH FEBRUARY, 2020. SD/- SD/- (A. K. GARODIA) ( BEENA PILLAI) ACCOUNTANT MEMBER JUDICIAL MEMBER BANGALORE, DATED, THE 07 TH FEBRUARY, 2020. /MK/ COPY TO: 1. APPELLANT 4. CIT(A) 2. RESPONDENT 5. DR, ITAT, BANGALORE 3. CIT 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL. BANGALORE.