DCIT - 14(3)(1), MUMBAI V. TATA PETRODYNE LTD, MUMBAI

ITA 7169/MUM/2017

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 0246 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 8 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-08-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2013-2014
• Appeal Filed On: 19-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: PRAKASH R MANE
• Keywords: Earning of tax free income
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH E, MUMBAI BEFORE SHRI RAJESH KUMAR, ACCOUNTANT MEMBER AND SHRI RAM LAL NEGI, JUDICIAL MEMBER ITA NO.7169/M/2017 ASSESSMENT YEAR: 2013-14 DCIT 14(3)(1), 4 TH FLOOR, ROOM NO.455, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI - 400020 VS. M/S. TATA PETRODYNE LTD., V FLOOR, WEST WING, THE METROPOLITAN, BKC, BANDRA (E), MUMBAI 400 051 PAN: AAACT0090N (APPELLANT) (R ESPONDENT) PRESENT FOR: ASSESSEE BY : SHRI PRAKASH R. MANE, A.R. REVENUE BY : SHRI FIROZ ANDHYARUJINA, D.R. DATE OF HEARING : 27.06.2019 DATE OF PRONOUNCEMENT : 21.08.2019 O R D E R PER RAJESH KUMAR, ACCOUNTANT MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE REVEN UE AGAINST THE ORDER DATED 31.10.2017 OF THE COMMISSIO NER OF INCOME TAX (APPEALS) [HEREINAFTER REFERRED TO AS TH E CIT(A)] RELEVANT TO ASSESSMENT YEAR 2013-14. 2. THE REVENUE HAS RAISED VARIOUS GROUNDS CHALLENGI NG THE ORDER OF THE LD. CIT(A) WHEREBY THE LD. CIT(A) HAS DIRECTED THE AO TO EXCLUDE THOSE INVESTMENTS WHICH DID NOT YIELD ANY EXEMPT INCOME DURING THE YEAR AND CALCULATE THE DISALLOWAN CE UNDER SECTION 14A OF THE ACT ACCORDINGLY. AFTER PERUSING THE FACTS ON RECORD AND HEARING THE RIVAL PARTIES, WE OBSERVE TH AT THE ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE AND AGAI NST THE REVENUE BY THE DECISION OF SPECIAL BENCH IN THE CAS E OF ACIT VS. ITA NO.7169/M/2017 M/S. TATA PETRODYNE LTD. 2 VIREET INVESTMENTS PVT. LTD. (2017) 82 TAXMAN.COM 41 5 (DEL-TRI.- SPECIAL BENCH) WHEREIN THE HONBLE SPECIAL BENCH HA S HELD THAT ONLY THOSE INVESTMENTS ARE TO BE CONSIDERED FOR THE PURPOSE OF COMPUTING AVERAGE INVESTMENTS WHICH YIELDED EXEMPT INCOME DURING THE YEAR. WE, THEREFORE, RESPECTFULLY FOLLO WING THE SAME ARE INCLINED TO DISMISS THE APPEAL OF THE REVENUE. ORDER PRONOUNCED IN THE OPEN COURT ON 21.08.2019. SD/- SD/- ( RAM LAL NEGI) (RAJESH KUMAR) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DATED: 21.08.2019. * KISHORE, SR. P.S. COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT (A) CONCERNED, MUMBAI THE DR CONCERNED BENCH //TRUE COPY// [ BY ORDER DY/ASS TT. REGISTRAR, ITAT, MUMBAI.