Sri Krishna Jewellery Mart , Hyderabad V. Dy. Commissioner of Income Tax , Central Circle-2(3), Hyderabad

ITA 346/Hyd/2019

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 0744 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 11 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Assessment Year: 2012-2013
• Appeal Filed On: 14-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: M V ANIL KUMAR
• Keywords: Earning of tax free income; Rule 8D
• Section: 14A; 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER I.T.A. NOS. 345 & 346/HYD/2019 ASSESSMENT YEAR: 2012-13 SRI KRISHNA JEWELLERY MART, HYDERABAD [PAN: AAJFS6312C] VS THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2(3), HYDERABAD THE ASST. COMMISSIONER OF INCOME TAX, CIRCLE-7(1), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI M.V.ANIL KUMAR, AR FOR REVENUE : SHRI ROHIT MUJUMDAR, DR DATE OF HEARING : 08-02-2021 DATE OF PRONOUNCEMENT : 19-02-2021 O R D E R PER BENCH : THESE TWO ASSESSEES APPEALS FOR AY.2012-13 ARISE F ROM THE CIT(A)-3, HYDERABADS ORDERS DATED 11-01-2019 & 1 5-01- 2019 PASSED IN APPEAL NOS.0204 & 0022/DCIT-7(1)/CIT (A)- 3/2016-17, IN PROCEEDINGS U/S.143(3) & 154 OF THE IN COME TAX ACT, 1961 [IN SHORT, THE ACT]; RESPECTIVELY. HEARD BOTH THE PARTIES. CASE FILES PERUSED. ITA NOS. 345 & 346/HYD/2019 :- 2 -: 2. THE ASSESSEE HAS RAISED THE FOLLOWING SIMILAR SUB STANTIVE GROUNDS IN THE INSTANT APPEALS INVOLVING VARYING SUM (S): 1.THE LD.CIT(A) ERRED IN LAW AND FACTS OF THE CASE IN NOT CONDONING THE DELAY IN FILING THE APPEAL AND OUGHT TO HAVE AD MITTED THE APPEAL. 2.THE LD.CIT(A) OUGHT TO HAVE ADMITTED THE APPEAL O N MERITS BY CONDONING THE DELAY. 3.THE LD.CIT(A) OUGHT TO HAVE CONSIDERED THE FACT T HERE IS NO EXEMPT INCOME EARNED BY YOUR APPELLANT AND HENCE, THERE CA NNOT BE ANY DISALLOWANCE U/S.14A OF THE INCOME TAX ACT, 1961. 4.YOUR APPELLANT SUBMITS THAT SINCE THERE IS NO EXE MPT INCOME EARNED BY YOUR APPELLANT, NO DISALLOWANCE U/S.14A IS WARRA NTED. 5.YOUR APPELLANT SUBMITS THAT IN VIEW OF THE SETTLE D LAW THAT THERE CANNOT BE ANY DISALLOWANCE U/S.14A IN THE ABSENCE O F EXEMPT INCOME, PRAYS THAT THE ADDITION MAY BE DELETED. 6.FOR THESE AND SUCH OTHER GROUNDS THAT MAY BE URGE D AT THE TIME OF HEARING YOUR APPELLANT PRAYS THAT THE DISALLOWANCE U/S.14A MAY BE DELETED. 3. AT THE OUTSET, LEARNED AUTHORISED REPRESENTATIVE SUBMITTED THAT THERE IS NO DIVIDEND INCOME DERIVED IN TH E RELEVANT PREVIOUS YEARS. HE RELIED ON THE FOLLOWING C ASE LAW: I. CIT VS. CHETTINAD LOGISTICS PVT. LTD., [80 TAXMANN.COM 221] (MADRAS); II. CIT VS. CORRTECH ENERGY PVT. LTD., [223 TAXMAN 130] (GUJ); III. CHEMINVEST LTD., VS. CIT (2015) [378 ITR 33] (DEL) 4. THIS CLINCHING FACT HAS GONE UNREBUTTED FROM THE DEPARTMENTAL SIDE. ITA NOS. 345 & 346/HYD/2019 :- 3 -: 5. THEIR LORDSHIPS HOLD IN ABOVE DECISIONS THAT SECTIO N 14A READ WITH RULE 8D APPLIES ONLY IN RELATION TO AN ASSES SEES EXEMPT INCOME AND NOT OTHERWISE. WE THEREFORE DELETE TH E IMPUGNED SECTION 14A R.W. RULE 8D DISALLOWANCES. 6. THESE TWO ASSESSEES APPEAL ARE ALLOWED IN ABOVE TERMS. ORDER PRONOUNCED IN THE OPEN COURT ON 19 TH FEBRUARY, 2021 SD/- SD/- (LAXMI PRASAD SAHU) (S.S.GOD ARA) ACCOUNTANT MEMBER JUDICIAL MEMB ER HYDERABAD, DATED: 19-02-2021 TNMM ITA NOS. 345 & 346/HYD/2019 :- 4 -: COPY TO : 1.SRI KRISHNA JEWELLERY MART, C/O.M.ANANDAM & CO., CHARTERED ACCOUNTANTS, FLAT NO.7A, SURYA TOWERS, S.P.ROAD, SECUNDERABAD. 2.THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CI RCLE- 2(3), HYDERABAD. 3.THE ASST.COMMISSIONER OF INCOME TAX, CIRCLE-7(1), HYDERABAD. 4.CIT(APPEALS)-3, HYDERABAD. 5.PR.CIT-3, HYDERABAD. 6.D.R. ITAT, HYDERABAD. 7.GUARD FILE.