Dy. Commissioner of Income Tax , Circle-1(1), Hyderabad V. A V S R Holdings Private Limited , Hyderabad

ITA 824/Hyd/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 9698 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 9 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-03-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB-A
• Next Hearing Date: 22-02-2021
• Assessment Year: 2015-2016
• Appeal Filed On: 21-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Earning of tax free income; Rule 8D
• Section: 143(3); 14A; 201; 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD. BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER (THROUGH VIRTUAL HEARING) ITA NO. 824 /HYD/201 9 (ASSESSMENT YEAR : 201 5 - 16 ) DY. COMMISSIONER OF INCOME TAX, CIRCLE 1(1), HYDERABD. VS. M/S. AVSR HOLDINGS PRIVATE LIMITED, S.NO.64, NCC HOUSE, MADHAPUR, HYDERABAD - 500 081, TELANGANA. PAN AAFCA 0455K APPELLANT RESPONDENT APPELLANT BY : SHRI A.V. RAGHURAM. RESPONDENT BY : SHRI SUNIL KUMAR PANDEY (D.R) DATE OF HEARING : 22.02. 2021. DATE OF PRONOUNCEMENT : 17 .03. 2021. O R D E R PER SHRI S.S. GODARA, J.M. : THIS R EVENUE S APPEAL FOR ASST. YEAR 20 15 - 16 ARISES FROM THE COMMISSIONER OF INCOME TAX (APPEALS) - 1 1 , HYDERABAD S ORDER DT. 17.12.2018 PASSED IN THE CASE OF APPEAL NO. 366/2017 - 18/ACIT CC - 1(1)/CIT(A)/11/2018 - 19/HYD IN VOLVING PROCEEDINGS UNDER SECTION 143(3) OF INCOME TAX ACT, 1961 (THE ACT). HEARD BOTH THE PARTIES . C ASE FILE PERUSE D. 2. THE R EVENUES SOLITARY SUBSTANTIVE GRIEVANCE RAISED IN THE INSTANT APPEAL CHALLENG ES CORRECTNESS OF THE CIT(A) LOWER APPELLATE ORDER, RESTRICTING THE ASSESSING OFFICERS ACTION INVOKING SECTION 14A DISALLOWANCE OF RS.3,05,34,457 TO THE TUNE OF RS.S28,29,433 ONLY. THE LEARNED DR FAILS TO DISPUTE THAT TH IS LATTER SUM REPRESENTS THE AMOUNT OF ASSESSEE'S EXEMPT 2 ITA NO. 824/HYD/2019 INCOME IN THE NATURE OF DIVIDEND DERIVED IN THE RELEVANT PREVIOUS YEAR. THE CIT(A) HAS THEREFORE QUANTIFIED THE IMPUGNED DISALLOWANCE TO THE EXTENT OF EXEMPT INCOME ONLY . WE NOTICE THAT HONBLE DELHI H IGH C IN JT. INVESTMENTS PVT. LTD. VS. CIT 372 ITR 694 (DEL) HOLDS THAT THE IMPUGNED DISALLOWANCE COULD NOT EXCEED THE AMOUNT OF EXEMPT INCOME ITSELF . NO REBUTTAL TO THIS LEGAL PROPOSITION HAS C OME FROM THE R EVENUES SIDE. WE THUS UPHOLD THE CIT(A)S ACTION RESTRICTING THE IMPUGNED DISALLOWANCE U/S.14A R.W. RULE 8D OF THE IT RULES TO THE EXTENT OF ASSESSEE'S EXEMPT INCOME ONLY. 3. NO OTHER ARGUMENTS HAVE BEEN RAISED BEFORE US. 4 . THIS R EVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 17TH MARCH, 2021. SD/ - SD/ - (LAXMI PRASAD SAHU) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DT. 17.03 .2021. * REDDY GP COPY TO : 1. M/S. AVSR HO LDINGS PRIVATE LIMITED, S.NO.64, NCC HOUSE, MADHAPUR, HYDERABAD - 500 081, TELANGANA. 2. DCIT, CIRCLE 1(1), HYDERABAD. 3. PR. C I T (CENTRAL), HYDERABAD. 4. CIT(APPEALS) - 11, HYDERABAD. 5. DR, ITAT, HYDERABAD. 6. GUARD FILE. BY ORDER SR. PVT. SECRETARY, ITAT, HYDERABAD.