INautix Technologies India Private Limited, CHENNAI V. ACIT, CHENNAI

MA 152/CHNY/2015

• Counselvise Citation: [2016] 124 COUNSELVISE.COM (IT) 4027 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 25 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 19-02-2016
• Appeal Filed By: Assessee
• Bench Allotted: D
• Next Hearing Date: 19-02-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 25-08-2015
• Court: TRIBUNAL
• Department Lawyers: A V SREEKANTHJCIT
• Assessee Lawyers: DR ANITHA SUMANTH
• Section: 14A

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI , ! . ' #$ BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI G.PAVAN KUMAR, JUDICIAL MEMBER M.P.NO.152/MDS./2015 (I.T.A.NO.2277 /MDS./2014 ASSESSMENT YEAR :2008-09) M/S.INAUTIX TECHNOLOGIES INDIA PVT. LTD., 10 TH FLOOR, TIDAL PARK, NO.4,CANAL BANK ROAD, TARAMANI, CHENNAI 600 113. VS. THE ASSISTANT COMMISSIONER OF INCOME TAX, COMPANY CIRCLE II(3), CHENNAI. PAN AAACI 6177 K ( %& / APPELLANT ) ( '(%& / RESPONDENT ) / APPELLANT BY : DR.ANITHA SUMANTH,ADVOCATE / RESPONDENT BY : MR.A.V.SREEKANTH,JCIT, D.R / DATE OF HEARING : 19.02.2016 /DATE OF PRONOUNCEMENT : 19.02.2016 ) / O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER: THIS MISCELLANEOUS APPLICATION FILED BY THE ASSES SEE STATING THAT THE ASSESSEE RAISED GROUND NO.5 IN ITA NO.2277 /MDS./2014 WHICH READS AS FOLLOWS:- M.P NO.152/MDS/2015 2 5. THE LD.CIT(A) ERRED ON FACTS AND IN LAW IN CONFIRMING THE ACTION OF THE AO IN ADDING THE AMOUNT OF ` 37,28,239/- DISALLOWED U/S.14A R.W.R.8D OF THE RULES, WHILE COM PUTING BOOK PROFIT U/S.115JB OF THE ACT. HOWEVER, THE TRIBUNAL HAS NOT ADJUDICATED THIS ISSU E. HENCE, SUITABLE FINDINGS MAY BE GIVEN. THE LD.D.R FAIRLY CONCEDED THE ABOVE GROUND MAY BE ADJUDICATED. ADMITTEDLY, THE ASSESSE E RAISED THE ABOVE GROUND IN ITA NO.2277/MDS./2014. INADVERTENT LY, THE TRIBUNAL FAILED TO ADJUDICATE THIS GROUND, THOUGH ADJUDICATE D THE MAIN GROUND WITH REGARD TO THE APPLICABILITY OF SEC.14A OF THE ACT. IN OUR OPINION, THE ABOVE ISSUE OF INVOKING PROVISIONS OF THE SECTI ON 14A R.W.R.8D OF THE RULES WAS ALREADY ADJUDICATED BY US IN PARA NOS .5 TO 7 VIDE ORDER DATED 19.06.2015 IN ASSESSEES APPEAL AND DISALLOWE D MADE U/S.14A R.W.R.8D CANNOT BE ADDED WHILE COMPUTING BOOK PROFI T U/S.115JB OF THE ACT THAT THE DISALLOWANCE IS ONLY DISALLOWANCE FOR THE PURPOSE OF COMPUTING THE TAXABLE INCOME IN THE NORMAL COURSE. THERE IS NO PROVISION IN THE ACT TO ADD THIS KIND OF DISALLOWAN CES WHILE COMPUTING THE BOOK PROFIT U/S.115JB OF THE ACT AND IT CANNOT CHANGE THE BOOK PROFIT ON THIS COUNT. THEREFORE, EVEN IF THERE IS AN ADDITION IN VIEW OF M.P NO.152/MDS/2015 3 PROVISION U/S.14A R.W.R.8D, THAT CANNOT BE ADDED BA CK TO COMPUTE THE BOOK PROFIT U/S.115JB OF THE ACT. ACCORDINGLY, THI S GROUND OF THE ASSESSEE TO BE CONSIDERED AS ALLOWED. HOWEVER, THE RE IS NO CHANGE IN FINAL RESULT OF APPEAL IN ITA NO.2277/MDS./2014 DATED 26.06.2015. ACCORDINGLY, THIS GROUND RAISED BY THE ASSESSEE IS ALLOWED. 2. IN THE RESULT, THE MISCELLANEOUS APPLICATION FIL ED BY ASSESSEE IS ALLOWED. ORDER PRONOUNCED ON FRIDAY, THE 19 TH OF FEBRUARY,2016 AT CHENNAI. SD/- SD/- ( . ) (G.PAVAN KUMAR) ( ( ! ' ) ) # CHANDRA POOJARI $% JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED THE 19 TH FEBRUARY,2016. K S SUNDARAM. &'(%%)* +% ,+ /COPY TO: % 1. /APPELLANT 2. /RESPONDENT 3. & %& -%# $ /CIT(A) 4. & %& - /CIT 5. +./%))01 /DR 6. /2%3 /GF