The DCIT, Central Circle-1(2), Ahmedabad V. M/s. Plastene India Ltd., Ahmedabad

MA 265/AHD/2018

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 9657 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 2 month(s) 30 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 04-01-2021
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 05-10-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S S SHUKLA
• Assessee Lawyers: HARDIK MANIAR
• Keywords: Earning of tax free income; Rule 8D

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD ( THROUGH VIRTUAL COURT ) BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & MAHAVIR PRASAD , JUDICIAL MEMBER 1. MA NO.265/AHD/2018 A.Y. 2016 ( IN ITA NO.2838/AHD/2016 AY 2009-10 ) 2. ./ITA NO.2838/AHD/2016 ( / ASSESSMENT YEAR : 2009-10) DY.CIT CENTRAL CIRCLE-1(2) AHMEDABAD / VS. M/S.PLASTENE INDIA LTD. 13, NAVBHARAT SOCIETY OPP. PANCHSHIL BUS STOP USMANPURA AHMEDABAD ./ ./ PAN/GIR NO. : AAACO 3087 C ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI S.S. SHUKLA, SR.DR / RESPONDENT BY : SHRI HARDIK MANIAR, AR / DATE OF HEARING 04/12/2020 !'# / DATE OF PRONOUNCEMENT 04/01/2021 / O R D E R PER PRADIP KUMAR KEDIA, AM: THE CAPTIONED MISCELLANEOUS APPLICATION HAS BEEN F ILED AT THE INSTANCE OF THE REVENUE ARISING FROM THE APPELLATE ORDER OF THE TRIBUNAL PASSED IN ITA NO.2838/AHD/2016 FOR ASSESSMENT YEAR ASSESSMENT YEAR (AY) 2009-10 DATED 02/04/2018. 2. AS PER THE MISCELLANEOUS APPLICATION, IT WAS SUBMITTED ON BEHALF OF THE REVENUE THAT IN THE LIGHT OF REVENUE OBJECTION, THE TRIBUNAL OUGHT MA NO.265/AHD/2018 & ITA NO.2838/AHD/2016 DCIT VS.M/S.PLASTENE INDIA LTD. ASST .YEAR - 2009-10 - 2 - NOT TO HAVE DISMISSED THE APPEAL IN LIMINE BY TAKING SHELTER OF CBDT CIRCULAR NO.21 OF 2015 DATED 10/12/2015. 3. THE ASSESSEE, ON THE OTHER HAND, OBJECTS TO THE MISCELLANEOUS APPLICATION AND HOWEVER IN THE SAME BREATH, SUBMIT S THAT THE ACTION OF THE ASSESSING OFFICER IN MAKING DISALLOWANCE UNDER S.14A IS NOT SUSTAINABLE IN LAW HAVING REGARD TO THE JUDICIAL PR ECEDENTS. 4. WE HAVE PERUSED THE RECORD. THERE APPEARS TO BE NO SERIOUS OPPOSITION FROM THE ASSESSEE FOR RECALLING THE PLEA IN ITA NO.2838/AHD/2016 ON THE GROUNDS OF INAPPLICABILITY OF CBDT CIRCULAR(SUPRA). 5. RESULTANTLY, MISCELLANEOUS APPLICATION NO.265/AH D/2016 FOR AY 2009-10 IS ALLOWED AND IS RECALLED AND RE-FIXED FOR HEARING TODAY WITH THE CONSENT OF THE PARTIES. 6. IN THE RESULT, MISCELLANEOUS APPLICATION FILED B Y THE REVENUE IS ALLOWED. 7. WE SHALL NOW ALSO DISPOSE OF THE SUBSTANTIVE APP EAL IN ITA NO.2838/AHD/2016 FOR CONCERNING AY 2009-10 FOR DISP OSE ON MERITS. MA NO.265/AHD/2018 & ITA NO.2838/AHD/2016 DCIT VS.M/S.PLASTENE INDIA LTD. ASST .YEAR - 2009-10 - 3 - ITA NO.2838/AHD/2016 FOR AY 2009-10 REVENUES APP EAL 8. AS PER THE GROUNDS OF APPEAL, THE REVENUE HAS AS SAILED THE ACTION OF THE CIT(A) IN DELETING ADDITIONS OF RS.8,55,680/ - UNDER S.14A READ WITH RULE 8D OF THE INCOME TAX RULES, 1962. 9. WE FIND ON FACTS THAT THE ASSESSEE HAS NOT EARNE D ANY EXEMPT INCOME IN THE FORM OF DIVIDEND AGAINST WHICH DISALL OWANCES HAVE BEEN CARRIED OUT. IN THE LIGHT OF THE DECISIONS OF HON BLE GUJARAT HIGH COURT IN CIT VS. CORRTECH ENERGY (P.) LTD. REPORTED AT ( 2015) 372 ITR 97 (GUJ.) AND CIT VS. SUZLON ENERGY LTD. IN TAX APPEAL NO.223 OF 2013, NO DISALLOWANCE UNDER S.14A IS PERMISSIBLE IN THE ABSE NCE OF ANY CORRESPONDING EXEMPT INCOME. THUS, WE FIND NO IN FIRMITY IN THE ORDER OF THE CIT(A) IN DELETING THE ADDITIONS ON MERITS. 10. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISS ED. THIS ORDER PRONOUNCED IN OPEN COURT ON 04/0 1/2021 SD/- SD/- (MAHAVIR PRASAD) ( PRADIP KUM AR KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED 04/01/2021 &.., .(.. / T.C. NAIR, SR. PS MA NO.265/AHD/2018 & ITA NO.2838/AHD/2016 DCIT VS.M/S.PLASTENE INDIA LTD. ASST .YEAR - 2009-10 - 4 - !'#' / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. )*+ , / CONCERNED CIT 4. , ( ) / THE CIT(A)-9, AHMEDABAD 5. /01 ((*+ , *+# , ) / DR, ITAT, AHMEDABAD 6. 145 6 / GUARD FILE. / BY ORDER, / ( //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION 22.12.2020 (DICTATION PAD 6-PA GES ATTACHED AT THE END OF THIS APPEAL-FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 22.12.2020 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S.04/01/2021 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 04/02/2021 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER