DY CIT 1 (3)(2), MUMBAI V. M/S UNI DERITEND LTD., MUMBAI

ITA 6899/MUM/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 9497 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 7 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-06-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2010-2011
• Appeal Filed On: 08-11-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJESH K YADAV
• Keywords: Earning of tax free income; Tax effect; Rule 8D
• Section: 14A; 201; 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (VIRTUAL COURT) F BENCH , MUMBAI BEFORE SHRI C.N. PRASAD , HONBLE JUDICIAL MEMBER AND SHRI MANOJ KUMAR AGGARWAL , HONBLE ACCOUNTANT MEMBER ITA NO . 6899 /MUM/201 9 ( A.Y: 201 0 - 11) DY.CIT - 1(3)(2) ROOM NO. 540, 5 TH FLOOR AAYAKAR BHAVAN, M.K. ROAD MUMBAI V. M/S. UNI DERITEND LIMITED. 3 RD FLOOR, LIBERTY BUILDING SIR VITHALDAS THACKERSEY MARG NEW MARINE LINES, MUMBAI 400 020 PAN: AAACU0028K (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI SANJAY PARIKH DEPARTMENT BY : SHRI RAJESH K. YADAV DATE OF HEARING : 22.06.2021 DATE OF PRONOUNCEMENT : 22.06.2021 O R D E R PER C.N. PRASAD (JM) THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) - 3 , MUMBAI [HEREINAFTER IN SHORT LD.CIT(A)] IN APPEAL NO. CIT(A) - 3/ IT - 10357/2017 - 18 DATED 26.08.2019 FOR THE ASSESSMENT YEAR 201 0 - 11. 2. REVENUE HAS RAISED THE FOLLOWING GROUND IN ITS APPEAL : - 1) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE L D. CIT( A ) ERRED' IN DELETING THE DISALLOWANCE MADE U/S. 14A OF THE INCOME TAX ACT R.W. RULE 8D(2)(II) IGNORING THE FACT THAT THE CBDT HAS ISSUED CIRCULAR NO. 2 ITA NO. 6899/MUM/2019 (A.Y: 2010 - 11) M/S. UNI DERITEND LIMITED. 5 OF 2014 DATED 11.02.2014, WHEREIN, IT WAS CLARIFIED THAT RULE 8D READ WITH SECTION 14A OF T HE ACT PROVIDES FOR DISALLOWANCE OF THE EXPENDITURE EVEN WHERE TAX PAYER IN A PARTICULAR YEAR HAS NOT EARNED ANY EXEMPT INCOME. 3. AT THE TIME OF HEARING OF APPEAL VIRTUALLY, AUTHORIZED REPRESENTATIVE OF THE ASSESSEE SUBMITTED THAT TAX EFFECT ON THE ISSUE IN THE PRESENT APPEAL IS BELOW .50 LACS AND IN VIEW OF THE CBDT CIRCULAR NO. 17/2019 DATED 08.08.2019 IN F.NO.279/MISC.142/2007 - ITJ (PT), THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE. 4. DEPARTMENTAL REPRESENTATIVE ALSO AGREED WITH THE ABOVE SUBMISSION OF T HE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE. 5. WE HAVE HEARD THE SUBMISSIONS AND PERUSED THE GROUNDS OF APPEAL IN THIS APPEAL. WE FIND THAT THE TAX EFF ECT IN THIS APPEAL IS LESS THAN .50 LAKHS AND THEREFORE THE APPEAL OF THE REVENUE IS NOT MAINTAINABLE ON ACCOUNT OF LOW TAX EFFECT IN VIEW OF THE CBDT CIRCULAR NO. 17/2019 DATED 08.08.2019. HENCE THIS APPEAL IS DISMISSED. 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONO UNCED IN THE VIRTUAL COURT ON 22 .06.2021 SD/ - SD/ - ( MANOJ KUMAR AGGARWAL ) (C.N. PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI / DATED 22.06.2021 GIRIDHAR, SR.PS 3 ITA NO. 6899/MUM/2019 (A.Y: 2010 - 11) M/S. UNI DERITEND LIMITED. COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY// BY ORDER, (ASSTT. REGISTRAR) ITAT, MUM