M/s. Lokmangal Sugar Ethenol And Co-Generation Industries Ltd, Solapur V. Joint Commissioner of Income-tax, (OSD), Circle -1, Solapur

MA 372/PUN/2022

AI Insights

The case involves M/s. Lokmangal Sugar & Ethanol Co-Generation Industries Ltd., which filed miscellaneous applications against the Income Tax Appellate Tribunal's earlier orders concerning disallowances made under section 14A read with Rule 8D of the Income Tax Act, 1961, for the assessment years 2013-2014 and 2014-2015. The Tribunal's earlier decisions had not addressed the factual position that the assessee did not derive any exempt income in 2013-2014 and had only a minimal exempt income in 2014-2015. The Tribunal rectified its earlier orders based on these facts, leading to the acceptance of the assessee's applications.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137044 (ITAT-PUNE)
• Duration Of Justice: 4 month(s) 21 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 26-04-2023
• Appeal Filed By: Assessee
• Order Result: AllowedAllowed
• Bench Allotted: A
• Next Hearing Date: 20-04-2023
• Assessment Year: 2013-2014
• Appeal Filed On: 05-12-2022
• Other Referred Cases: ACIT vs. Saurashtra Kutch Stock Exchange Ltd., CIT vs. Reliance Telecom Ltd.
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Earning of tax free income; Rule 8D

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A” : PUNE BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER M.A.Nos.372 & 373/PUN./2022 Arising out of ITA Nos.1035 & 1036/PUN./2018 with Cross Objections in C.O.Nos.07 and 08/PUN./2022 Assessment Years - 2013-2014 & 2014-2015 M/s. Lokmangal Sugar & Ethanol Co-Generation Industries Ltd., 8536-A/11, Lokmangal House, Murarji Peth, Near Old Poona Naka, Solapur – 413 001. PAN AAACL9193J vs. The Jt. CIT (OSD), Circle – 1, Solapur. Applicant Respondent आदेश / ORDER PER SATBEER SINGH GODARA, JM : These assessee’s twin miscellaneous applications filed u/s. 254(2) of the Income Tax Act, 1961 [in short “the Act”] seek to recall tribunal’s common consolidated order dated 30.06.2022 dismissing the Revenue’s former corresponding appeal ITA.No.1035/PUN./ 2018 and partly allowing latter appeal ITA.No.1036/PUN./2018 thereby holding that the taxpayer’s cross-objection C.O.Nos.07 & 08/PUN./2022 as not pressed, respectively. Assessee by : Shri Krishana Gujarathi Revenue by : Shri M.G. Jasnani Date of hearing : 21.04.2023 Date of pronouncement : 27.04.2023 2 M.A.Nos.372 & 373/PUN./2022 Heard both the parties. Case files perused. 2. We find during the course of hearing from a perusal of our common order in issue dated 30.06.2022 that the assessee’s first and foremost legal plea in former assessment year 2013-14 involving Revenue’s appeal ITA.No.1035/PUN./2018 and it’s cross- objection no.07/PUN./2022 was that it had not derived any exempt income which could attract sec.14A read with Rule 8D disallowance. The Revenue could not dispute the said clinching factual position. That being the case, we are of the considered opinion in light of ACIT vs. Saurashtra Kutch Stock Exchange Ltd., [2008] 305 ITR 227 (SC) and CIT vs. Reliance Telecom Ltd., [2021] 133 taxmann.com 41 (SC); that our order rejecting the assessee’s former cross objection no.07/PUN./2022 as not pressed suffers from an apparent mistake on record. The same is accordingly rectified. We thus clarify that our final conclusion in assessment year 2013-2014 shall read that the Revenue’s former appeal ITA.No.1035/PUN./2018 is dismissed and the assessee’s cross objection no.07/PUN./2022 is allowed in very terms. Ordered accordingly. 3. Next comes assessment year 2014-15 involving Revenue’s appeal ITA.No.1036/PUN/2018 along with assessee’s cross objection no.08/PUN./2022. Suffice to say, we had noted the assessee to have derived exempt income of Rs.12,000/- only. It was accordingly submitted before us at the assessee’s behest that the impugned corresponding disallowance u/sec.14A read with Rule 8D 3 M.A.Nos.372 & 373/PUN./2022 could not exceed the same. We note that we had partly accepted the Revenue’s appeal and again dismissed the assessee’s above cross objection as not pressed. The same in our considered opinion also results in an apparent mistake on record wherein we ought to have dismissed the Revenue’s appeal ITA.No.1036/PUN./2018 raising it’s sole substantive ground seeking to revive the entire disallowance of Rs.2,44,30,742/- made in assessment order dated 23.12.2011 as restricted to Rs.27,52,966/-, had to be rejected, and the assessee’s cross objection no.08/PUN./ 2022 deserved to be accepted in very terms. We order accordingly. The Revenue’s instant latter appeal ITA.No.1036/PUN./2018 is dismissed and assessee’s cross objection no.08/PUN./2022 seeking to restrict the impugned disallowance to the extent of exempt income only is accepted. Ordered accordingly. 4. These assessee’s twin miscellaneous application nos.372 & 373/PUN./2022 are accepted in above terms. A copy of this common order be placed in the respective case files. Order pronounced in the open Court on this the 27 th day of April, 2023. Sd/- Sd/- (DR.DIPAK P.RIPOTE) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Pune; Dated : 27 th April, 2023. VBP 4 M.A.Nos.372 & 373/PUN./2022 Copy of the Order forwarded to : 1. The Appellant. 2. The Respondent. 3. The CIT(A)-7, Pune. 4. The Pr. CIT-6, Pune. 5. DR, ITAT, “A” Bench, Pune. 6. Guard File. BY ORDER // True Copy // Senior Private Secretary ITAT, Pune.