The Lakshmi Vilas Bank Limited, Karur V. ACIT, Trichy

MA 137/CHNY/2014

• Counselvise Citation: [2014] 124 COUNSELVISE.COM (IT) 2264 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 17 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 22-09-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2005-2006
• Appeal Filed On: 04-08-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S DASGUPTA
• Assessee Lawyers: G SEETHARAMAN
• Keywords: Rectification of order; Earning of tax free income

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : CHENNAI BEFORE DR. O.K. NARAYANAN, VICE PRESIDENT & SHRI VIKAS AWASTHY, JUDICIAL MEMBER M.P. NO S . 137 & 138 /MDS/201 4 ( IN ITA NOS. 940 & 938/MDS/2013 ) ASSESSMENT YEARS : 2005-06 & 2003-04 THE LAKSHMI VILAS BANK LIMITED, SALEM ROAD, KATHAPARAI, KARUR [PAN:AAACT 4291 P] (PETITIONER) VS THE ASST. COMMISSIONER OF INCOME TAX, CIRCLE-I(1), TRICHY (RESPONDENT) PETITIONER BY : SHRI G.SEETHARAMAN , CA RESPONDENT BY : SHRI S.DAS GUPTA , J CIT DATE OF HEARING : 12-09-2014 DATE OF PRONOUNCEMENT : 22-09-2014 O R D E R PER VIKAS AWASTHY, J.M: THE MISCELLANEOUS PETITIONS HAVE BEEN FILED BY THE ASSESSEE SEEKING RECTIFICATION OF MISTAKE IN THE OR DER OF TRIBUNAL DT.30-04-2014. THE LD.AR APPEARING ON BEHALF OF TH E ASSESSEE SUBMITTED THAT WHILE DECIDING THE GROUND RELATING T O DIS-ALLOWANCE U/S.14A, THE TRIBUNAL IN PARA NO.9 AT PAGE NO.13 HA S WRONGLY M.P. NOS. 137 & 138/MDS/14 :- 2 -: MENTIONED THAT THE ASSESSING OFFICER HAS DIS-ALLOWE D 2% OF INCOME U/S.14A. INFACT, THE ASSESSING OFFICER HAS DIS-ALLOWED 10% OF TAX FREE INCOME U/S.14A. THE LD.AR FURTHER CONTENDED THAT IN THE GROUNDS OF APPEAL, IT HAS BEEN SPECIFICALLY STATED THAT DIS- ALLOWANCE U/S.14A HAS BEEN MADE AT 10% OF THE TAX F REE INTEREST RECEIPTS AND DIVIDENDS. 2. SHRI DAS GUPTA, APPEARING ON BEHALF OF THE REVEN UE CONTROVERTING THE SUBMISSIONS OF THE LD.AR STATED T HAT THE CIT(APPEALS) IN HIS ORDER HAS RESTRICTED THE DIS-AL LOWANCE U/S.14A TO THE EXTENT OF 2% OF SUCH INCOME AND THE TRIBUNAL HAS UPHELD THE SAME. 3. WE HAVE HEARD THE SUBMISSIONS MADE BY THE REPRESENTATIVES OF BOTH THE SIDES. THE LD.AR OF TH E ASSESSEE HAS POINTED OUT THAT IN THE ORDER OF TRIBUNAL DT.30-04- 2014, THE DIS- ALLOWANCE U/S.14A MADE BY ASSESSING OFFICER HAS BEE N WRONGLY MENTIONED AS 2% INSTEAD OF 10%. THE CIT(APPEALS) IN HIS ORDER IN PARA NO.17 AT PAGE NO.26 HAS CATEGORICALLY STATE D THAT THE ASSESSING OFFICER HAS DIS-ALLOWED 2% OF THE EXEMPTE D INCOME U/S.14A R.W. RULE 8D. M.P. NOS. 137 & 138/MDS/14 :- 3 -: A PERUSAL OF THE ASSESSMENT ORDER SHOWS THAT IN PAR A NO.9 AT PAGE NO.11, THE ASSESSING OFFICER HAS ESTIMATED DIS-ALLOWANCE U/S.14A @ 10% OF THE GROSS RECEIPTS OF TAX FREE INT EREST. THERE IS AN APPARENT FACTUAL MISTAKE IN THE ORDER IN RECORDI NG THE RATE AT WHICH ASSESSING OFFICER HAS MADE DIS-ALLOWANCE. AC CORDINGLY, THE FIGURE 2% IS SUBSTITUTED WITH 10%. AFTER THE N ECESSARY CORRECTIONS, THE 8 TH AND 9 TH LINE OF PARA NO.9 AT PAGE NO.13 OF THE ORDER ARE SUBSTITUTED AND NOW, WILL BE READ AS UNDE R: THE ASSESSING OFFICER DIS-ALLOWED 10% OF SUCH INCO ME U/S.14A. THE CIT(APPEALS) CONFIRMED THE DIS-ALLOWANCE AT 2% OF EXEMPT INCOME HOWEVER, WITH THIS CORRECTION, THERE WILL BE NO CHA NGE IN THE OUTCOME OF THE ORIGINAL ORDER OF THE TRIBUNAL. ORDER PRONOUNCED ON MONDAY, THE 22 ND SEPTEMBER, 2014 AT CHENNAI. SD/- SD/- (DR. O.K. NARAYANAN) (VIK AS AWASTHY) VICE PRESIDENT JUDICIAL MEMBER DATED: 22 ND SEPTEMBER, 2014 TNMM COPY TO: (1) PETITIONER (4) CIT(A) (2) RESPONDENT (5) D.R. (3) CIT (6) G.F.