M/s. TVS Logistics Services Ltd., Madurai V. DCIT, Madurai

MA 209/CHNY/2016

• Counselvise Citation: [2016] 124 COUNSELVISE.COM (IT) 4916 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 27 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 23-11-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 11-11-2016
• Assessment Year: 2011-2012
• Appeal Filed On: 27-07-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: A V SREEKANTH
• Assessee Lawyers: M VISWANATHAN
• Section: 14A

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI ... , . !'# ! , % !& BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER M.P. NO.209/MDS/2016 (IN I.T.A. NO.458/MDS/2016) ' (' / ASSESSMENT YEAR : 2011-12 M/S TVS LOGISTICS SERVICES LTD., 7-B, TVS BUILDING, WEST VELI STREET, MADURAI 625 001. PAN : AACCT 1412 E V. THE DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 2, MADURAI. (*+' /PETITIONER) (*,+-/ RESPONDENT) *+' / 0 /PETITIONER BY : SHRI M. VISWANATHAN, CA *,+- / 0 / RESPONDENT BY : SHRI A.V. SREEKANTH, JCIT 1 / 2% / DATE OF HEARING : 11.11.2016 3'( / 2% / DATE OF PRONOUNCEMENT : 23.11.2016 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THE ASSESSEE HAS FILED THE PRESENT MISCELLANEOUS PETITION ON THE GROUND THAT THE ISSUE RAISED BY THE ASSESSEE WITH REGARD TO INVESTMENT MADE IN ASSOCIATE ENTERPRISE, OUTSIDE TH E COUNTRY, WAS TAXABLE IN INDIA AND THE SAME CANNOT BE SUBJECT MAT TER OF DISALLOWANCE UNDER SECTION 14A OF THE INCOME-TAX AC T, 1961 (IN 2 M.P. NO.209/MDS/16 SHORT 'THE ACT') READ WITH RULE 8D(2) OF THE INCOME -TAX RULES, 1962, WAS NOT DISCUSSED BY THIS TRIBUNAL IN ITS ORDER DAT ED 09.06.2016 . 2. SHRI M. VISWANATHAN, THE LD. REPRESENTATIVE FOR THE ASSESSEE, SUBMITTED THAT THIS TRIBUNAL RECORDED THE SUBMISSION OF THE ASSESSEE THAT THE MAJOR INVESTMENT MADE IN THE ASSOCIATE ENTERPRISE OUTSIDE THE COUNTRY AND THE INCOME GENER ATED OUT OF THE INVESTMENT IS LIABLE FOR TAXATION AND THE SAME CANN OT BE SUBJECT MATTER OF SECTION 14A OF THE ACT. HOWEVER, ACCORDI NG TO THE LD. REPRESENTATIVE, IT WAS NOT DISCUSSED IN THE ORDER O F THIS TRIBUNAL THEREFORE, THERE IS AN ERROR IN THE ORDER WHICH NEE DS TO BE RECTIFIED. 3. WE HAVE HEARD SHRI A.V. SREEKANTH, THE LD. DEPAR TMENTAL REPRESENTATIVE ALSO. THE ASSESSEE SPECIFICALLY CLA IMS BEFORE THIS TRIBUNAL THAT MAJOR INVESTMENT WAS MADE IN THE ASSO CIATE ENTERPRISE, OUTSIDE THE COUNTRY. AFTER EXAMINING T HIS SUBMISSION OF THE ASSESSEE, THIS TRIBUNAL FOUND THAT THE ASSESSEE HAS NOT MAINTAINED ANY SEPARATE BOOKS OF ACCOUNT FOR THE IN VESTMENT MADE. THE DETAILS OF THE INVESTMENT MADE OUTSIDE THE COUN TRY ARE ALSO NOT AVAILABLE ON RECORD. IF ANY INVESTMENT IS MADE OUT SIDE THE COUNTRY AND THE INCOME GENERATED OUT OF SUCH INVESTMENT IS TAXABLE, THEREFORE, NATURALLY THE PROVISIONS OF SECTION 14A OF THE ACT IS NOT APPLICABLE. HOWEVER, IT IS FOR THE ASSESSEE TO SUB STANTIATE THE CLAIM 3 M.P. NO.209/MDS/16 THAT INCOME GENERATED OUT OF INVESTMENT MADE OUTSID E THE COUNTRY IS NOT EXEMPT FROM TAXATION. IN THE ABSENCE OF ANY DETAILS OF INVESTMENT MADE IN THE ASSOCIATE ENTERPRISE, OUTSID E THE COUNTRY, THIS TRIBUNAL FINDS THAT THE CLAIM OF THE ASSESSEE WAS NOT SUBSTANTIATED. THEREFORE, THIS TRIBUNAL FOUND THAT THE DISALLOWANCE HAS TO BE MADE UNDER RULE 8D(2) OF THE INCOME-TAX R ULES, 1962. EVEN NOW, THE ASSESSEE HAS NOT PRODUCED ANY DETAILS REGARDING THE INVESTMENT WHICH RESULTED THE TAXABLE INCOME. THER EFORE, THIS TRIBUNAL DO NOT FIND ANY MERIT IN THE MISCELLANEOUS PETITION FILED BY THE ASSESSEE. 4. IN THE RESULT, THE MISCELLANEOUS PETITION FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE COURT ON 23 RD NOVEMBER, 2016 AT CHENNAI. SD/- SD/- (. !'# ! ) ( ... ) (A. MOHAN ALANKAMONY) (N.R.S. GANESAN) % / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 5 /DATED, THE 23 RD NOVEMBER, 2016. KRI. / *267 87(2 /COPY TO: 1. *+' / PETITIONER 2. *,+- /RESPONDENT 3. 1 92 () /CIT(A) 4. 1 92 /CIT 5. 7: *2 /DR 6. ' ; /GF.