ACIT-8(1)(1), MUMBAI V. M/S.NETIZEN ENGINEERING PRIVATE LIMITED, MUMBAI

ITA 6584/MUM/2018

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 4596 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 10 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-10-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 20-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KAVITA P KAUSHIK
• Keywords: Earning of tax free income; Rule 8D
• Section: 14A; 250; 73

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (VIRTUAL C OURT), B BENCH, MUMBAI BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER & SHRI M.BALAGANESH, ACCOUNTANT MEMBER ITA NO. 6584/MUM/2 018 ( ASSESSMENT YEAR :2013-14 ) ACIT - 8(1)(1) ROOM NO.624, 6 TH FLOOR AAYKAR BHAWAN, M.K.ROAD MUMBAI-400 020 VS. NETIZEN ENGINEERING PVT.LTD. FLAT NO.19& 20, 6 TH FLOOR, 90, MANEK MAHAL, VEER NARIMAN ROAD, CHURCHGATE MUMBAI-400 020 PAN/GIR NO. AABCR7570C (A PPELLANT ) .. (RESPONDENT ) ASSESSEE BY NONE REVENUE BY MS. KAVITA P. KAUSHIK, SR.DR DATE OF HEARING 13/10/2020 DATE OF PRONOUNCEMENT 14 /10/2020 / O R D E R PER S.S.GODARA (J.M ) : THIS REVENUES APPEAL FOR A.Y.2013-14 ARISES FROM M UMBAIS ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-14, IN CASE NO.CIT(A)-14/IT-45/16-17 DATED 26/07/2018, IN PROC EEDINGS U/S.143(3) OF THE INCOME TAX ACT, 1961 [HEREINAFTER REFERRED T O AS ACT]. 2. NONE APPEARED FOR THE ASSESSEE. WE HAVE HEARD TH E MS. KAVITHA P. KOUSHIK, LEARNED SENIOR DEPARTMENTAL REP RESENTATIVE APPEARING AT THE REVENUES BEHEST. SHE VEHEMENTLY CONTENDED THAT THE CIT(A) HAS ERRED IN LAW AND FACTS IN DELET ING SECTION 14A R.W.RULE 8D DISALLOWANCE OF RS.3,21,06,151/- MADE B Y THE ASSESSING OFFICER IN ASSESSMENT ORDER DATED 17/03/2 016. WE NOTICE ITA NO.6584/MUM/2018 M/S. NETIZEN ENGINEERING PVT.LTD. 2 AT THE OUTSET THAT THIS ASSESSEE HAS NOT DERIVED A NY EXEMPT INCOME IN THE RELEVANT PREVIOUS YEAR. CASE LAW CIT V. HOLCIM INDIA (P.) LTD. [2015] 57 TXMANN.COM 28 AND PR.CIT VS IL & FS ENERG Y DEVELOPMENT COMPANY LTD. [2017] 84 TAXMANN.COM 186, REDINGTON (INDIA) LTD. V. ADDL. CIT [2017] 392 ITR 633/77 TAX MANN.COM 257 (MAD.), CIT V. LAKHAN I MARKETING INC. [2014] 49 TA XMANN.COM 257/226 TAXMAN 45 (MAG.), CIT V. WINSOME TEXTILE IN DUSTRIES LTD. [2009] 319 ITR 204, CIT V. SHIVAM MOTORS (P.) LTD. [2015] 230 TAXMAN 63/55 TAXMANN.COM 262 (ALL.) AND QUANTUM ADV ISORS (P.) LTD. VS. DCIT [2016] 73 TAXMANN.COM 233 (MUMBAI-TRI B.) AND CIT V. CHETINAD LOGISTICS (P.) LTD. [2017] 80 TAXMANN.COM 221/248 TAXMAN 55 (MAD.), CIT VS CHETTINAD LOGISTICS (P.) L TD. [2018] 95 TAXMANN.COM 250 (SC)] HOLD THAT THE IMPUGNED DISALLOWANCES PROVISION DOES NOT COME INTO PLAY IN ABSENCE OF ANY EXEMPT INCOME DERIVED IN RELEVANT PREVIOUS YEAR. THERE IS NO CHAN GE STATED AT THE REVENUES BEHEST IN THE PRECEDING LEGAL POSITION. W E THEREFORE AFFIRM THE CIT(A) ACTION DELETING THE IMPUGNED DIS ALLOWANCE FOR THIS PRECISE REASON. 3. THIS REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 14/10 / 2020 SD/- (M.BALAGANESH) SD/- (S.S.GODARA ) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI ; DATED 14/10/2020 THIRUMALESH , SR.PS ITA NO.6584/MUM/2018 M/S. NETIZEN ENGINEERING PVT.LTD. 3 COPY OF THE ORDER FORWARDED TO : BY ORDER, ( ASSTT. REGISTRAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//