Asst. Commissioner of Income Tax, Circle-16(1), Hyderabad V. Lanco Thermal Power Limited, Hyderabad

ITA 421/Hyd/2018

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 6058 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-06-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 27-02-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M H NAIK
• Assessee Lawyers: P MURALI MOHAN RAO
• Keywords: Earning of tax free income
• Section: 14A

Judgement Text

ITA NO 421 OF 2018 LANCO THERM AL POWER LTD HYDERABAD. PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S.RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO.421/HYD/2018 (ASSESSMENT YEAR: 2014-15) DY. COMMISSIONER OF INCOME TAX, CIRCLE 16(1) HYDERABAD VS M/S. LANCO THERMAL POWER LIMITED, HYDERABAD PAN: AABCV6386N (APPELLANT) (RESPONDENT) FOR REVENUE : SHRI M.H. NAIK, DR FOR ASSESSEE : SHRI P. MURALI MOHAN RAO O R D E R PER SMT. P. MADHAVI DEVI, J.M. THIS IS REVENUES APPEAL FOR THE A.Y 2014-15 AGAINS T THE ORDER OF THE CIT (A)-4, HYDERABAD, DATED 4.1.20 17. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. THE CIT(A) ERRED IN DELETING THE DISALLOWANCE U /S 14A OF RS.5, 79,05,000/-. 2. THE CIT(A) ERRED IN IGNORING CBDTS CIRCULAR NO.5 OF 2014 DATED 11.02.2014. 3. THE CIT(A) ERRED IN IGNORING THE SUPREME COURT DECISION IN THE CASE OF CIT VS. WALFORT SHARE OF ST OCK BROKERS P LTD [326 ITR 1], WHEREIN IT WAS HELD THAT THE MANDATE OF SECTION 14A WAS TO CURB THE PRACTICE OF CLAIMING DEDUCTION OF EXPENSES INCURRED IN RELATION TO EXEMPT INCOME AGAINST TAXABLE INCOME AND AT THE SAM E TIME AVAIL OF THE TAX INCENTIVE BY WAY OF EXEMPT IN COME WITHOUT MAKING ANY APPORTIONMENT OF EXPENSES INCURR ED IN RELATION TO EXEMPT INCOME. DATE OF HEARING: 01.06.2018 DATE OF PRONOUNCEMENT: 0 6 . 0 6 .2018 ITA NO 421 OF 2018 LANCO THERM AL POWER LTD HYDERABAD. PAGE 2 OF 2 2. HAVING REGARD TO THE RIVAL CONTENTIONS AND THE MATERIAL ON RECORD, WE FIND THAT THE ISSUE INVOLVED IN THIS APPEAL IS COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF THE HO N'BLE DELHI HIGH COURT IN THE CASE OF CHEMINVEST LTD VS. CIT REPORTE D IN (2015) 378 ITR 33 (DEL.) WHEREIN IT HAS BEEN HELD THAT SEC TION 14A OF THE ACT WILL NOT APPLY WHERE NO EXEMPT INCOME IS RECEIV ED DURING THE RELEVANT A.Y. WE FIND THAT IN SIMILAR CASES, THE CO ORDINATE BENCH OF THIS TRIBUNAL HAS BEEN FOLLOWING THE ABOVE DECIS ION OF THE HON'BLE DELHI HIGH COURT (SUPRA) TO DELETE THE ADDI TIONS SIMILARLY MADE. WE FIND THAT THE CIT (A) HAS FOLLOWED THE DEC ISION OF THE COORDINATE BENCH OF THIS TRIBUNAL ON THIS ISSUE AND THEREFORE, WE FIND SEE NO REASON TO INTERFERE WITH THE ORDER OF T HE CIT (A). 3. IN THE RESULT, REVENUES APPEAL IS ACCORDINGLY DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 6 TH JUNE, 2018. SD/- SD/- (S.RIFAUR RAHMAN) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 6 TH JUNE 2018. VINODAN/SPS COPY TO: 1 DY. CIT, CIRCLE 16(1) ROOM NO.121, 1 ST FLOOR, BLOCK B, IT TOWER, MASAB TANK, HYDERABAD 2 M/S. LANCO THERMAL POWER LTD, LANCO HOUSE, PLOT N O.4, SOFTWARE UNITS LAYOUT, HITECH CITY, MADHAPUR, HYDERABAD 5000 81 3 CIT (A)-4 HYDERABAD 4 PR. CIT 4, HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER