M/s. Voora Property Developers Pvt.Ltd., CHENNAI V. ACIT, CHENNAI

ITA 868/CHNY/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 1479 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-06-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 01-04-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S BHARATH
• Assessee Lawyers: S SRIDHAR
• Keywords: Earning of tax free income; Rule 8D
• Section: 14A

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , A BENCH, CHENNAI [ , , BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ I.T.A.NO.868/CHNY/2019 ( [ [ / ASSESSMENT YEAR:2014-15) M/S. VOORA PROPERTY DEVELOPERS P. LTD., NEW NO.28, OLD NO.79, VOORA JK TOWERS, 4 TH FLOOR, BAZULLAH ROAD, T. NAGAR, CHENNAI 600 017. VS THE ASST. COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 3(2), CHENNAI PAN: AAACV5747J ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : SHRI S. SRIDHAR, ADVOCATE / RESPONDENT BY : SHRI S. BHARATH, CIT /DATE OF HEARING : 13.06.2019 /DATE OF PRONOUNCEMENT : 13.06.2019 / O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER: THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-11, CHENNAI IN APPEAL NO.270/16-17 DATED 11.01.2019 FOR THE ASSESSMENT YEAR 2014-15. 2. SHRI S. SRIDHAR REPRESENTED ON BEHALF OF THE ASSESSEE AND SHRI S. BHARATH REPRESENTED ON BEHALF OF THE REVENUE. 2 ITA NO.868/CHNY/2019 3. IT WAS SUBMITTED BY THE LD.AR THAT THE ONLY ISSUE IN THE ASSESSEES APPEAL WAS AGAINST THE ACTION OF THE LD.CIT(A) IN CONFIRMING THE DISALLOWANCE MADE BY INVOKING THE PROVISIONS OF SECTION 14A READ WITH RULE 8D OF THE RULES. IT WAS THE SUBMISSION THAT THE ASSESSEE HAD NOT EARNED ANY EXEMPT INCOME DURING THE RELEVANT ASSESSMENT YEAR. FOR THIS PURPOSE, THE LD.AR PLACED BEFORE US COPY OF THE BALANCE SHEET, PROFIT & LOSS ACCOUNT OF THE ASSESSEE, WHEREIN IN NOTE-19 TO THE BALANCE SHEET UNDER THE HEAD OTHER INCOME, THERE IS NO EXEMPT INCOME SHOWN TO HAVE BEEN RECEIVED. IT WAS THE SUBMISSION THAT CONSEQUENTLY IN VIEW OF THE DECISION OF THE HONBLE SUPREME COURT IN THE CASE CHETTINAD LOGISTICS (P.) LTD., NO DISALLOWANCE WAS CALLED OFF. 4. IN REPLY, THE LD.DR VEHEMENTLY SUPPORTED THE ORDER OF THE LD.AO AND LD.CIT(A). 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. A PERUSAL OF THE BALANCE SHEET AND PROFIT & LOSS ACCOUNT OF THE ASSESSEE CLEARLY SHOWS THAT THE ASSESSEE HAS NOT EARNED ANY EXEMPT INCOME. CONSEQUENTLY IN VIEW OF THE PRINCIPLES LAID DOWN BY THE HONBLE 3 ITA NO.868/CHNY/2019 MADRAS HIGH COURT AND HONBLE SUPREME COURT IN THE CASE OF CHETTINAD LOGISTICS (P.) LTD., REPORTED IN [2018] 95 TAXMANN.COM 250, THE ADDITION MADE BY THE LD.AO AND CONFIRMED BY THE LD.CIT(A) BY INVOKING THE PROVISIONS OF SECTION 14A READ WITH RULE 8D OF THE RULES STANDS DELETED. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 13 TH JUNE, 2019 AT CHENNAI. SD/- SD/- /CHENNAI, /DATED 13 TH JUNE, 2019 RSR /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. ( ) /CIT(A) 4. /CIT 5. /DR 6. [ /GF ( ) (S. JAYARAMAN) /ACCOUNTANT MEMBER ( [ ) (GEORGE MATHAN) /JUDICIAL MEMBER