SUNDHARAMS PVT. LTD., CHENNAI V. ACIT, CORPORATE CIRCLE-6(2), CHENNAI

MA 215/CHNY/2022

AI Insights

The case involves M/s. Sundharams Pvt. Limited, the appellant, who challenged the revisionary order concerning the computation of disallowance under section 14A of the Income Tax Act, 1961. The revisionary authority had directed the Assessing Officer to consider current investments while computing disallowances, which the Tribunal confirmed. The appellant sought rectification of the Tribunal's earlier order, arguing that only those investments from which exempt income was earned should be considered for disallowance under Rule 8D. However, the Tribunal found no mistake in the original order and dismissed the application.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134402 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 8 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 06-07-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 06-07-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 28-12-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Revision of order
• Section: 263

Judgement Text

आयकर अपीलीय अिधकरण “सी” ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, CHENNAI माननीय +ी महावीर िसंह, उपा01 एवं माननीय +ी मनोज कु मार अ6वाल ,लेखा सद9 के सम1। BEFORE HON’BLE SHRI MAHAVIR SINGH, VICE PRESIDENT AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM M. A. No.215/Chny/2022 [In ITA No.226/Chny/2022] (िनधाCरण वषC / Assessment Year: 2017-18) M/s. Sundharams Pvt. Limited No.3, Smith Road (Off Mount Road) Chennai -600 002. बनाम/ V s . ACIT Corporate Circle-6(2) Chennai. थायीलेखासं./जीआइआरसं./PAN/GIR No. A AAC S - 4949 -P (अपीलाथ /Appellant) : ( थ / Respondent) अपीलाथ कीओरसे/ Appellant by : Shri Vikram Vijayaraghavan (Advocate ) – Ld.AR थ कीओरसे/Respondent by : Shri AR.V.Sreenivasan (Addl.CIT) – Ld. DR सुनवाईकीतारीख/Date of Hearing : 07-07-2023 घोषणाकीतारीख/Date of Pronouncement : 07-07-2023 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. By way of this Miscellaneous Application u/s. 254(2), the assessee seeks certain rectification in Tribunal order passed in captioned appeal on 05-12-2022. 2. The Ld. AR submitted that the assessee had challenged the revision of the order wherein revisionary authority had directed Ld. AO to consider current investment also while computing disallowance u/s 14A. The Tribunal confirmed the revision of the order. The Ld. AR submitted 2 M.A. No.215/Chny/2022 that even in respect of current investments, only such investments from which exempt income has been earned, should be considered for disallowance under Rule 8D. The Ld. AR, accordingly, seeks modification in the order which has been opposed by Ld. Sr. DR. 3. We find that in para-4 of the order, the bench has observed that AO had failed to consider the current investments while making computations. To correct this error, Ld. Pr. CIT invoked powers u/s 263 which could not be faulted with for the reason that computations were not made by Ld. AO as per prescribed formula. Accordingly, the revision of the order was upheld. At the same time, it was held that nothing in the order shall construe to have any expression on the merits of the case which shall be considered by Ld. AO at the time of revisional proceedings. Accordingly, the appeal was dismissed. 4. From the aforesaid adjudication, it could be seen that the issue, on merits, has been kept open and the revision of the order has been upheld. Therefore, the bench does not see any mistake apparent from record in terms of Sec. 254(2). No interference is called for in the order. 5. The application stand dismissed. Order pronounced on 7 th July, 2023. Sd/- (MAHAVIR SINGH) उपा01 /VICE PRESIDENT Sd/- (MANOJ KUMAR AGGARWAL) लेखासद9 /ACCOUNTANT MEMBER चे2ई Chennai; िदनांक Dated : 07-07-2023 DS आदेश की Wितिलिप अ6ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. यथ /Respondent 3. आयकर आय ु त/CIT 4. वभागीय त न ध/DR 5. गाड फाईल/GF