ACIT, CORPORATE CIRCLE 3(1), CHENNAI V. M/S. TIDEL PARK LIMITED, TARAMANI , CHENNAI

ITA 357/CHNY/2023

AI Insights

The case revolves around an appeal by the Revenue against the decision of the CIT(A) which had deleted a disallowance made under section 14A of the Income Tax Act by the Assessing Officer (AO). The disallowance of Rs. 153.25 Lacs was initially computed by the AO, but was contested and subsequently deleted by the CIT(A) based on the absence of any exempt income earned by the assessee during the year. The Revenue challenged this decision, citing a lack of consideration of the provisions under section 14A. However, the Tribunal, referencing a similar case decided by the Hon'ble Madras High Court, upheld the CIT(A)'s decision and dismissed the appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134253 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-07-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 02-07-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 16-03-2023
• Other Referred Cases: PCIT Vs. M/s. Era Infrastructure (India) Ltd., CIT Vs. Chettinad Logistics Pvt. Ltd.
• Laws Referred To: Section 14A of the Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

आयकर अपीलीय अिधकरण “बी” ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHENNAI माननीय ी महावीर िसंह, उपा ! एवं माननीय ी मनोज कुमार अ&वाल ,लेखा सद) के सम!। BEFORE HON’BLE SHRI MAHAVIR SINGH, VP AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ ITA No.357/Chny/2023 (िनधा*रण वष* / As sessment Year: 2018-19) ACIT Corporate Circle-3(1), Chennai. बनाम / V s . M/s. Tidel Park Limited 4, Rajiv Gandhi Salai, Taramani, Chennai-600 113. थायीलेखासं./जीआइआरसं./PAN/GIR No. A AB C T - 06 66- R (अपीलाथ /Appellant) : ( थ / Respondent) अपीलाथ कीओरसे/ Appellant by : Shri D.Hema Bhupal (JCIT)- Ld. DR थ कीओरसे/Respondent by : Shri R.Vijayaraghavan(Advocate)- Ld.AR सुनवाईकीतारीख/Date of Hearing : 03-07-2023 घोषणाकीतारीख /Date of Pronouncement : 03-07-2023 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. The sole grievance of the Revenue in the captioned appeal is deletion of disallowance u/s.14A. Upon perusal of para 7.1 of the impugned order, it could be seen that the Ld. AO has computed disallowance u/s.14A for Rs.153.25 Lacs. However, the assessee has not earned any exempt income during the year. The Ld. CIT(A), relying on the decision of the Hon'ble Delhi High Court in the case of PCIT Vs. M/s. Era Infrastructure (India) Ltd., has deleted impugned disallowance. Aggrieved, the revenue is in further appeal before us. 2 ITA No.357/Chny/2023 2. We find that this issue is squarely covered in assessee’s favour by the decision of the Hon’ble Madras High Court in the case of CIT Vs. Chettinad Logistics Pvt. Ltd. in TCA No. 24 of 2017 dated 13-03- 2017 wherein similar ratio has been laid down. Therefore, no interference is called for in the impugned order. 3. The appeal stand dismissed. Order pronounced on 03 rd July, 2023 Sd/- Sd/- (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) उपा23 / VICE PRESIDENT लेखा सद5 / ACCOUNTANT MEMBER चे7ई Chennai; िदनांक Dated : 03-07-2023 DS आदेश की Aितिलिप अ &ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. यथ /Respondent 3. आयकर आय ु त/CIT 4. वभागीय त न ध/DR 5. गाड फाईल/GF