ACIT Corporate Circle 4(2), CHENNAI V. Karmen International P Ltd., CHENNAI

MA 76/CHNY/2018

• Counselvise Citation: [2018] 111 COUNSELVISE.COM (IT) 1469 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 17 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 08-10-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 21-09-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S VIJAYAPRABHA
• Assessee Lawyers: S SRIDHAR
• Keywords: Earning of tax free income; Rule 8D
• Section: 14A

Judgement Text

, , IN THE INCOME-TAX APPELLATE TRIBUNAL C BENCH, CHENNAI . , . , BEFORE SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER & SHRI DUVVURU RL REDDY, JUDICIAL MEMBER M.P. NOS. 75 & 76/CHNY/2018 [IN I.T.A.NOS.1279 & 1535/CHNY/2017] ASSESSMENT YEARS: 2012-13 AND 2013-14 THE DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 4(2) CHENNAI. VS. M/S. KARMEN INTERNATIONAL P. LTD., NO. 12, PONNIAMMAN NAGAR, AYANAMBAKKAM, CHENNAI 600 095. [PAN: AAACK8998A] ( /APPELLANT ) ( / RESPONDENT ) / APPELLANT BY : MS. S. VIJAYAPRABHA, JCIT / RESPONDENT BY : SHRI S. SRIDHAR, ADVOCATE / DATE OF HEARING : 20.07.2018 /DATE OF PRONOUNCEMENT : 08.10.2018 / O R D E R PER DUVVURU RL REDDY, JUDICIAL MEMBER: IN BOTH THE MISCELLANEOUS PETITIONS FILED BY THE REVENUE AGAINST THE ORDER OF THE TRIBUNAL IN I.T.A. NOS. 1279 & 1535/CHNY/2017 DATED 21.09.2017, FOR THE ASSESSMENT YEARS 2012-13 & 2013-14, ITS GRIEVANCE IS THAT THE TRIBUNAL RESTRICTED THE DISALLOWANCE OF DIVIDEND INCOME TO THE EXTENT OF EXEMPT INCOME EARNED BY THE ASSESSEE INSTEAD OF FOLLOWING THE DECISION OF THE COORDINATE BENCHES OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2010-11 IN I.T.A. NO. 57/CHNY/2015 AND THUS, THERE IS A M.P. NOS.75 & 76/CHNY/18 2 MISTAKE APPARENT ON RECORD AND PLEADED FOR RECALLING THE ORDER DATED 21.09.2017 FOR BOTH THE ASSESSMENT YEARS. 2. PER CONTRA, THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT ALTERNATIVE GROUND RAISED IN THAT APPEAL OF THE ASSESSEE FOR THE ASSESSMENT YEAR 2010-11 RELATING TO ESTIMATED DISALLOWANCE UNDER SECTION 14A OF THE ACT R.W. RULE 8D TO THE EXTENT OF THE TAX FREE INCOME EARNED WAS ADJUDICATED BY THE TRIBUNAL IN ITS ORDER IN M.P. NO. 106/CHNY/2015 ARISING OUT OF I.T.A. NO. 57/CHNY/2015 AND RESTRICTED THE DISALLOWANCE TO THE EXTENT OF EXEMPT INCOME EARNED BY THE ASSESSEE BY FOLLOWING THE DECISION OF THE HONBLE DELHI HIGH COURT IN THE CASE OF JOINT INVESTMENTS PVT. LTD. V. CIT 372 ITR 694. THUS, THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THERE IS NO MISTAKE APPARENT FROM THE ORDER DATED 21.09.2017 PASSED BY THE TRIBUNAL WARRANTING READJUDICATION OF THE APPEALS FOR BOTH THE ASSESSMENT YEARS. 3. WE HAVE HEARD BOTH SIDES, PERUSED THE ORDERS OF THE TRIBUNAL. WE FIND THAT THE ALTERNATIVE GROUND RAISED BY THE ASSESSEE IN ITS APPEAL FOR THE ASSESSMENT YEAR 2010-11 WAS INADVERTENTLY OMITTED FOR ADJUDICATION AND ACCORDINGLY, VIDE M.P. NO. 106/CHNY/2015 DATED 28.10.2015, THE TRIBUNAL CONSIDERED THE ALTERNATIVE GROUND AND RESTRICTED THE DISALLOWANCE UNDER SECTION 14A OF THE ACT R.W. RULE 8D TO THE EXTENT OF EXEMPT INCOME EARNED BY THE ASSESSEE BY FOLLOWING THE DECISION IN THE CASE OF JOINT INVESTMENTS PVT. LTD. V. CIT (SUPRA). SIMILARLY, FOR THE ASSESSMENT YEARS 2012-13 AND M.P. NOS.75 & 76/CHNY/18 3 2013-14, BY FOLLOWING THE ABOVE SAID DECISION OF THE HONBLE DELHI HIGH COURT IN THE CASE OF JOINT INVESTMENTS PVT. LTD. V. CIT (SUPRA), VIDE COMMON ORDER DATED 21.09.2017 IN I.T.A. NOS. 1279 & 1535/CHNY/2017, THE TRIBUNAL RESTRICTED THE DISALLOWANCE UNDER SECTION 14A OF THE ACT R.W. RULE 8D TO THE EXTENT OF EXEMPT INCOME EARNED BY THE ASSESSEE. THUS, WE FIND NO MISTAKE APPARENT FROM ABOVE THE ORDER OF THE TRIBUNAL DATED 21.09.2017 WARRANTING FRESH CONSIDERATION. ACCORDINGLY, BOTH THE MISCELLANEOUS PETITIONS FILED BY THE REVENUE ARE DISMISSED. 4. IN THE RESULT, BOTH THE M.P.S FILED BY THE REVENUE ARE DISMISSED. ORDER PRONOUNCED ON THE 08 TH OCTOBER, 2018 AT CHENNAI. SD/- SD/- (ABRAHAM P. GEORGE) ACCOUNTANT MEMBER (DUVVURU RL REDDY) JUDICIAL MEMBER CHENNAI, DATED, THE 08.10.2018 VM/- /COPY TO: 1. / APPELLANT, 2. / RESPONDENT, 3. ( ) /CIT(A), 4. /CIT, 5. /DR & 6. /GF.