ASSISTANT COMMISSIONER OF INCOME TAX, KOTA V. M/S N R SWITCH - -RADIO, KOTA

ITA 951/JPR/2018

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 5309 (ITAT-JAIPUR)
• Duration Of Justice: 2 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-10-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 09-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAN SINGH
• Assessee Lawyers: SANJEEV MATHUR CA DHK
• Keywords: Earning of tax free income; Tax effect
• Section: 14A

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH FOT; IKY JKWO] U;KF;D LNL; ,OA JH FOE FLAG ;K NO ] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM AND SHRI VIKRAM SING H YADAV, AM VK;DJ VIHY LA-@ ITA NO. 951/JP/2018 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2014-15. ASSTT. COMMISSIONER OF INCOME - TAX, CIRCLE-1, KOTA. CUKE VS. M/S. N.R. SWITCH N. RADIO SERVICE P. LTD., E-17, RIICO ELECTRONICS COMPLEX, I.P.I.A. KOTA. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AABCN 1300 L VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY : SHRI RAN SINGH (ADDL. CIT) FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI SANJEEV MATHUR (CA) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 10.10.2018. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 12/10/2018. VKNS'K@ ORDER PER VIJAY PAL RAO, JM : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 23 RD MAY, 2018 OF LD. CIT (A), KOTA FOR THE ASSESSMENT YEAR 2014-15. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS :- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE , THE LD. CIT (A) HAS ERRED IN :- (I) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT (A) HAS ERRED IN DELETING THE ADDITION OF RS. 7734/ - MADE BY THE AO U/S 14A R.W.R. 8D. (II) THE APPELLANT CRAVES LIBERTY TO RAISE ADDITIONAL GR OUND AND TO MODIFY/AMEND THE GROUND OF APPEAL AT THE TIME OF HE ARING. 2 ITA NO. 951/JP/2018 M/S. N.R. SWITCH N RADIO SERVICE PVT. LTD., KOTA. THE ISSUE FALLS UNDER EXCEPTION AS MENTIONED IN PAR A 10(B) OF BOARDS CIRCULAR NO. 3/2018 DATED 11.07.2018. 2. WE HAVE HEARD THE LD. D/R AS WELL AS THE LD. A/R AND CAREFULLY PERUSED THE IMPUGNED ORDER OF LD. CIT (A). AS APPARENT FROM TH E GROUND NO. 1 OF THE REVENUES APPEAL THAT THE TAX EFFECT IN THIS APPEAL IS NOT EX CEEDING RS. 20 LACS AND, THEREFORE, THE MONETARY LIMIT PROVIDED UNDER CBDT CIRCULAR NO. 3/2018 DATED 11.07.2018 RENDERS THE APPEAL FILED BY THE DEPARTMENT NOT MAIN TAINABLE. THE LD. D/R HAS SUBMITTED THAT THE ISSUE OF DISALLOWANCE MADE BY TH E AO UNDER SECTION 14A READ WITH RULE 8D WHICH WAS DELETED BY THE LD. CIT (A) W ITHOUT FOLLOWING THE CIRCULAR NO. 5/2014. HENCE THE CASE FALLS IN THE EXCEPTION PROV IDED IN PARA 10(B) OF THE CIRCULAR. WE NOTE THAT THE LD. CIT (A) HAS DELETED THE DISALL OWANCE MADE BY THE AO ON THE GROUND THAT THE ASSESSEE HAS NOT EARNED ANY EXEMPT INCOME AND, THEREFORE, FOLLOWING THE VARIOUS DECISIONS ON THIS ISSUE, NO D ISALLOWANCE CAN BE MADE UNDER SECTION 14A. THUS IT IS CLEAR THAT THE LD. CIT (A) HAS NOT GIVEN THE FINDING ON THE ISSUE BY HOLDING THAT THE CIRCULAR ISSUED BY THE CB DT IS ILLEGAL OR ULTRA VIRUS BUT THE ISSUE HAS BEEN DECIDED BY FOLLOWING THE DECISIONS O F HONBLE HIGH COURTS. HENCE WHEN NO ISSUE IS INVOLVED IN THIS CASE WHERE THE CB DT CIRCULAR IS EITHER HELD ILLEGAL OR ULTRA VIRUS, THEN THE CASE WOULD NOT FALL IN THE EX CEPTION UNDER PARA 10(B) OF THE CIRCULAR NO. 3/2018 AS CLAIMED BY THE REVENUE. ACCO RDINGLY WHEN THE TAX EFFECT IN THE APPEAL OF THE REVENUE IS BELOW THE LIMIT SET OUT BY CBDT FOR THE APPEAL, THE APPEAL OF THE ASSESSEE IS NOT MAINTAINABLE IN VIEW OF CBDT CI RCULAR NO. 3 OF 2018 DATED 11.07.2018. ACCORDINGLY THE APPEAL OF THE DEPARTMENT IS DISMISS ED AS NOT MAINTAINABLE. 3 ITA NO. 951/JP/2018 M/S. N.R. SWITCH N RADIO SERVICE PVT. LTD., KOTA. 3. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER IS PRONOUNCED IN THE OPEN COURT ON 12/10/201 8. SD/- SD/- ( FOE FLAG ;KNO ) ( FOT; IKY JKWO (VIKRAM SINGH YADAV ) (VIJAY PAL RAO) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 12/10/2018. DAS/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- THE ACIT, CIRCLE-1, KOTA 2. THE RESPONDENT M/S. N.R. SWITCH N RADIO SERVIC E P. LTD., KOTA. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 951/JP/2018) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR 4 ITA NO. 951/JP/2018 M/S. N.R. SWITCH N RADIO SERVICE PVT. LTD., KOTA.