Maheswari Plaza Resorts Limited, Hyderabad V. Asst. Commissioner of Income Tax, Circle-16(2), Hyderabad

ITA 694/Hyd/2018

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 6593 (ITAT-HYDERABAD)
• Duration Of Justice: 3 year(s) 4 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-09-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB-B
• Assessment Year: 2013-2014
• Appeal Filed On: 16-04-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ROHIT MUJUMDARDR
• Assessee Lawyers: B SATYANARAYANA MURTHY
• Keywords: Earning of tax free income; Speculation loss; Rule 8D
• Section: 14A

Judgement Text

ITA NOS 693 AND 694 OF 2018 MAHESHWARI PLAZA RESOR TS LTD HYDERABAD PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD (THROUGH VIDEO CONFERENCING) BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER ITA NOS. 693 & 694/HYD/2018 ASSESSMENT YEARS: 2012-13 & 2013-14 MAHESHWARI PLAZA RESORTS LTD, HYDERABAD PAN:AABCM6346D VS. A.C.I.T CIRCLE 16(2) HYDERABAD (APPELLANT) (RESPONDENT) ASSESSEE BY: SRI B. SATYANARAYANA MURTHY REVENUE BY : SRI ROHIT MUJUMDAR,DR DATE OF HEARING: 26/08/2021 DATE OF PRONOUNCEMENT: 08/09/2021 ORDER PER S. S. GODARA, J.M. BOTH ARE ASSESSEES APPEALS FOR THE A.YS 2012-13 & 2013-14 AGAINST THE ORDERS OF THE CIT (A)-4, HYDERA BAD IN APPEAL NO.0125/2015-16/ITO, WARD-16(3)/CIT(A)-4/HYD/17-18 AND IN APPEAL NO.0390/2015-16/AICT. CIR. 16(2)/CIT(A)-4/HY D/17-18, BOTH DATED 16.01.2018. HEARD BOTH THE PARTIES. CASE FILES PERUSED. 2. THE ASSESSEES IDENTICAL FIRST AND FOREMOST SUBS TANTIVE GROUND IN BOTH THESE APPEALS CHALLENGES CORRECTNESS OF DISALLOWANCE OF SPECULATION LOSS (ES) AMOUNTING TO RS.1,56,41,715/- AND RS.46,05,104/-, RESPECTIVELY I S REJECTED AS NOT PRESSED DURING THE COURSE OF HEARING AS PER THE LEARNED ARS STATEMENT AT THE BAR. BOTH THE LEARNED LOWER AUTHOR ITIES ACTION TO THIS EFFECT STANDS UPHELD THEREFORE. ITA NOS 693 AND 694 OF 2018 MAHESHWARI PLAZA RESOR TS LTD HYDERABAD PAGE 2 OF 2 4. NEXT COMES SECTION 14A R.W. RULE 8D DISALLOWANCE OF RS.6,28,033 AND RS.1,03,061 ASSESSMENT YEAR-WISE RE SPECTIVELY. THERE IS NO DISPUTE ABOUT THE CLINCHING FACT THAT T HE ASSESSEE HAD INDEED DERIVED ITS CORRESPONDING EXEMPT INCOME IN B OTH THESE ASSESSMENT YEARS. WE FURTHER NOTE THAT THE HON'BLE DELHI HIGH COURTS DECISION IN JOINT INVESTMENT PVT LTD VS. CI T 372 ITR 694 (DEL.) HOLDS THAT THE IMPUGNED SECTION 14A R.W. RUL E 8D DISALLOWANCE DOES NOT EXCEED THE AMOUNT OF EXEMPT I NCOME ITSELF. WE THEREFORE PARTLY DECLINE REVENUES ARGUMENTS SUP PORTING THE SAME TO THIS LIMITED EXTENT. THE ASSESSING OFFICER IS DIRECTED TO FINALISE HIS CONSEQUENTIAL COMPUTATION IN BOTH THES E ASSESSMENT YEARS AND SHALL MAKE SURE THAT THE DISALLOWANCE SUM SHALL NOT EXCEED THE ASSESSEES CORRESPONDING EXEMPT INCOME; AS THE CASE MAY BE. (NO OTHER GROUND HAS BEEN PRESSED BEFORE U S). THESE TWO ASSESSEES APPEALS ARE PARTLY ALLOWED IN ABOVE TERM S. A COPY OF THE ORDER MAY BE PLACED IN BOTH THE FILES. ORDER PRONOUNCED IN THE OPEN COURT ON 8 TH SEPTEMBER,2021. SD/- SD/- (LAXMI PRASAD SAHU) ACCOUNTANT MEMBER (S.S. GODARA) JUDICIAL MEMBER HYDERABAD, DATED 8 TH SEPTEMBER, 2021. VINODAN/SPS COPY TO: S.NO ADDRESSES 1 VENUGOPAL & CHENOY, C.A 4-1-889/16/2, TILAK ROAD , HYDERABAD 500001 2 INCOME TAX OFFICER - 16(3) HYDERABAD AND ACIT CIRCLE 16(2) HYDERABAD 3 CIT (A) - 4, HYDERABAD 4 PR. CIT -4, HYDERABAD 5 DR, ITAT HYDERABAD BENCHES 6 GUARD FILE BY ORDER