Dy.CIT, Circle-16(3), Hyderabad V. M/s Prithivi Information Solutions Ltd., Hyderabad

ITA 541/HYD/2014

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 7666 (ITAT-HYDERABAD)
• Duration Of Justice: 5 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-09-2014
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 26-03-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Earning of tax free income

Judgement Text

19 ITA NO.472 & 541 /HYD/2014 M/S PRITHVI INFORMATION SOLUTIONS LTD. 8D(2)(II). THE ONLY DISALLOWANCE, THE AO POSSIBLY C AN MAKE IS UNDER RULE 8D(2)(III) OF AN AMOUNT OF 0.5% ON THE AVERAGE VALUE OF INVESTMENTS AS SUCH DISALLOWANCE HAS TO BE MADE IRR ESPECTIVE OF THE FACT WHETHER OR NOT ASSESSEE HAS INCURRED ANY EXPEN DITURE FOR EARNING EXEMPT INCOME. THE AO MADE ADDITION U/S 8D(2)(III) ALSO, BUT, DRP WITHOUT ANY DISCUSSION DELETED THE SAME. WE, THEREF ORE, REMIT THIS ISSUE TO THE FILE OF THE AO TO COMPUTE THE DISALLOW ANCE TO BE MADE, IF ANY, AS PER RULE 8D(2)(III) AFTER GIVING A REASONAB LE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 37. THIS APPEAL IS PARTLY ALLOWED FOR STATISTICAL P URPOSES. 38. TO SUM UP, ASSESSEES APPEAL IN ITA NO. 472/HYD /14 AND REVENUES APPEAL IN ITA NO. 541/HYD/14 ARE PARTLY A LLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 25 /09/2014. SD/- SD/- (B. RAMAKOTAIAH) (SAKTIJIT DEY) ACCOUNTANT MEMBER JU DICIAL MEMBER HYDERABAD, DATED: 25 TH SEPTEMBER, 2014 KV COPY TO:- 1) M/S PRITHVI INFORMATION SOLUTIONS LTD., C/O P. MURALI & CO., CAS., 6-3-655/2/3, 1 ST FLOOR, SOMAJIGUDA, HYDERABAD 500 082 2) DCIT, CIRCLE 16(3), HYDERABAD 3) DRP, HYDERABAD 4) DIT(INTERNATIONAL TAXATION) , HYDERABAD 5) CIT-IV, HYDERABAD 6)THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDER ABAD.