ASSISTANT COMMISSIONER OF INCOME TAX, KOTA V. M/S JHALAWAR NAGRIK SAHKARAI BANK LTD., JHALAWAR

ITA 953/JPR/2018

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 5314 (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: 2013-2014
• Appeal Filed On: 09-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAN SINGH
• Assessee Lawyers: P C PARWAL 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. 953/JP/2018 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2013-14. ASSTT. COMMISSIONER OF INCOME - TAX, CIRCLE-1, KOTA. CUKE VS. M/S.JHALAWAR NAGRIK SAHKARI BANK LTD., TEJ BHAWAN POST OFFICE ROAD, BHAWANI MANDI, JHALAWAR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AAAAJ 0237 F VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY : SHRI RAN SINGH (ADDL. CIT) FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI P.C. PARWAL (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 5 TH MAY, 2018 OF LD. CIT (A), KOTA FOR THE ASSESSMENT YEAR 2013 -14. 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. 2,32, 764/- 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. 953/JP/2018 JHALAWAR NAGRIK SAHKARI BANK LTD., JHALAWAR. 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 (APPEALS). AS APPARENT F ROM THE GROUND NO. 1 OF THE REVENUES APPEAL THAT THE TAX EFFECT IN THIS APPEAL IS NOT EXCEEDING RS. 20 LACS AND, THEREFORE, THE MONETARY LIMIT PROVIDED UNDER CBDT C IRCULAR NO. 3/2018 DATED 11.07.2018 RENDERS THE APPEAL FILED BY THE DEPARTME NT NOT MAINTAINABLE. THE LD. D/R HAS SUBMITTED THAT THE ISSUE OF DISALLOWANCE MA DE BY THE AO UNDER SECTION 14A READ WITH RULE 8D WHICH WAS DELETED BY THE LD. CIT (APPEALS) WITHOUT FOLLOWING THE CIRCULAR NO. 5/2014. HENCE THE CASE FALLS IN THE E XCEPTION PROVIDED IN PARA 10(B) OF THE CIRCULAR. WE NOTE THAT THE LD. CIT (APPEALS) HA S DELETED THE DISALLOWANCE MADE BY THE AO ON THE GROUND THAT THE ASSESSEE HAS NOT E ARNED ANY EXEMPT INCOME AND, THEREFORE, FOLLOWING THE VARIOUS DECISIONS ON THIS ISSUE, NO DISALLOWANCE CAN BE MADE UNDER SECTION 14A. THUS IT IS CLEAR THAT THE LD. C IT (APPEALS) HAS NOT GIVEN THE FINDING ON THE ISSUE BY HOLDING THAT THE CIRCULAR I SSUED BY THE CBDT IS ILLEGAL OR ULTRA VIRUS BUT THE ISSUE HAS BEEN DECIDED BY FOLLOWING T HE DECISIONS OF HONBLE HIGH COURTS. HENCE WHEN NO ISSUE IS INVOLVED IN THIS CAS E WHERE THE CBDT CIRCULAR IS EITHER HELD ILLEGAL OR ULTRA VIRUS, THEN THE CASE W OULD NOT FALL IN THE EXCEPTION UNDER PARA 10(B) OF THE CIRCULAR NO. 3/2018 AS CLAIMED BY THE REVENUE. ACCORDINGLY 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 MAINTAINA BLE IN VIEW OF CBDT CIRCULAR NO. 3 OF 2018 DATED 11.07.2018. ACCORDINGLY THE APPEAL OF TH E DEPARTMENT IS DISMISSED AS NOT MAINTAINABLE. 3 ITA NO. 953/JP/2018 JHALAWAR NAGRIK SAHKARI BANK LTD., JHALAWAR. 3. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER IS PRONOUNCED IN THE OPEN COURT ON 12/10/2 018. 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. JHALAWAR NAGRIK SAHKARI BA NK LTD., JHALAWAR. 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. 953/JP/2018 JHALAWAR NAGRIK SAHKARI BANK LTD., JHALAWAR.