A.K. CAPITAL SERVICES LTD, MUMBAI V. ADDL CIT RG 1, MUMBAI

ITA 488/MUM/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 8207 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 2 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-03-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2013-2014
• Appeal Filed On: 23-01-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SATISH CHANDRA RAJORE
• Keywords: Earning of tax free income; Rule 8D
• Section: 14A

Judgement Text

IN THE INC OME TAX APPELLATE TRIBUNAL A BENCH, MUMBAI BEFORE HONBLE SH. SANDEEP GOSAIN , J M & HONBLE SH. G. MANJUNATHA , A M ./ I.T.A. NO . 488 /MUM/201 7 ( / ASSESSMENT YEAR: 2013 - 14 ) A. K. CAPITAL SERVICES LTD. 403, 4 TH FLOOR, EAST WING, TULSIANI CHAMBERS, FREE PRESS JOURNAL MARG, 212, NARIMAN POINT, MUMBAI - 400 021 / VS. AC IT CIRCLE 3(1)(1 ), MUMBAI PIN - ./ ./ PAN NO. AAACA1069L ( / APPELLANT ) : ( / RESPONDENT ) / APPELLANT BY : SHRI ANUJ KISNADWALA , A R / RESPONDENTBY : SHRI SATISHCHANDRA RAJORE, DR / DATE OF HEARING : 24 .01 .201 9 / DATE OF PRONOUNCEMENT : 29.03.2019 / O R D E R PER SANDEEP GOSAIN, J UDICIAL MEMBER : THE P RESENT APPE AL FILED BY THE ASSESSEE IS AGAINST THE ORDER OF LD. CIT (APPEAL) I, NEW DELHI DATED 08.11.16 F OR AY 20 13 - 14. 2 I.T.A. NO. 488 /MUM/2017 A. K. CAPITAL SERVICES LTD 2 . THE SOLITARY GROUND RAISED BY THE ASSESSEE RELATES TO CHALLENGING THE ORDER OF LD. CIT (A) IN CONFIRMING THE DISALLOWANCE MADE BY AO INVOKING THE PROVISIONS OF SECTION 14A R.W.R. 8D OF THE ACT. 3 . AT THE VERY OUTSET, LD. AR APPEARING ON BEHALF OF THE ASSES S EE SUBMITTED BEFORE US THAT THIS GROUND IS COVERED BY THE ORDER OF HONBLE ITAT IN ITA NO. 5320/DEL/2015 FOR AY 2012 - 13 IN ASSESSEES OWN CASE , WHEREIN THE IDENTICAL GROUND RA ISED IN THE PRESENT APPEAL HAS ALREADY BEEN DECIDED ON MERITS. 4 . ON THE OTHER HAND, LD. DR FAIRLY AGREED TO THE CONTENTION OF LD. AR THAT THE ISSUE IS COVERED IN FAVOUR OF ASSESSEE. 5 . WE HAVE HEARD B OTH THE PARTIES AND WE HAVE ALSO PERUSED THE MATERIAL PLACED ON RECORD AS WELL AS THE ORDERS PASSED BY REVENUE AUTHORITIES. WE FIND THAT THE IDENTICAL GROUND HAS ALREADY BEEN DECIDED BY THE COORDINATE BENCH OF HONBLE ITAT IN ITA NO. 5320/DEL/2015 FOR AY 2012 - 13 IN ASSESSEES OWN 3 I.T.A. NO. 488 /MUM/2017 A. K. CAPITAL SERVICES LTD CASE . THE OPERATIVE PORTION OF THE ORDER OF HONBLE ITAT PASSED IN I T A NO. CONTAINED IN PARA NO. 7 , WHICH IS REPRODUCED BELOW: - 7. WE HAVE CAREFULLY CONSIDERED THE RIVAL CONTENTION AND FIND THAT THE DURING THE YEAR THE ASSESSEE HA S RECEIVED THE EXEMPT INCOME OF INR 2 906964/. THE ABOVE AMOUNT HAS BEEN DISALLOWED BY THE ASSESSEE HIMSELF IN THE COMPUTATION OF THE TOTAL INCOME. THE LEARNED COMMISSIONER OF INCOME TAX HAS DELETED THE DISALLOWANCE COMPUTED BY THE LEARNED ASSESSING OFFICE R DISREGARDING THE ABOVE PRINCIPLE. THE LEARNED COMMISSIONER OF INCOME TAX APPEALS HAS FOLLOWING THE DECISION OF THE HONOURABLE JURISDICTIONAL HIGH COURT IN CASE OF JOINT INVESTMENTS PRIVATE LIMITED VS. CIT (ITA NUMBER 117/2015 ) DELETED THE ABOVE ADDITION . EVEN THE HONOURABLE DELHI HIGH COURT IN CASE OF PRINCIPAL COMMISSIONER OF INCOME TAX VS. ILFS ENERGY DEVELOPMENT LTD 84 TAXMANN.COM 186 HAS ALSO REAFFIRMED THE ABOVE VIEW, EVEN AFTER CONSIDERING THE CIRCULAR ISSUED BY THE CBDT DATED 11/05/2014. IN VIEW O F THIS, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX APPEALS HOLDING THAT DISALLOWANCE UNDER SECTION 14 A. READ WITH RULE 8D CANNOT EXCEED THE EXEMPT INCOME. ACCORDINGLY, GROUND NUMBER 1 TO 3 OF THE APPEAL OF THE REVE NUE IS DISMISSED. 4 I.T.A. NO. 488 /MUM/2017 A. K. CAPITAL SERVICES LTD 6. AFTER HAVING GONE THROUGH THE FACTS OF THE PRESENT CASE AS WELL AS CONSIDERING THE ORDERS PASSED BY REVENUE AUTHORITIES AND HONBLE ITAT AS MENTIONED ABOVE IN ASSESSEES OWN CASE , W E FIND THAT THE IDENTICAL ISSUE HAS ALREADY BEEN DECIDED BY THE HONBLE ITAT IN ITA NO. 5320/DEL/2015 FOR AY 2012 - 13 IN ASSESSEES OWN CASE . T HEREFORE , RESPECTFULLY FOLLOWING THE DECISION OF THE COORDINATE BENCH OF HONBLE ITAT AND IN ORDER TO MAINTAIN JUDICIAL CONSISTENCY , WE APPLY THE SA ME FINDINGS IN THE PRESENT CASE WHICH ARE APPLICABLE MUTATIS MUTANDIS IN THE PRESENT CASE. RESULTANTLY, THIS GROUND RAISED BY THE ASSESSEE STANDS A LLOWED. 7 . IN THE NET RESULT, THE APPEAL FILED BY THE ASSESSEE STANDS A LLOWED WITH NO ORDER AS TO COST. ORDER PRONOUNCED IN THE OPEN COURT ON 29 TH MARCH , 2019. SD/ - SD/ - ( G. MANJUNATHA ) (SANDEEP GOSAIN) / A COUNTANT MEMBER / JUDICIAL MEMBER MUMBAI ; DATED : 29 .03 .201 9 SR.PS . DHANANJAY 5 I.T.A. NO. 488 /MUM/2017 A. K. CAPITAL SERVICES LTD / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ( ) / THE CIT(A) 4. / CIT - CONCERNED 5. , , / DR, ITAT, MUMBAI 6. / GUARD F I LE / BY ORDER, . / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI