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

ITA 459/Hyd/2020

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 2160 (ITAT-HYDERABAD)
• Duration Of Justice: 10 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-06-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB-B
• Assessment Year: 2016-2017
• Appeal Filed On: 27-08-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Earning of tax free income; Rule 8D
• Section: 14A

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 I.T.A. NO. 459/HYD/2020 ASSESSMENT YEAR: 2016-17 DCIT, CENTRAL CIRCLE-1(4), HYDERABAD VS M/S.MEDHA SERVO DRIVES PVT. LTD. HYDERABAD [PAN: AABCM3917A] (APPELLANT) (RESPONDENT) FOR REVENUE : SHRI RAJIV RANKA, CIT-DR FOR ASSESSEE : SHRI V.SIVAKUMAR, AR DATE OF HEARING : 28-06-2021 DATE OF PRONOUNCEMENT : 29-06-2021 O R D E R PER S.S.GODARA, J.M. : THIS REVENUES APPEAL FOR AY.2016-17 ARISES FROM THE CIT(A)-11, HYDERABADS ORDER DATED 25-02-2020 PASSED IN CASE NO.10079/2019-20/CIT(A)-11/HYD/2019-20, IN PROCEEDI NGS U/S.143(3) R.W.S.153A OF THE INCOME TAX ACT, 1961 [IN SHORT, THE ACT]. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. AT THE OUTSET, LEARNED AUTHORISED REPRESENTATIVE SUBMITTED THAT SINCE THERE IS NO DIVIDEND INCOME EARNED IN THE RELEVANT PREVIOUS YEAR THE CIT(A)S ORDER DELETING THE IMPUGNED SECTION 14A R.W. RULE 8D DISALLOWANCE OF RS.12,09,202/- MAY BE UPHELD. IN THIS CONNECTION, HE RELIED ON THE FOLLOWING CASE LAW: ITA NO. 459/HYD/2020 :- 2 -: 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) THEIR LORDSHIPS HOLD THAT SECTION 14A READ WITH RULE 8 D APPLIES ONLY IN RELATION TO AN ASSESSEES EXEMPT INCOM E AND NOT OTHERWISE. IT IS AN ADMITTED FACT THAT THE ASSESSEE HAS NOT DERIVED ANY EXEMPT INCOME IN THE RELEVANT PREVIOUS YE AR. WE THEREFORE SUSTAIN THE ORDER OF CIT(A) UNDER CHALLENGE . 3. THIS REVENUES APPEAL IS DISMISSED IN ABOVE TERMS . ORDER PRONOUNCED IN THE OPEN COURT ON 29 TH JUNE, 2021 SD/- SD/- (LAXMI PRASAD SAHU) (S.S.GO DARA) ACCOUNTANT MEMBER JUDICIAL MEM BER HYDERABAD, DATED: 29-06-2021 TNMM ITA NO. 459/HYD/2020 :- 3 -: COPY TO : 1.DCIT, CENTRAL CIRCLE-1(4), HYDERABAD. 2.M/S.MEDHA SERVO DRIVES PVT. LTD., P4/5B, INDUSTRI AL ESTATE, NACHARAM, HYDERABAD. 3.CIT(APPEALS)-11, HYDERABAD. 4.PR.CIT(CENTRAL)-HYDERABAD. 5.D.R. ITAT, HYDERABAD. 6.GUARD FILE.