PONNI SUGARS (ERODE) LIMITED, , PERUNGUDI CHENNAI V. DCIT CIRCLE-1(1),LTU, CHENNAI

MA 122/CHNY/2023

AI Insights

The case involves M/s. Ponni Sugars (Erode) Ltd., which filed a miscellaneous application seeking recall of an ex-parte order passed by the Income Tax Appellate Tribunal, Chennai. The application was granted, restoring the appeal to its original status. The main issue in the appeal was the disallowance made under section 14A of the Income Tax Act, which was computed using rule 8D(2)(iii). The tribunal found that the Assessing Officer had appropriately applied the law and recorded satisfaction as required, thus upholding the disallowance.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 133933 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 14 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 21-09-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 21-09-2023
• Assessment Year: 2011-2012
• Appeal Filed On: 07-08-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: N.R.SURESH LD
• Keywords: Rule 8D
• Section: 14A

Judgement Text

आयकर अपीलीय अिधकरण ‘बी’ ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI माननीय +ी मनोज कु मार अ/वाल ,लेखा सद4 एवं माननीय +ी मनोमोहन दास, ाियक सद4 के सम8। BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM AND HON’BLE SHRI MANOMOHAN DAS, JUDICIAL MEMBER M.A. No.122/Chn y/2023 [In ITA No.352/Chny/2023] ( िनधा@रण वष@ / Asse ssment Year: 2011-12) & आयकर अपील सं./ ITA No.352/Chn y/2023 ( िनधा@रण वष@ / Asse ssment Year: 2011-12) M/s. Ponni Sugars (Erode) Ltd. ESVIN House, Rajiv Gandhi Salai, Perungudi, Chennai-600 096. बनाम / Vs . DCIT Circle-I(1) LTU, Chennai. थायी लेखा सं. /जीआइ आर सं. /P AN / G I R No . AAC C P -27 79- A (अपीलाथ /Appellant) : ( थ / Respondent) अपीलाथ की ओरसे/ Appellant by : Shri N.R.Suresh (CA) – Ld. AR थ की ओरसे/Respondent by : Shri AR. V. Sreenivasan (Addl. CIT) – Ld. Sr. DR सुनवाई की तारीख/Date of Hearing : 22-09-2023 घोषणा की तारीख /Date of Pronouncement : 22-09-2023 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. By way of this misc. application in MA No.122/Chny/2023, the assessee seeks recall of ex-parte order passed by Tribunal in captioned appeal vide order dated 25-04-2023. The Ld. AR sought invocation of Rule 24 of ITAT Rules, 1963 and submitted that the non- appearance was neither willful nor intentional. The Ld. Sr. DR ITA No.352/Chny/2023 - 2 - submitted that the order has been passed considering the factual matrix of the case. 2. Since the order under consideration is an ex-parte order, concurring with the submissions of Ld. AR, the said order stands recalled and the appeal is restored back to its original status. 3. During hearing, Ld. AR as well as Ld. Sr. DR submitted that only issue under appeal is small disallowance u/s 14A and therefore, the appeal may also be taken up for hearing and disposal. Accordingly, with the consent of both the sides, the appeal was taken up for hearing and disposal. 4. The only point urged by Ld. AR is that an objective satisfaction has not been recorded by Ld. AO before applying Rule 8D. The Ld. Sr. DR supported the impugned order. Having heard rival submissions and upon perusal of case records, the appeal is disposed-off as under. The impugned order has been passed by learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] on 19-01-2023 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s.143(3) of the Act on 26-03-2014. The solitary issue in the appeal is disallowance u/s 14A. 5. Upon perusal of assessment order, it could be seen that Ld. AO has computed disallowance u/s 14A u/r 8D(2)(iii) for Rs.4.14 Lacs, being 0.5% of average investments. The Ld. CIT(A) directed Ld. AO to adjust the same by reducing suo-motu disallowance of Rs.3.76 Lacs already offered by the assessee. Aggrieved, the assessee is in further appeal before us. 6. Upon perusal of para-6 of assessment order, it could be seen that Ld. AO, considering the provisions of Sec. 14A of the Act and having ITA No.352/Chny/2023 - 3 - regard to the accounts of the assessee, has held that expenses were to be disallowed u/r 8D. We find that their in no specific format in which the satisfaction was to be recorded. Therefore, the plea of Ld. AR could not be accepted. The disallowance made by lower authorities is in conformity with the statutory mandate. Therefore, no interference is required in the impugned order. 7. The misc. application stand allowed. The appeal stand dismissed. Both orders pronounced in the open Court on 22 nd September, 2023. Sd/- (MANOMOHAN DAS) ाियक सद4 /JUDICIAL MEMBER Sd/- (MANOJ KUMAR AGGARWAL) लेखा सद4 / ACCOUNTANT MEMBER चे*ई / Chennai; िदनांक / Dated : 22-09-2023 DS आदेश की Tितिलिप अ /ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. यथ /Respondent 3. आयकर आयु3/CIT 4. वभागीय त न ध/DR 5. गाड फाईल/GF