M/s. Hindusthan Infrastructure Projects and Engineering Pvt Ltd, Bangaluru V. Assistant Commissioner of Income Tax, Circle-3(1)(2), Bengaluru

MA 20/BANG/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 5556 (ITAT-BANGALORE)
• Duration Of Justice: 3 month(s) 3 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 16-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 12-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A RAMESH KUMAR J
• Keywords: Earning of tax free income
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : BANGALORE BEFORE SHRI ARUN KUMAR GARODIA, ACCOUNTANT MEMBER AND SHRI LALIET KUMAR, JUDICIAL MEMBER M.P. NO. 20/BANG/2019 (IN ITA NO. 1247/BANG/2018) ASSESSMENT YEAR : 20 14 - 15 M/S. HINDUSTHAN INFRASTRUCTURE PROJECTS AND ENGINEERING PVT. LTD., JUPITER INNOVATION CENTRE - 54, RICHMOND ROAD, BANGALORE 560 025. PAN: AAACR8981Q VS. THE ACIT, CIRCLE 3 (1) (2), BANGALORE. APPELLANT RESPONDENT ASSESSEE BY : SMT. PRATIBHA R., ADVOCATE REVENUE BY : SHRI A. RAMESH KUMAR, J CIT (DR) DATE OF HEARING : 10 .0 5 .2019 DATE OF PRONOUNCEMENT : 16 .0 5 .2019 O R D E R PER SHRI A.K. GARODIA, ACCOUNTANT MEMBER THIS M.P. IS FILED BY THE ASSESSEE POINTING OUT CERTAIN APPARENT MISTAKES IN THE IMPUGNED TRIBUNAL ORDER DATED 07.09.2018. 2. AS PER THIS M. P., THIS IS CONTENDED THAT THERE IS SOME APPARENT MISTAKE IN PARA 4 OF THE IMPUGNED TRIBUNAL ORDER. 3. IN COURSE OF HEARING, IT WAS SUBMITTED BY THE LEARNED AR OF THE ASSESSEE THAT IN PARA 4 OF THE IMPUGNED TRIBUNAL ORDER, THE TRIBUNAL SAYS THAT THE PROVISIONS OF SECTION 14A CANNOT BE INVOKED AS THERE IS NO EXEMPT INCOME IN THE HANDS OF THE ASSESSEE BUT THEREAFTER, THE TRIBUNAL SAYS THAT THERE' IS NO INFIRMITY OF THE ORDER OF CIT (A) WHO HAS RIGHTLY DELETED M.P. NO. 20/BANG/2019 (IN ITA NO. 1247/BANG/2018) PAGE 2 OF 3 THE ADDITION AND THEREAFTER IN PARA 5, THE TRIBUNAL SAYS THAT THE APPEAL OF THE ASSESSEE IS ALLOWED. HE SUBMITTED THAT PARA 5 IS CORRECT AND THE FIRST LINE OF PARA 4 IS ALSO CORRECT BUT THERE IS APPARENT MISTAKE IN THE SECOND LINE OF PARA 4 AND THIS SHOULD BE RECTIFIED. LEARNED DR ALTHOUGH SUBMITTED THAT THERE IS NO APPARENT MISTAKE IN THE TRIBUNAL ORDER BUT HE COULD NOT DEMONSTRATE AS TO HOW THE SECOND LINE OF PARA 4 IS CORRECT. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FUND THAT IN PARA 2 & 3 OF THE TRIBUNAL ORDER, THIS FACT IS NOTED THAT THE ASSESSEE DID NOT EARN ANY EXEMPT INCOME. THE TRIBUNAL HAS ALSO NOTED ABOUT THE JUDGMENT OF HON'BLE DELHI HIGH COURT RENDERED IN THE CASE OF CHEMIINVEST LTD. VS. CIT, 378 ITR 33 IN WHICH IT WAS HELD THAT IF THERE IS NO EXEMPT INCOME, SECTION 14A CANNOT BE INVOKED. HENCE, FIRST LINE OF PARA 4 AND PARA 5 ARE CORRECT BUT THE SECOND LINE OF PARA 4 CONTAINS APPARENT MISTAKE AND HENCE, WE RECTIFY THE SAME. PARA 4 SHOULD BE READ AS UNDER:- 4. IN THE LIGHT OF THE AFORESAID JUDGMENT, THE PROVISIONS OF SECTION 14A CANNOT BE INVOKED AS THERE IS NO EXEMPT INCOME IN THE HANDS OF THE ASSESSEE. ACCORDINGLY, WE DELETE THE ADDITION MADE BY THE AO AND CONFIRMED BY CIT (A) OF RS. 13,47,60,727/- U/S 14A. 5. IN THE RESULT, THE M. P. FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE. SD/- SD/- (LALIET KUMAR) (ARUN KUMAR GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER BANGALORE, DATED, THE 16 TH MAY, 2019. /MS/ M.P. NO. 20/BANG/2019 (IN ITA NO. 1247/BANG/2018) PAGE 3 OF 3 COPY TO: 1. APPELLANT 4. CIT(A) 2. RESPONDENT 5. DR, ITAT, BANGALORE 3. CIT 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, BANGALORE.