DCIT 1(3)(2), MUMBAI V. TATA ADVANCED SYSTEMS LTD., MUMBAI

ITA 3606/MUM/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 2809 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-06-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2014-2015
• Appeal Filed On: 25-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Earning of tax free income
• Section: 143(3); 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI E BENCH, MUMBAI BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI SANDEEP GOSAIN, JUDICIAL MEMBER ./ I.T.A. NO. 3606/MUM/2018 ( / ASSESSMENT YEAR : 2014-15) DEPUTY COMMISSIONER OF INCOME TAX 1(3)(2), ROMM NO. 504, 5 TH FLOOR, AAYAKAR BHAVAN, M. K. ROAD, MUMBAI - 400020 / VS. M/S. TATA ADVANCED SYSTEMS LTD. YUSUF BLDG., 2 ND FLOOR, 43, M.G. ROAD, FORT, MUMBAI - 400001 ./ ./ PAN/GIR NO. : AACCT5245K ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI ABI RAMA KARTHIKEYAN, SR.D.R. / RESPONDENT BY : MS. ARATI VISSANJI, A.R. / DATE OF HEARING 13/06/2019 !'# / DATE OF PRONOUNCEMENT 14/06/2019 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANCE OF THE REVENUE AGAINST THE ORDER OF THE COMMISSIONER OF IN COME TAX (APPEALS)-3, MUMBAI, (CIT(A) IN SHORT), DATED 19. 01.2018 ITA NO.3606/MUM/18 [DCIT VS. M/S. TATA ADVANCED SYSTEMS LTD.] A.Y. 2014-15 - 2 - ARISING IN THE ASSESSMENT ORDER DATED 28.12.2016 PA SSED BY THE ASSESSING OFFICER (AO) UNDER S. 143(3) OF THE INCOM E TAX ACT, 1961 (THE ACT) CONCERNING AY 2014-15. 2. THE SOLITARY ISSUE ARISING IN THE INSTANT APPEAL OF THE REVENUE RELATES TO DISALLOWANCE OF EXPENDITURE RELA TABLE TO EXEMPT INCOME IN TERMS OF SECTION 14A OF THE ACT. 3. WHEN THE MATTER WAS CALLED FOR HEARING, THE LE ARNED AR FOR THE ASSESSEE IN REVENUES APPEAL SUBMITTED AT THE O UTSET THAT THE ASSESSEE HAS NOT DECLARED ANY EXEMPT INCOME BY WAY OF DIVIDEND INCOME ETC. AND THEREFORE SECTION 14A OF THE ACT HA S NO APPLICATION IN THE FACTS OF THE CASE. IT WAS FURTH ER POINTED OUT THAT THE ISSUE IS SQUARELY COVERED BY SEVERAL JUDICIAL P RECEDENTS INCLUDING THE DECISION OF THE HONBLE SUPREME COURT IN THE CASE OF PR.CIT VS. OIL INDUSTRY DEVELOPMENT BOARD [2019] 10 3 TAXMANN.COM 326 (SC). 4. IN THE LIGHT OF THE DECISION OF THE HONBLE SUPR EME COURT IN OIL INDUSTRY DEVELOPMENT BOARD (SUPRA) , IT IS WELL SETTLED THAT IN THE ABSENCE OF ANY EXEMPT INCOME, DISALLOWANCE UNDE R S.14A OF THE ACT OF ANY AMOUNT IS NOT PERMISSIBLE IN LAW. SECTION 14A OF ITA NO.3606/MUM/18 [DCIT VS. M/S. TATA ADVANCED SYSTEMS LTD.] A.Y. 2014-15 - 3 - THE ACT IS A NON-STARTER IN THE INSTANT CASE. THUS , WE FIND NO MERIT IN THE GRIEVANCE OF THE REVENUE. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. SD/- SD/- (SANDEEP GOSAIN) (PRADIP KU MAR KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI: DATED 14/06/2019 TRUE COPY S. K. SINHA / COPY OF ORDER FORWARDED TO:- 1. / REVENUE 2. / ASSESSEE 3. )*+ , / CONCERNED CIT 4. ,- / CIT (A) 5. 012 33*+, *+#, ) / DR, ITAT, MUMBAI 6. 278 9 / GUARD FILE. BY ORDER / , / , *+#, ) THIS ORDER PRONOUNCED IN OPEN COURT ON 14/06/2 019