M/s. PVP Ventures Ltd., CHENNAI V. DCIT, CHENNAI

MA 50/CHNY/2023

AI Insights

The case involves M/s. PVP Ventures Ltd., which filed a Miscellaneous Application under section 254(2) of the Income Tax Act, 1961, challenging a previous order of the Tribunal related to the assessment year 2010-11. The application sought to address alleged mistakes in the Tribunal's earlier decision, particularly concerning the disallowance under section 14A and other related financial assessments. The Tribunal heard the application but decided to dismiss it as infructuous, referencing an ongoing related case in the Hon'ble Madras High Court, which had admitted the question of law for adjudication.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 130037 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 17 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 13-07-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 13-07-2023
• Assessment Year: 2010-2011
• Appeal Filed On: 26-01-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Principle of natural justice; Earning of tax free income; Question of law
• Section: 14A

Judgement Text

Miscellaneous Application No.50/Chny/2023 (in ITA No.3204/Chny/2016) िनधा रण वष /Assessment Year: 2010-11 M/s.PVP Ventures Ltd., KRM Centre, 9 th Floor, No.2, Harrington Road, Chennai-600 031. v. The Dy. Commissioner of Income Tax, Corporate Circle – 5(2), Chennai. [PAN: AAACS 3101 P] (अपीलाथ /Appellant) ( यथ /Respondent) अपीलाथ क ओर से/ Appellant by : Mr.Shrenik Chordia, CA यथ क ओर से /Respondent by : Mr.Sajit Kumar, JCIT सुनवाई क तारीख/Date of Hearing : 14.07.2023 घोषणा क तारीख /Date of Pronouncement : 14.07.2023 आदेश / O R D E R PER MANJUNATHA.G, ACCOUNTANT MEMBER: The assessee has filed present Miscellaneous Application u/s.254(2) of the Income Tax Act, 1961, against the order of the Tribunal in ITA Nos.3201-3202, 3203-3204 & 3205/Chny/2016, dated 21.09.2022, and pertains to assessment year 2010-11. 2. The assessee has narrated the facts of its case and mistakes stated to be apparent on record from the order of the Tribunal dated 21.09.2022, and relevant contents of Miscellaneous Application filed by the assessee for the AY 2010-11 in ITA Nos.3201-3202, 3203-3204 & 3205/Chny/2016, are reproduced as under: आयकर अपीलीय अिधकरण, ’डी’ यायपीठ, चे ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI ी वी. दुगा राव, माननीय ाियक सद एवं ी मंजूनाथा.जी, माननीय लेखा सद के सम BEFORE SHRI V. DURGA RAO, HON’BLE JUDICIAL MEMBER AND SHRI MANJUNATHA.G, HON’BLE ACCOUNTANT MEMBER MA No.50/Chny/2023 (in ITA No.3204/Chny/2016) :: 2 :: 1. The Petitioner had filed the above Appeal in ITA No 3204/CHNY/2016, challenging the order of the ClT(A)-3, Chennai dated 30.09.2016 on the following grounds before this Hon'ble Tribunal: 1. The order of the Commissioner of Income Tax (Appeals) is contrary to law, facts and circumstances of the case. 2. The Learned Commissioner of Income Tax (Appeals) after holding that the disallowance under section 14A of the Act cannot be made in the absence of exempt income, has erred in directing the AO to consider the amount of interest and finance charges of Rs.11,65,40,000/- for disallowance, on the ground that business was not commenced during the subject year 3. The Learned Commissioner of Income Tax (Appeals) failed to adjudicate the following grounds raised by the appellant: a. The Learned Assessing Officer, without any reason and not discussing on other grounds completed the assessment by adding a sum of Rs.79,77,659/- as income from other sources. b. The Learned Assessing Officer erred in restricting the carry forward loss claimed by the appellant. For these grounds and such other grounds that may be adduced before or during the hearing of this appeal with the leave of this Hon'ble Tribunal, it is humbly prayed that justice may be rendered by deleting the above disallowances. 2. The Petitioner submits that, this Hon'ble Tribunal had disposed the aforementioned appeal vide order dated 21.09.2022. However, in the said order at Para No. 23 of Page No. 15 Your Hon'ble Authority has stated that "The only issue that came up for our consideration from the assessee as well as the revenue appeal is disallowance u/s.UA r.w.r.80 of Income Tax Rules, 1962, amounting to Rs.12,31,77,832/-." Without considering Ground No.3 raised by the Petitioner/ Appellant and adjudicating the same. 3. Further, the Petitioner's Counsel during the arguments before Your Hon'ble Authority has raised an Oral Ground with respect to the issue in Ground No. 2 that the issue before the CIT(A) was disallowance u/s 14A , however the CIT(A) had deleted the addition u/s 14A and directed the AO to consider disallowance of interest and finance charges, without issuing an enhancement notice and opportunity to the petitioner to rebut to the same which is in violation of the provisions of Section .251 (2) of the Act and hence the action of the CIT(A) is in violation of the principles of natural justice and law . However, Your Hon'ble Authority while disposing off the appeal on the issue of Section 14A disallowance failed to record and adjudicate the Oral Ground raised by the Petitioner's counsel during the course of hearing. 4. In these circumstances, it is humbly prayed that this Hon'ble Tribunal may be pleased to allow the Miscellaneous Petition and restore the appeal in ITA No.3204/Chny/2016 thus render justice. 3. We have heard both the sides and considered the contents of Miscellaneous Application filed by the assessee. At the time of hearing, the Ld.Counsel for the assessee referring to the order of the Hon’ble Madras MA No.50/Chny/2023 (in ITA No.3204/Chny/2016) :: 3 :: High Court in TCA No.258 of 2023 submits that the question of law raised before the Hon’ble Madras High Court has been admitted for adjudication, and thus, present Miscellaneous Application filed by the assessee becomes infructuous and same needs to be dismissed. The Ld.DR present has no objection for dismissal of MA filed by the assessee. Therefore, considering the given facts and circumstances of the case, we dismiss the Miscellaneous Application filed by the assessee as infructuous. 4. In the result, the Miscellaneous Application filed by the assessee is dismissed as infructuous. Order pronounced in the open Court on the 14 th day of July, 2023, in Chennai. Sd/- (वी. दुगा राव) (V. DURGA RAO) याियक सद य/JUDICIAL MEMBER Sd/- (मंजूनाथा.जी) ( MANJUNATHA.G) लेखा सद य/ACCOUNTANT MEMBER चे ई/Chennai, दनांक/Dated: 14 th July, 2023. TLN आदेश क ितिलिप अ ेिषत/Copy to: 1. अपीलाथ /Appellant 3. आयकर आयु /CIT 5. गाड फाईल/GF 2. यथ /Respondent 4. िवभागीय ितिनिध/DR