Rasna Pvt. Ltd., Ahmedabad V. The Dy.CIT, Circle-3(1)(2), Ahmedabad

MA 135/AHD/2021

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 3822 (ITAT-AHMEDABAD)
• Duration Of Justice: 9 month(s) 7 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 23-06-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Appeal Filed On: 16-09-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Earning of tax free income
• Section: 14A; 115JB

Judgement Text

, ‘B’ । IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD BEFORE SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMEBR & SHRI MAHAVIR PRASAD, JUDICIAL MEMEBR MISCELLANEOUS APPLICATION No. 135/Ahd/2021 (in ITA No. 1788/Ahd/2018) ( Assess ment Ye ar : 2015-16) Ra sn a Pv t. Lt d. Op p. Se ar s To we r, Gu lba i Tek ra , Pa nc hva ti , Ah me da bad / V s . Th e Dy .C IT Cir cl e- 3( 1)( 2) , Ah me da bad / /P A N / G IR N o . : A A A C W 4 4 0 8 M (अप Appellant) . . ( / Respondent) अप /Appellant by : Shri P. F. Jain, A.R. / Respondent by : Shri Urjit Shah, Sr. D.R. D a t e o f H e a r i n g 10/06/2022 !"# /D a t e o f P r o n o u n c e m e n t 24/06/2022 ORDER PER MAHAVIR PRASAD, JM: This miscellaneous application has been filed by the assessee under s.254(2) of the Act against the Tribunal order dated 17.08.2021 to recall the impugned order. MA No. 135/Ahd/2021 [Rasna Pvt. Ltd. vs. DCIT] AY 2015-16 - 2 - 2. This Miscellaneous Application filed by the assessee wherein it is held that: “This Misc Application is made in respect of order of Hon'ble I.T.A.T. Bench "B" pronounced on 17-08-2021 partly allowing the appeal of the appellant received on 06-09-2021. It is respectfully submitted that following errors which are apparent have crept in to the order, the appellant has raised additional ground by letter dated 20-09-2018 submitted to the registry on the same date with copies of additional ground. The additional ground raised is reproduced for the sake of ready reference and kind perusal. "GROUND: 1. The assessing officer has erred in law and on facts in increasing book profit by adding disallowance u/s. 14A of Rs. In increasing book profit by adding disallowance u/s. 14A of Rs. 30,13,733/- and revising book profit as per assessee of Rs. 21,56,03,267/- resulting into erroneous increase in Tax Payable. 2. On the facts no such addition of disallowance u/s. 14A ought to have been made. PRAYER: The above grounds are respectfully prayed to be admitted as the facts are already on record." There being similar issues of disallowance u/s. 14A common order for AY 2013- 14, 2014-15 and 2015-16 with ITA No. 1528/Ahd/ 2017, 2870/Ahd/2017, 1788/Ahd/2018 respectively has been pronounced on 17-08-2021. The above additional ground was there for all the years but for AY 2015-16, it has remained to be decided. In para 31, page 15,the Hon'ble ITAT has adjudicated additional ground for AY 2013-14, 2014-15 holding as under: "The Special Bench of the Delhi ITAT in the case of ACIT vs. Vineet Investment Pvt. Ltd. (2017) 165 ITD 27/ 82 taxmann.com has held that expenses incurred to earn exempt income not to be added for computing book profit u/s. 115JB of the Act. Therefore, we allow these additional grounds of appeals of the assessee." But while deciding the above ground, the similar additional ground for AY 2015-16 as mentioned above remained to be decided resulting into apparent mistake. MA No. 135/Ahd/2021 [Rasna Pvt. Ltd. vs. DCIT] AY 2015-16 - 3 - In view of above facts mentioned, it is, therefore respectfully prayed that these additional grounds of AY 2015-16 may kindly be adjudicated accordingly.” 3. We have heard both the parties and gone through the tribunal order and M.A. filed on behalf of the assessee. However, inadvertently additional ground relating to Section 14A of the Act for A.Y. 2015-16 remained unadjudicated, therefore, we rectify the omission and para nos. 31 to 34 to be read as under: Additional ground of appeal for AY 2013-14 vide ITA No. 1528/Ahd/2017, A.Y. 2014-15 vide ITA No. 2870/Ahd/2017 and A.Y. 2015-16 vide ITA No. 1788/Ahd/2018 31. These three identical grounds of appeals for assessment year 2013-14 2014-15 & 2015-16 has been raised on the issue of adding the disallowance made u/s. 14A of Income Tax Act in the book profit while computing book profit. The ld. counsel on behalf of the assessee contended that issue is squarely covered in favour of the assessee in view of the decision of ITAT Special Bench Delhi in the case of ACIT vs. Vineet Investment Ltd. (2017) 165 ITD 27/82 taxmann.com. The ld. Departmental Representative is fair enough not to controvert the aforesaid contention of the ld. counsel. 32. Heard both the sides and perused the material available on record. 33. The Special Bench of the Delhi ITAT in the case of ACIT vs. Vineet Investment Pvt. Ltd. (2017) 165 ITD 27/82 taxmann.com has held that expenses incurred to earn exempt income not to be added for computing book profit u/s. 115JB of the Act. Therefore, we allow these additional grounds in following three appeals; ITA No. MA No. 135/Ahd/2021 [Rasna Pvt. Ltd. vs. DCIT] AY 2015-16 - 4 - 1528/Ahd/2017, ITA No. 2870/Ahd/2017 and ITA No. 1788/Ahd/2018. 4. In the result, the miscellaneous applications filed by the assessee is allowed. Sd/- Sd/- ( ANNAP UR NA GUP TA) (MAHAVIR PRASAD) ACC OUNTANT MEMB ER JUDICIAL MEMBER Ahmedabad: Dated 24/06/2022 True Copy S.K.SINHA ेश ! " #े" / Copy of Order Forwarded to:- $ / Revenue 2 द / Assessee 3 ( )* + / Concerned CIT 4 + - अप / CIT (A) . / 0 1 2 2 )*3 अप अ)* #3 अ45द ( द / DR, ITAT, Ahmedabad 6 1 78 9 / Guard file. By order/ द श 3 उप/ 4 प अप अ)* #3 अ45द ( द । This Order pronounced in Open Court on 24/06/2022