ACIT, Central Circle-3(1), Hyd, Hyderabad V. Highgrace Investments Pvt Ltd, Hyd, Hyderabad

MA 90/HYD/2016

• Counselvise Citation: [2017] 124 COUNSELVISE.COM (IT) 5413 (ITAT-HYDERABAD)
• Duration Of Justice: 2 month(s) 20 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 03-03-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 03-03-2017
• Assessment Year: 2004-2005
• Appeal Filed On: 13-12-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUMAN MALIK
• Keywords: Tax effect
• Section: 143(3); 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER M.A. NO. 90/H/2016 (IN ITA NO. 670/HYD/2015 ASSESSMENT YEAR: 2004-05) ASST. COMMISSIONER OF INCOME- TAX, CENTRAL CIRCLE 3(1), HYDERABAD. VS. M/S HIGHGRACE INVESTMENTS PVT. LTD., HYDERABAD. PAN AAACH5018G (APPLICANT) (RESPONDENT) REVENUE BY : SMT. SUMAN MALIK ASSESSEE BY : SHRI K.C. DEVDAS DATE OF HEARING 03-03-2017 DATE OF PRONOUNCEMENT 15-03-2017 O R D E R PER S. RIFAUR RAHMAN, A.M.: THIS MA FILED BY THE ASSESSEE IS ARISING OUT OF OR DER DATED 09/03/2016 PASSED IN ITA NO. 670/HYD/2015 WHEREIN T HE TRIBUNAL HAS DISMISSED THE APPEAL OF THE REVENUE ON THE GROUND T HAT THE TAX EFFECT IS BELOW THE MONETARY LIMITS FIXED BY THE BOARD FOR FILING APPEAL BEFORE THE TRIBUNAL. 2. IN THE M.A., THE REVENUE STATED THAT THE TAX EFF ECT IN THIS CASE IS OF RS. 10,62,471/- AS SEEN FROM THE ASSESSMENT ORDE R AND THEREFORE, THERE IS A MISTAKE APPARENT FROM RECORD AND HENCE, THE SAME MAY BE RECTIFIED U/S 254(2) OF THE ACT. 2 M.A. NO. 90/HYD/2016 HIGHGRACE INVESTMENTS P. LTD. 3. AT THE TIME OF HEARING, THE LD. AR OF THE ASSESS EE HAS INVITED THE ATTENTION OF THE BENCH TO A COPY OF THE CONSEQU ENTIAL ORDER PASSED BY THE DCIT, CENTRAL CIRCLE 3(1)(I/C), HYD ERABAD, DATED 04/02/2015, WHICH IS REPRODUCED AS BELOW: CONSEQUENT TO THE ORDER OF CIT(A)-12, HYDERABADS O RDER IN ITA NO. 2184/CIT(A)-12/HYD/2014-15, DATED 27/02/201 5, THE INCOME OF THE ASSESSEE IS RECOMPUTED AS UNDER: INCOME DETERMINED AS PER THE DIRECTIONS OF THE CIT(A) VIDE ORDER UNDER REFERENCE (AS PER THE 143(3) DATED 14/11/2006. (-) 56,42,215 ADD DISALLOWANCE U/S 14A AS PER CT(A)S ORDER UNDER REFERENCE RS. 50,000/- INCOME NOW DETERMINED (-) 55,92,215/- REFERRING TO THE ABOVE, LD. AR SUBMITTED THAT AS TH E INCOME COMPUTED BY THE AO IS NEGATIVE, THERE IS NO QUESTION OF ARIS ING TAXABLE INCOME IN ASSESSEES CASE. 4. CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL FACTS ON RECORD. AS THE ASSESSED INCOME OF THE ASSE SSEE IS NEGATIVE, THE QUESTION OF TAXABLE INCOME DOES NOT ARISE IN TH IS CASE. THEREFORE, THE MA FILED BY THE REVENUE DOES NOT HAVE ANY MERIT AND THE SAME IS HEREBY DISMISSED. 5. IN THE RESULT, MA FILED BY THE ASSESSEE IS DISMI SSED. PRONOUNCED IN THE OPEN COURT ON 3 RD MARCH, 2017. SD/- SD/- (P. MADHAVI DEVI) (S. RIFAUR RAHMA N) JUDICIAL MEMBER ACCOU NTANT MEMBER HYDERABAD, DATED:3 RD MARCH, 2017 KV 3 M.A. NO. 90/HYD/2016 HIGHGRACE INVESTMENTS P. LTD. COPY TO:- 1) ACIT, CENTRAL CIRCLE 3(1), 3 RD FLOOR, POSNETT BHAVAN, TILAK ROAD, HYDERABAD. 2) M/S HIGHGRACE INVESTMENTS PVT. LTD., RK RESIDENC Y, H.NO. 8-3-229/D/32, 1 ST FLOOR, VENKATAGIRI, YOUSUFGUDA, HYD. 3) CIT(A) - 12, HYDERABAD 4) CIT (CENTRAL), HYDERABAD 5) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDE RABAD. 6) GUARD FILE