Medha Servo Drives Private Limited , Hyderabad V. Dy. Commissioner of Income Tax , Central Circle-1(4), Hyderabad

ITA 440/Hyd/2020

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 3146 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 2 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-10-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 23-09-2021
• Assessment Year: 2014-2015
• Appeal Filed On: 10-08-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: Y V S T SAI
• Assessee Lawyers: V SIVA KUMAR
• Keywords: Earning of tax free income; Rule 8D
• Section: 143(3); 14A; 115JB; 22

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 ITA NO. A.Y. APPELLANT RESPONDENT 438/HYD/2020 2012-13 MEDHA SERVO DRIVES PVT. LTD., HYDERABAD [PAN: AABCM3917A] DCIT, CENTRAL CIRCLE-1(4), HYDERABAD 439/HYD/2020 2014-15 440/HYD/2020 2014-15 FOR ASSESSEE : SHRI V.SIVA KUMAR, AR FOR REVENUE : SHRI Y.V.S.T.SAI, CIT-DR DATE OF HEARING : 23-09-2021 DATE OF PRONOUNCEMENT : 22-10-2021 O R D E R PER S.S.GODARA, J.M. : THESE ASSESSEES THREE APPEALS ITA NOS.438, 439 & 440/HYD/2020 ARISE AGAINST THE CIT(A)-11, HYDERABAD S SEPARATE ORDERS; DATED 25-02-2020 PASSED IN CASE NOS. 10074, 10019 & 10076 / 2019-20 / CIT(A)-11 / HYD / 2019-20 , INVOLVING PROCEEDINGS U/S.143(3) R.W.S.153A IN AY.2 012-13 AND U/S.143(3) R.W.S.263 AND U/S.143(3) R.W.S.153A OF THE INCOME TAX ACT, 1961 [IN SHORT, THE ACT] IN THE LATTER TWIN CASES PERTAINING TO AY.2014-15; RESPECTIVELY. HEARD BOTH THE PARTIES. CASE FILES PERUSED. ITA NOS. 438, 439 & 440/HYD/2020 :- 2 -: 2. WE NOTICE AT THE OUTSET WITH THE ABLE ASSISTANCE OF BOT H THE PARTIES THAT THE ASSESSEES IDENTICAL SOLE SUBSTANTIV E GRIEVANCE HEREIN SEEKS TO REVERSE BOTH THE LOWER AUTHO RITIES ACTION MAKING SECTION 14A R.W.RULE 8D DISALLOWANCE OF RS.6,82,685/- IN AY.2012-13 AND RS.9,61,911/- EACH IN LATTER TWIN APPEALS FOR AY.2014-15; RESPECTIVELY. 3. SUFFICE TO SAY, IT TRANSPIRES AT THE OUTSET THAT THE IN STANT IDENTICAL ISSUE IS NO MORE RES INTEGRA IN ALL THESE CASES FOR THE PRECISE REASON THAT THE ASSESSING OFFICERS REGULAR AS SESSMENT IN AY.2012-13 FRAMED ON 31-03-2015 HAD ALREADY MADE THE VERY DISALLOWANCE WHICH IS AN INSTANCE OF DOUBLE ADD ITION THEREFORE. WE FURTHER OBSERVE THAT THE CIT(A)S ORDER I N AY.2012-13S APPEAL ITA NO.438/HYD/2020 HAS NOT ADJUDICATED THE INSTANT ISSUE ON MERITS. WE THEREFORE H OLD THAT THE IMPUGNED ADDITION MADE IN SECTION 143(3) R.W.S.153 A ASSESSMENT IS NOT LIABLE TO BE SUSTAINED SINCE NOT BAS ED ON ANY INCRIMINATING MATERIAL AND THE SAME HAD ALREADY B EEN MADE IN SECTION 143(3) ASSESSMENT. WE THEREFORE ACCEPT THE ASSESSEES GRIEVANCE HEREIN. ITS FORMER APPEAL ITA NO.438/HYD/2020 SUCCEEDS THEREFORE. 4. THE OUTCOME IS NO DIFFERENT IN ASSESSEES LATTER TWI N APPEAL ITA NOS.439 & 440/HYD/2020 PERTAINING TO AY.20 14- 15 AS WELL SINCE THIS TRIBUNALS CO-ORDINATE BENCH DE CISION IN ITS C.O.NO.23/HYD/2018 FILED IN REVENUES APPEAL NO.655/2018 INVOLVING SECTION 143(3) ASSESSMENT CHALL ENGING THE VERY DISALLOWANCE STOOD ACCEPTED ON THE GROUND THAT I T HAD NOT DERIVED ANY EXEMPT INCOME. WE THEREFORE ADOPT TH E ITA NOS. 438, 439 & 440/HYD/2020 :- 3 -: VERY PRECISE REASON HEREIN AS WELL TO DELETE THE IMPU GNED DISALLOWANCE IN LIGHT OF CASE 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) THE IMPUGNED DISALLOWANCE OF RS.9,61,911/- EACH IN BOTH THESE CONSEQUENTIAL ROUND APPEALS STANDS DELETED THEREF ORE. THESE MAIN APPEALS ITA NOS.439 & 440/HYD/2020 ARE ACCEPTED. THE VERY OUTCOME OF TO FOLLOW REGARDING APPLICABILITY OF SECTION 115JB MAT PROVISION(S) QUA THE IMPUGNED DISALLOWANCE AS WELL. 5. THESE ASSESSEES THREE APPEALS ARE ALLOWED IN ABO VE TERMS. A COPY OF THIS COMMON ORDER BE PLACED IN THE R ESPECTIVE CASE FILES. ORDER PRONOUNCED IN THE OPEN COURT ON 22 ND OCTOBER, 2021 SD/- SD/- (LAXMI PRASAD SAHU) (S.S.G ODARA) ACCOUNTANT MEMBER JUDICIAL MEM BER HYDERABAD, DATED: 22-10-2021 TNMM ITA NOS. 438, 439 & 440/HYD/2020 :- 4 -: COPY TO : 1.MEDHA SERVO DRIVES PVT. LTD., P-4/5B, IDA NACHARA M, HYDERABAD. 2.THE DCIT, CENTRAL CIRCLE-1(4), HYDERABAD. 3.THE CIT(APPEALS)-11, HYDERABAD. 4.THE PR.CIT-CENTRAL, HYDERABAD. 5.D.R. ITAT, HYDERABAD. 6.GUARD FILE.