Ashok Leyland Ltd., CHENNAI V. DCIT, CHENNAI

MA 22/CHNY/2017

• Counselvise Citation: [2017] 124 COUNSELVISE.COM (IT) 5371 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 25 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 24-03-2017
• Appeal Filed By: Assessee
• Bench Allotted: D
• Assessment Year: 2008-2009
• Appeal Filed On: 30-01-2017
• Court: TRIBUNAL
• Department Lawyers: SHIVA SRINIVAS
• Assessee Lawyers: R VENKATNARAYANAN
• Keywords: Earning of tax free income
• Section: 2

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH : CHENNAI , ! ' ! # . $ % &' BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI DUVVURU RL REDDY , JUDICIAL MEMBER M.P.NO.22/MDS./2017 ( I.T.A.NO.2915/MDS./2014; ASSESSMENT YEAR : 20 08-09) M/S.ASHOK LEYLAND LTD ., NO.1,SARDAR PATEL ROAD, GUINDY, CHENNAI 600 032. VS. THE DCIT, LARGE TAXPAYER UNIT, CHENNAI-34. [PAN AAACA 4651 L ] ( () / APPELLANT) ( *+() /RESPONDENT) / APPELLANT BY : MR.R.VENKAT NARAYANAN, ADVOCATE /RESPONDENT BY : MR.SHIVA SRINIVAS, JCIT, DR / DATE OF HEARING : 24.03.2017 / DATE OF PRONOUNCEMENT : .03.2017 , / O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER THIS MISCELLANEOUS PETITION IS FILED BY THE ASSESSEE SEEKING FOR RECTIFICATION OF THE ORDER OF THE TRIBUNAL IN I TA NO. 2915/MDS./2014 FOR THE ASSESSMENT YEAR 2008-09 DAT ED 20.10.2016. 2. THE LD.A.R SUBMITTED THAT THE REVENUE CAME IN APPEA L BEFORE THIS TRIBUNAL CHALLENGING THE COMPUTATION OF DISALLOWANCE MP NO.22/MDS//2017 :- 2 -: U/S.14A R.W.RULES 8D(2)(II) OF INCOME TAX RULES, 19 62. THE TRIBUNAL DISPOSED THIS ISSUE BY OBSERVING AS UNDER: - 8.1. AFTER HEARING BOTH THE PARTIES, THIS ISSUE CA ME FOR CONSIDERATION IN ASSESSEE'S OWN CASE FOR ASSESSMENT YEAR 2006- 07 IN ITA NO.2086/MDS./2010, DATED 16.02.2016 WHERE IN IT WAS HELD AS UNDER:- 8.4 WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL ON RECORD AND JUDICIAL DECISIONS CITED . THE LD. AUTHORISED REPRESENTATIVE SUBMITTED THAT THE ASSESSEE IS IN RECEIPT OF EXEMPTED INCOME AND NO EXPENDITURE HAS BEEN INCURRED FOR EARNING INCOME. I N ASSESSEE'S OWN CASE THE CO-ORDINATE BENCH OF TRIBUNAL HAS CONSIDERED 2% DISALLOWANCE OF EXEMPTED INCOME U/S.14A OF THE ACT. THE ACTION OF THE AO APPLYING RULE 8D IS NOT CORRECT AS THE PROVISIONS O F RULE 8D ARE INTRODUCED EFFECTIVE FROM 24.03.2008 AN D APPLICABLE FROM THE ASSESSMENT YEAR 2008-09 AND WE RELY ON THE DECISION OF JURISDICTIONAL HIGH COURT I N THE CASE OF SIMPSON AND CO. LTD. V. DCIT IN TAX CASE (APPEAL) NO.2621 OF 2006 DATED 15.10.2012 AND DIREC T THE AO TO DISALLOW 2% OF EXEMPT INCOME AS DISALLOWANCE U/S.14A OF THE ACT. THIS GROUND OF THE ASSESSEE IS PARTLY ALLOWED. ACCORDINGLY, THIS GROUND IS ALLOWED. ACCORDING TO LD.A.R, THE TRIBUNAL PLACED RELIANCE O N THE EARLIER ORDER OF TRIBUNAL IN ASSESSEE'S OWN CASE IN ITA NO.2086/MDS./2010, DATED 16.02.2016. HOWEVER, WHIL E MENTIONING THE RESULT AT THE END OF THE PARA NO.8.1 , IT IS STATED THAT THE GROUND IS ALLOWED ON THIS ISSUE. ACCORDING TO LD.A.R, IT SHOULD BE AS PARTLY ALLOWED AND PRAYED FOR RECTIF ICATION OF THE SAME. MP NO.22/MDS//2017 :- 3 -: 3. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL ON RECORD. ADMITTEDLY, THE TRIBUNAL PLACED RELIANCE ON THE EARLIER ORDER OF TRIBUNAL IN ASSESSEE'S OWN CASE IN ITA NO.2086/MDS./2010 CITED SUPRA WHEREIN THE TRIBUNAL ALLOWED THE ASSESSEES APPEAL PARTLY ALLOWED. HENCE, WHEN THE SAME ISSUE IS DECIDED BY THE TRIBUNAL, THE RESULT IN THE REVEN UES APPEAL ON THIS ISSUE SHOULD BE PARTLY ALLOWED. ACCORDINGLY, WE RECTIFY THE SAME AS PARTLY ALLOWED INSTEAD ALLOWED. FURTHER , NO OTHER CHANGES IN THE ORDER OF TRIBUNAL IN ITA NO. 2915/MD S./2014 DATED 20.10.2016 4. IN THE RESULT, THE MISCELLANEOUS PETITION FILED BY THE ASSESSEE IS ALLOWED. 5. ORDER PRONOUNCED IN THE OPEN COURT AFTER CONCLU SION OF HEARING ON 24 TH MARCH,2017 AT CHENNAI. SD/ - SD/ - . ! '# $ ( DUVVURU RL REDDY ) ) % / JUDICIAL MEMBER ( ) (CHANDRA POOJARI) / ACCOUNTANT MEMBER %& / CHENNAI '() / DATED: 24 TH MARCH, 2017 K S SUNDARAM (*++,-.+/. / COPY TO: + 1 . / APPELLANT 3. + 0+$ / CIT(A) 5. .12+,,3 / DR 2. / RESPONDENT 4. + 0 / CIT 6. 2#4+5 / GF