ACIT, C-4(1), Chandigarh V. M/s Chemvin Industries, Chandigarh

MA 78/CHANDI/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 4785 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 month(s) 28 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 09-08-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 12-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SUNIL KUMAR M A NO CHD IN
• Keywords: Earning of tax free income; Tax effect
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH A, CHANDIGARH BEFORE SMT. DIVA SINGH, JUDICIAL MEMBER AND DR. B.R.R. KUMAR, ACCOUNTANT MEMBER M.A. NO. 76/CHD/2019 (IN ITA NO. 777/CHD/2018) ACIT-C-4(1) VS. M/S DIAMOND PLASTIC CHANDIGARH PRODUCTS # 52, SECTOR 28-A CHANDIGARH ASSESSEE BY: SHRI AMRENDRA SINGH M.A. NO. 77/CHD/2019 (IN ITA NO. 440/CHD/2018) ACIT-C-4(1) VS. M/S INSCOL HEALTHCARE PVT. LTD. CHANDIGARH SCO 18-19, SECTOR 34-A CHANDIGARH ASSESSEE BY: SHRI SUNIL KUMAR M.A. NO. 78/CHD/2019 (IN ITA NO. 776/CHD/2018) ACIT-C-4(1) VS. M/S CHEMVIN INDUSTRIES CHANDIGARH # 52, SECTOR 28-A CHANDIGARH ASSESSEE BY: SHRI AMRENDRA SINGH M.A. NO. 79/CHD/2019 (IN ITA NO. 815/CHD/2018) ACIT-C-4(1) VS. M/S ASIAN CONCRETES & CEMENTS CHANDIGARH PVT. LTD, SCF 270, MOTOR MARKET MANSA DEVI ROAD, MANIMAJRA CHANDIGARH ASSESSEE BY: SHRI AMRENDRA SINGH M.A. NO. 80/CHD/2019 (IN ITA NO. 298/CHD/2018) ACIT-C-4(1) VS. M/S IVY HEALTHCARE & LIFE CHANDIGARH SCIENCE PVT. LTD. # 449, SECTOR 71, MOHALI PUNJAB ASSESSEE BY: NONE M.A. NO. 84/CHD/2019 (IN ITA NO. 845/CHD/2018) ACIT-C-4(1) VS. M/S G. NEXT MEDIA PVT. LTD. CHANDIGARH MOHALI ASSESSEE BY: SHRI AMRENDRA SINGH (APPELLANT) (RESPONDENT) DEPARTMENT BY : SHRI MANJIT SINGH DATE OF HEARING : 09/08/2019 DATE OF PRONOUNCEMENT : 09/08/2019 O R D E R PER DR.B.R.R.KUMAR, A.M . ALL THE ABOVE CASES OF THE REVENUE HAVE BEEN DISMIS SED OWING TO LOW TAX EFFECT BY REFERRING TO CIRCULAR NO. 3/2018 DT. 11/07/2018 OF CBDT. THE ISSUE INVOLVED WAS ADDITION ON ACCOUNT OF SECTION 14A. TH E REVENUE HAS CONTESTED IN THE M.A. THAT THOUGH THE TAX EFFECT INVOLVED IN THESE CASES IS BELOW THE MONETARY LIMIT AS PRESCRIBED VIDE CBDT CIRCULAR NO. 3/2018 DATED 11/07/2018, HOWEVER, SINCE THE ISSUE INVOLVED FALLS UNDER THE E XCEPTION MENTIONED IN PARA 10 (B) OF THE SAID CIRCULAR IT SHOULD NOT HAVE BEEN DISMISSED OWING TO TAX EFFECT. 2. THE CLAUSE IN THE SAID CIRCULAR READS AS UNDER: 10. ADVERSE JUDGMENTS RELATING TO THE FOLLOWING ISS UES SHOULD BE CONTESTED ON MERITS NOTWITHSTANDING THAT THE TAX EFFECT ENTAILED IS LESS THAN THE MONET ARY LIMITS SPECIFIED IN PARA 3 ABOVE OR THERE IS NO TAX EFFECT. A) . B) WHERE BOARDS ORDER, NOTIFICATION, INSTRUCTION O R CIRCULAR HAS BEEN HELD TO BE ILLEGAL OR ULTRA VIR ES, OR C) . 3. DURING THE ARGUMENTS A PERTINENT QUESTION WAS AS KED TO THE REVENUE WHETHER THIS CIRCULAR NO. 5/2014 RELATING TO DISAL LOWANCE OF EXPENDITURE FOR EARNING EXEMPT INCOME UNDER SECTION 14A HAS BEEN HE LD TO BE INVALID OR ILLEGAL / ULTRA VIRES BY ANY COURT OR TRIBUNAL. 4. THE LD. DR REPLIED THAT THE SAID CIRCULAR STILL IN FORCE AND NOT HAS BEEN HELD TO BE ILLEGAL OR ULTRA VIRES. 5. HENCE, WE HEREBY HOLD THAT THE CASES DO NOT FALL UNDER THE CLAUSE 10(B) OF THE CIRCULAR NO. 3 / 2018, AND ACCORDINGLY ALL T HE M.AS ARE HEREBY DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (DIVA SINGH) (DR. B.R.R. KUMAR) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 09/08/2019 AG COPY TO: 1.THE APPELLANT, 2. THE RESPONDENT, 3. THE CIT(A ), 4. THE CIT, 5. THE DR