ACIT 12(2)(2), Mumbai V. M/S HATHWAY CABLE & DARACOM LTD., Mumbai

ITA 3980/MUM/2019

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 3597 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 8 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-02-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: H
• Assessment Year: 2014-2015
• Appeal Filed On: 04-06-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GURBINDER SINGH
• Keywords: Earning of tax free income; Rule 8D
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (V I RTUAL COURT) , H BENCH MUMBAI BEFORE SHRI M.BALAGANESH, AM & SHRI AMARJIT SINGH , JM ITA NO. 3980 /MUM/ 20 19 ( ASSESSMENT YEAR : 2014 - 15 ) ACIT - 12(2)(2) ROOM NO.262/145, 1 ST FLOOR AAYAKAR BHAWAN CHURCHGATE, MUMBAI - 400020 VS. M/S. HATHWAY CABLE & DATACOM LTD., RAHEJAS, 4 TH FLOOR CORNER OF MAIN AVENUE & V.P.ROAD, SANTACRUZ (W) MUMBAI 400 054 PAN/GIR NO. AAACC68148 (APPELLANT ) .. (RESPONDENT ) REVENUE BY SHRI GURBINDER SINGH ASSESSEE BY SH RI NIMESH VORA DATE OF HEARING 02 / 02 /202 1 DATE OF PRONOUNCEMENT 17/02 /202 1 / O R D E R PER M. BALAGANESH (A.M) : THIS APPEAL IN ITA NO. 3980/MUM/2019 FOR A.Y. 2014 - 15 ARISES OUT OF THE ORDER BY THE LD. COMMISSIONER OF INCOME TA X (APPEALS) - 20, MUMBAI IN APPEAL NO. CIT(A) - 20/IT - 10575/2016 - 17 DATED 29/03/2019 (LD. CIT(A) IN SHORT) AGAINST THE ORDER OF ASSESSMENT PASSED U/S.143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS ACT) DATED 28/11/2016 BY THE LD. ASST. COMMISSI ONER OF INCOME TAX - 12(2)(2), MUMBAI (HEREINAFTER REFERRED TO AS LD. AO). ITA NO . 3980/MUM/ 2019 M/S. HATHWAY CABLE & DA T ACOM LTD., 2 2. THE ONLY ISSUE TO BE DECIDED IN THIS APPEAL OF THE REVENUE IS AS TO WHETHER ANY DISALLOWANCE U/S.14A OF THE ACT R.W.RULE 8D OF THE RULES COULD BE MADE WHEN ASSESSEE HAS NOT RECEIV ED ANY EXEMPT INCOME DURING THE YEAR. 3. WE HAVE HEARD RIVAL SUBMISSIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. WE FIND THAT THERE IS NO DISPUTE THAT ASSESSEE HAD NOT RECEIVED ANY EXEMPT INCOME DURING THE YEAR UNDER CONSIDERATION. IN VIEW OF THE H UGE INVESTMENTS HELD BY THE ASSESSEE, THE LD. AO DIRECTLY PROCEEDED TO APPLY THIRD LIMB OF RULE 8D(2) OF THE RULES AND MADE DISALLOWANCE OF INDIRECT EXPENSES U/S.14A TO THE TUNE OF RS. 1,69,35,716/ - BY CONSIDERING 0 .5% OF AVERAGE VALUE OF INVESTMENTS. WE F IND THE ISSUE IS NOW VERY WELL SETTLED IN THE DECISION OF THE HONBLE SUPREME COURT IN THE CASE OF MAXO P P INVESTMENTS REPORTED IN 402 ITR 640 AND OTHER DECISIONS WHEREIN IT HAS BEEN CATEGORICALLY HELD THAT WHEN THERE IS NO EXEMPT INCOME DERIVED BY THE ASSE SSEE DURING THE YEAR UNDER CONSIDERATION, THE APPLICABILITY OF SECTION 14A OF THE ACT DOES NOT COME INTO OPERATION. RESPECTFULLY FOLLOWING THE SAME, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LD. CIT(A) GRANTING RELIEF TO THE ASSESSEE. ACCORDINGLY, T HE GROUNDS RAISED BY THE REVENUE ARE DISMISSED. 4. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED ON 17 / 02 /202 1 BY WAY OF PROPER MENTIONING IN THE NOTICE BOARD. SD/ - ( AMARJIT SINGH ) SD/ - (M.BALAGAN ESH) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED 17 / 02 / 2021 ITA NO . 3980/MUM/ 2019 M/S. HATHWAY CABLE & DA T ACOM LTD., 3 KARUNA , SR.PS COPY OF THE ORDER FORWARDED TO : BY ORDER, ( ASSTT. REGISTRAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD F ILE. //TRUE COPY//