Deputy Commissioner of Income Tax Circle-1(1)(1), Bangalore V. M/s A S K Brothers Ltd , Bangalore

ITA 854/BANG/2018

• Counselvise Citation: [2018] 124 COUNSELVISE.COM (IT) 7147 (ITAT-BANGALORE)
• Duration Of Justice: 6 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-09-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2004-2005
• Appeal Filed On: 20-03-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR P V PRADEEP KUMAR
• Assessee Lawyers: V SRINIVASAN
• Keywords: Earning of tax free income
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : BANGALORE BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI ARUN KUMAR GARODIA, ACCOUNTANT MEMBER ITA NO S. 868 & 854 /BANG/201 8 ASSESSMENT YEAR S : 20 02 - 03 & 2004 - 05 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 1 (1) (1), BANGALORE. VS. M/S. A S K BROTHERS LTD., NO. 29/4, 4 TH FLOOR, TRADE CENTRE, RACE COURSE ROAD, BANGALORE 560 001. PAN: AABCA2386D APPELLANT RESPONDENT ASSESSEE BY : SHRI V. SRINIVASAN, ADVOCATE RE VENUE BY : DR. P.V. PRADEEP KUMAR, ADDL. CIT (DR) DATE OF HEARING : 24 . 0 9 .2018 DATE OF PRONOUNCEMENT : 28. 0 9 .2018 O R D E R PER SHRI A.K. GARODIA, ACCOUNTANT MEMBER BOTH THESE APPEALS ARE FILED BY THE REVENUE AND THE SE ARE DIRECTED AGAINST TWO SEPARATE ORDERS OF LD. CIT(A)-1, BANGALORE BOTH DAT ED 22.11.2017 FOR ASSESSMENT YEARS 2002-03 AND 2004-05. BOTH THESE A PPEALS WERE HEARD TOGETHER AND ARE BEING DISPOSED OF BY WAY OF THIS C OMMON ORDER FOR THE SAKE OF CONVENIENCE. 2. THE LD. DR OF REVENUE SUPPORTED THE ASSESSMENT O RDERS WHEREAS THE LD. AR OF ASSESSEE SUPPORTED THE ORDERS OF CIT(A). HE FURTHE R SUBMITTED THAT A CATEGORICAL FINDING HAS BEEN GIVEN BY LD. CIT(A) IN PARA NO. 5 OF BOTH THESE ORDERS THAT THERE IS NO EXEMPT INCOME DURING THE RE LEVANT YEAR. HE SUBMITTED THAT AS PER THE JUDGEMENT OF HONBLE DELHI HIGH COU RT RENDERED IN THE CASE OF CHEMINVEST PVT. LTD. VS. CIT AS REPORTED IN (2015) 378 ITR 33(DELHI), IT WAS HELD THAT NO DISALLOWANCE U/S. 14A CAN BE MADE IN A YEAR IN WHICH NO EXEMPT INCOME HAS BEEN EARNED OR RECEIVED BY THE ASSESSEE. ITA NOS. 868 & 854/BANG/2018 PAGE 2 OF 2 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND IN VIEW OF THIS CATEGORICAL FINDING OF CIT(A) IN BOTH THE YEARS THAT NO EXEMPT INCOME H AS BEEN EARNED BY ASSESSEE IN ANY OF THESE TWO YEARS, DISALLOWANCE MA DE BY THE AO U/S. 14A OF IT ACT IS NOT SUSTAINABLE. WE HOLD SO BY RESPECTFU LLY FOLLOWING THE JUDGEMENT OF HONBLE DELHI HIGH COURT RENDERED IN THE CASE OF CH EMINVEST PVT. LTD. VS. CIT (SUPRA). 4. IN THE RESULT, BOTH THE APPEALS FILED BY THE REV ENUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE. SD/- SD/- (SUNIL KUMAR YADAV) (ARUN KUMAR GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER BANGALORE, DATED, THE 28 TH SEPTEMBER, 2018. /MS/ COPY TO: 1. APPELLANT 4. CIT(A) 2. RESPONDENT 5. DR, ITAT, BANGALORE 3. CIT 6. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY, INCOME TAX APPELLATE TRIBUNAL, BANGALORE.