Tarini Steel Comapny Ltd, Pune V. Assistant Commissioner of Income-tax, Circle - 8, Pune

ITA 723/PUN/2019

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 0207 (ITAT-PUNE)
• Duration Of Justice: 3 year(s) 2 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-07-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 05-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Earning of tax free income; Rule 8D
• Section: 143(3); 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B”, PUNE BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER ITA Nos.723 & 724/PUN/2019 निर्धारण वषा / Assessment Years : 2013-14 & 2014-15 Tarini Steel Company Ltd., 101, General Block, MIDC, Telco Road, Bhosari, Pune – 26 PAN : AAACT6346H Vs. ACIT, Circle-8, Pune Appellant Respondent आदेश / ORDER PER S.S. GODARA, JM : These assessee‟s twin appeals for assessment years 2013-14 and 2014-15 arise against the CIT(A)-6, Pune‟s common order dated 26.02.2019 passed in case Nos.PN/CIT(A)-6/ACIT Cir- 10/376/15-16 & PN/CIT(A)-6/ACIT Cir-10/10199/17-18 respectively, in proceedings under Section 143(3) of the Income Tax Act, 1961, in short „the Act‟. Heard both the parties. Case files perused. 2. Coming to the assessee‟s identical sole substantive grievance that both the learned lower authorities have erred in law and on Assessee by Shri Sarvesh Khandelwal Revenue by Shri M.G. Jasnani Date of hearing 14-07-2022 Date of pronouncement 27-07-2022 ITA Nos.723 & 724/PUN/2019 Tarini Steel Company Ltd. 2 facts in making section 14A read with rule 8D disallowance of Rs.2,13,600/- and Rs.22,62,658/-; assessment year-wise, respectively, it emerges at the outset with the able assistance coming from both the sides that this taxpayer had not derived any exempt income in former assessment year and the relevant figure in latter assessment year reads a sum of Rs.18,382.19 only. That being the case, we quote PCIT vs. Kohinoor Projects Pvt. Ltd. (2020) 425 ITR 700 (Bom) that section 14A read with rule 8D only comes into play “in relation” to an assessee‟s exempt income derived in the relevant previous year than having any independent exigibility. We thus accept the assessee‟s instant former appeal No.723/PUN/2019 for this precise reason alone. 3. The factual position is admittedly a little different in assessment year 2014-15‟s appeal ITA No.724/PUN/2019 wherein the assessee has derived exempt income amounting to Rs.18,382.19 only. We quote Joint Investments (P) Ltd. vs. CIT 372 ITR 694 (Del) that such section 14A read with rule 8D disallowance ought not to exceed the assessee‟s exempt income itself to restrict the same from Rs.22,62,658/- to Rs.18,382.19 in very terms. The Revenue‟s vehement contentions supporting the ITA Nos.723 & 724/PUN/2019 Tarini Steel Company Ltd. 3 impugned disallowance are partly accepted in very terms. So is the outcome of this latter main appeal No.724/PUN/2019. Ordered accordingly. 4. To sum up, the assessee‟s former appeal No.723/PUN/2019 is allowed and latter appeal No.724/PUN/2019 is partly allowed in above terms. A copy of this common order be placed in the respective case files. Order pronounced in the Open Court on 27 th July, 2022. Sd/- Sd/- (DIPAK P. RIPOTE) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER प ु णे Pune; ददिधांक Dated : 27 th July, 2022 GCVSR आदेश की प्रतिलिपि अग्रेपिि/Copy of the Order is forwarded to: 1. अपीऱधर्थी / The Appellant; 2. प्रत्यर्थी / The Respondent; 3. The CIT(A)-6, Pune 4. 5. The Pr.CIT-5, Pune विभागीय प्रविविवि, आयकर अपीलीय अविकरण, पुणे “B” / DR „B‟, ITAT, Pune 6. गार्ड फाईल / Guard file आदेशान ु सार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अविकरण ,पुणे / ITAT, Pune ITA Nos.723 & 724/PUN/2019 Tarini Steel Company Ltd. 4 Date 1. Draft dictated on 14-07-2022 Sr.PS 2. Draft placed before author 26-07-2022 Sr.PS 3. Draft proposed & placed before the second member JM 4. Draft discussed/approved by Second Member. JM 5. Approved Draft comes to the Sr.PS/PS Sr.PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order.