DCIT - 10 (3)(2), MUMBAI V. PARAJAPE PROPERTIES & INVESTMENT PVT. LTD., MUMBAI

ITA 5043/MUM/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 8076 (ITAT-MUMBAI)
• Duration Of Justice: 7 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-04-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 31-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABI RAMA KARTIKIYEN
• Keywords: Earning of tax free income; Tax effect; Rule 8D
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH C MUMBAI BEFORE SHRI RAVISH SOOD (JUDICIAL MEMBER) AND SHRI N.K. PRADHAN (ACCOUNTANT MEMBER) ITA NO. 5043/MUM/2018 ASSESSMENT YEAR: 2013 - 14 DCIT - 10(3)(2), MUMBAI R. NO. 509, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI - 400020. VS. M/S PARANJAPE PROPERTIES & INVESTMENT PVT. LTD. 1, SOMNATH, CTS NO. 988, VILE PARLE (EAST), MUMBAI - 400057. PAN NO. AACCP1940R APPELLANT RESPONDENT REVENUE BY : MR. ABI RAMA KARTIKIYEN, DR ASSESSEE BY : NONE DATE OF HEARING : 04/04/2019 DATE OF PRONOUNCEMENT: 04/04/2019 ORDER PER N.K. PRADHAN, A.M. THE APPELLANT HAS FILED A WRITTEN SUBMISSION STATING AS UNDER: IN THE ABOVE REFERRED CASE APPEAL WAS FILED BEFORE THE HONBLE ITAT ALTHOUGH THE TAX EFFECT INVOLVED WAS BEFORE THE PRESCRIBED MONETARY LIMIT AS SPECIFIED IN CBDT CIRCULAR NO. 03/2018 DATED 1 1.07.2018. THE APPEAL HAD BEEN FILED CONSIDERING THE CIRCULAR OF CBDT NO. 05/2014 DATED 11.02.2014, SPECIFICALLY CLARIFYING THAT DISALLOWANCE U/S 14A OF THE ACT NEEDS TO BE DONE EVEN IF NO EXEMPT INCOME HAS BEEN EARNED BY THE ASSESSEE DURING THE PREVIOUS Y EAR RELATED TO THE CONCERNED YEAR. IN THE LIGHT OF APEX COURT RECENT DECISION IN THE CASE OF CHETTINAD LOGISTICS PVT. LTD. [SPECIAL LEAVE PETITION (CIVIL) DIARY NO. 15631 OF 2018] UPHOLDING THE DECISION OF HONBLE MADRAS HIGH COURT THAT NO DISALLOWANCE U/ S 14A CAN BE MADE IF THERE WAS NO EXEMPT INCOME IN THE RELEVANT AY AND ALSO IN LIGHT M/S PARANJAPE PROPERTIES ITA NO. 5043/MUM/2018 2 OF DECISION OF HONBLE SUPREME COURT IN THE CASE OF PCIT V. STATE BANK OF PATIALA IN SLP (CIVIL) DIARY NO. 24323 OF 2018 DATED 08.11.2018, THE APPEAL FILED IN THE ABOVE ME NTIONED CASE MAY PLEASE BE TREATED AS WITHDRAWN WITHOUT PRESSED. 2. IN THE INSTANT CASE THE DISPUTE IS THE ADDITION OF RS. 11,33,429 / - MADE BY THE AO U/S 14A R.W. RULE 8D, THOUGH NO EXEMPT INCOME WAS EARNED DURING THE YEAR, WHICH WAS SUBSEQUENTLY DELETED BY THE LD. CIT(A). IN VIEW OF THE ABOVE SUBMISSION OF THE APPELLANT, THE PRESENT APPEAL IS DISMISSED AS WITHDRAWN. ORDER PRONOUNCED IN THE OPEN COURT ON 04/04/2019. SD/ - SD/ - (RAVISH SOOD) (N.K. PRADHAN) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED: 04/04/2019 RAHUL SHARMA, SR. P.S. COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A) - 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE . BY ORDER, //TRUE COPY// (SR. PRIVATE SECRETARY) ITAT, MUMBAI