CHAKIAT AGENCIES PRIVATE LIMITED, CHENNAI V. ACIT COMPANY CIRCLE 1 (3), CHENNAI

MA 134/CHNY/2019

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 3240 (ITAT-CHENNAI)
• Duration Of Justice: 3 year(s) 1 month(s) 25 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 11-08-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 11-08-2022
• Assessment Year: 2009-2010
• Appeal Filed On: 16-06-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

आयकर अपील य अ धकरण, ‘डी’ यायपीठ, चे नई IN THE INCOME TAX APPELLATE TRIBUNAL , ‘D’ BENCH, CHENNAI ी वी. द ु गा राव, या यक सद य एवं ी जी. मंज ु नाथ, लेखा सद य के सम$ BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER M is c. Appl i ca ti on No s. 1 3 4 to 1 3 6/ C hn y/ 2 0 1 9 [ I n I T A N o s . 1 5 5 0 , 1 5 5 1 & 1 5 5 2 / C h n y / 2 0 1 8 ] ( नधा रणवष / A s se s sm en t Yea r s : 2 0 09 - 1 0, 2 01 1- 1 2 & 2 0 1 4- 1 5 ) M/s. Chakiat Agencies Pvt.Ltd. 40, Rajaji Salai, 3 rd floor, Chennai-600 001. V s The Asst. Commissioner of Income Tax, Company Circle-1(2), Chennai. P AN: A AB C C 6 2 8 1 F ( ाथ क /Petitioner) ( यथ /Respondent) ाथ कक ओरसे/ Petitioner by : Mr. P.M.Veeramani, C.A यथ क ओरसे/Respondentby : Mr. Sajit Kumar, JCIT स ु नवाईक तार ख/D a t e o f h e a r i n g : 12.08.2022 घोषणाक तार ख /D a t e o f P r o n o u n c e m e n t : 12.08.2022 आदेश / O R D E R PER G.MANJUNATHA, AM: The present Miscellaneous Petitions are filed by the assessee against common order passed by this Tribunal dated 27.03.2019 in ITA Nos.1550,1551 & 1552/Chny/2018 relevant to the assessment years 2009-10, 2011-12 & 2014-15. 2. We have heard both the parties and considered relevant contents of the Misc. Applications filed by the assessee for the assessment years 2009-10, 2011-12 and 2014-15 and we find that the assessee has agitated the order of the Tribunal insofar as the issue of disallowance u/s.14A of the Act read with Rule 2 M.A. Nos.134 to 136/Chny/2019 8D of I.T.Rules,1962, more particularly, on the issue of disallowance of interest expenses in light of availability of own funds / interest free funds. 3. The learned A.R. for the assessee referring to order of the Tribunal submitted that the assessee has filed various details, including financial statements along with cash flow statement explaining availability of own funds. Further, the learned CIT(A) has recorded categorical finding in his order that except for the assessment year 2007-08, for remaining assessment years, the assessee is having sufficient own funds in the form of profit declared for the relevant assessment years. Although, the assessee does not have sufficient own funds for the assessment year 2007-08, but disallowances contemplated u/s.14A cannot be made for the impugned assessment years, when the assessee has made already disallowance of interest expenses for that assessment years. 4. We find that although, the assessee has filed various details with respect to availability of own funds /interest free funds, but the Tribunal has given general finding in light of 3 M.A. Nos.134 to 136/Chny/2019 findings of the learned CIT(A) that there is no error in the findings given by the learned CIT(A) on the issue of availability of own funds without any reference as to how such finding is based on material evidence filed by the assessee. Further, the assessee has made out prima-facie case for the impugned assessment years that there is no inflow of fresh funds for investment activity and thus, question of disallowance of interest expenses does not arise. But, the Tribunal has failed to consider arguments advanced by the learned A.R. for the assessee in light of various evidences. Therefore, we are of the considered view that there is prima-facie mistake in the order of the Tribunal in not adjudicating specific issues raised by the assessee on the issue of disallowance of interest expenses u/s.14A read with Rule 8D I.T Rules, 1962, and said mistake constitutes mistake apparent on record which can be rectified u/s.254(2) of the Income Tax Act, 1961. Hence, we recall the order dated 27.03.2019 for the concerned assessment years and we direct the Registry to post the appeals for hearing in due course and inform both the parties. 4 M.A. Nos.134 to 136/Chny/2019 5. In the result, Misc. Applications filed by the assessee are allowed. Order pronounced in the open court on 12 th August, 2022 Sd/- Sd/- ( वी. द ु गा राव) (जी. मंज ु नाथ) (V.Durga Rao) (G.Manjunatha) या यक सद य /Judicial Member लेखा सद य / Accountant Member चे नई/Chennai, $दनांक/Dated 12 th August, 2022 DS आदेश क त(ल)प अ,े)षत/Copy to: 1. Appellant 2. Respondent 3. आयकर आय ु -त (अपील)/CIT(A) 4. आयकर आय ु -त/CIT 5. )वभागीय त न2ध/DR 6. गाड फाईल/GF.