NELSUN PAPER MILL LIMITED, CHENNAI v. ITO CORPORATE WARD 4(4), CHENNAI

ITA 1711/CHNY/2019 | 2014-2015
Pronouncement Date: 28-11-2019 | Result: Allowed

Appeal Details

RSA Number 171121714 RSA 2019
Assessee PAN AAACN2359J
Bench Chennai
Appeal Number ITA 1711/CHNY/2019
Duration Of Justice 5 month(s) 29 day(s)
Appellant NELSUN PAPER MILL LIMITED, CHENNAI
Respondent ITO CORPORATE WARD 4(4), CHENNAI
Appeal Type Income Tax Appeal
Pronouncement Date 28-11-2019
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted C
Tribunal Order Date 28-11-2019
Last Hearing Date 25-09-2019
First Hearing Date 25-09-2019
Assessment Year 2014-2015
Appeal Filed On 30-05-2019
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: CHENNAI ! '!# $ % BEFORE SHRI GEORGE MATHAN JUDICIAL MEMBER AND SHRI INTURI RAMA RAO ACCOUNTANT MEMBER ! ./ ITA NOS.1711 & 1712/CHNY/2019 & /ASSESSMENT YEARS: 2014-15 & 2015-16 M/S. NELSUN PAPER MILL LIMITED (FORMERLY KNOWN AS KGS NELSUN PAPER MILL PRIVATE LIMITED) KGS CORPORATE HOUSE NO.43 BESANT AVENUE ROAD ADYAR CHENNAI 600 020. [PAN: AAACN 2359J] VS. INCOME TAX OFFICER CORPORATE WARD-4(4) CHENNAI 600 034 ( ' /APPELLANT) ( ()' /RESPONDENT) ! ./ ITA NO.1420/CHNY/2019 & /ASSESSMENT YEAR: 2015-16 THE ASSISTANT COMMISSIONER OF INCOME TAX CORPORATE CIRCLE-4(2) CHENNAI 600 034 VS. M/S. KGS NELSUN PAPER MILL LIMITED NO.43 BESANT AVENUE ROAD ADYAR CHENNAI 600 020. [PAN: AAACN 2359J] ( ' /APPELLANT) ( ()' /RESPONDENT) ASSESSEE BY : MR. G. BASKAR & MR. I. DINESH ADVOCATES DEPARTMENT BY : MS. R. ANITHA JCIT * + - /DATE OF HEARING : 28.11.2019 ./& + - / DATE OF PRONOUNCEMENT : 28.11.2019 0 / O R D E R ITA NOS.1711 & 1712/CHNY/2019 & I.T.A. NO.1420/CHNY /2019 :- 2 -: PER SHRI GEORGE MATHAN JUDICIAL MEMBER : ITA NOS.1711 & 1712/CHNY/2019 ARE APPEALS FILED BY THE ASSESSEE IN THE CASE OF M/S. NELSUN PAPER MILL LIMITED CHENNAI AGA INST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-8 CHE NNAI (HEREINAFTER CALLED AS CIT(A)) IN APPEAL NOS. ITA NOS.59 & 289/16-17 DATED 12.03.2019 FOR THE ASSESSMENT YEARS 2014-15 & 2015-16. ITA NO.1420/CH NY/2019 IS AN APPEAL FILED BY THE REVENUE IN THE CASE OF M/S. KGS NELSUN PAPER MILL LIMITED AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF IN COME TAX (APPEALS)-8 CHENNAI IN I.T.A NO.65/17-18 DATED 20.03.2019 FOR THE ASSESSMENT YEAR 2015-16. AS ALL THESE APPEALS ARE INTER-CONNECTED AND INVOLVE IDENTICAL ISSUES THEY HAVE BEEN DISPOSED OF BY THIS COMMON O RDER. 2. MR. G. BASKAR & MR. I. DINESH ADVOCATES REPRESENTED ON BEHALF OF THE ASSESSEE AND MS. R. ANITHA JCIT REPRESENTED ON BEHALF OF THE REVENUE. 3. IT WAS SUBMITTED BY THE LEARNED AUTHORIZED REPRE SENTATIVE THAT THE ONLY ISSUE IN THE ASSESSEES APPEALS WAS AGAINST THE ACT ION TAKEN BY THE LEARNED CIT(A) IN CONFIRMING THE DISALLOWANCE MADE BY THE A SSESSING OFFICER BY INVOKING THE PROVISION OF SECTION 14A OF THE INCOME TAX ACT 1961. IT WAS A SUBMISSION THAT THE ASSESSEE HAS NOT EARNED EXEMPT INCOME AND CONSEQUENTLY IN VIEW OF THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF COMMISSIONER OF INCOME TAX (CENTRAL)-1 CHENNAI VS. CHETTINAD LOGISTICS (P.) LTD. REPORTED IN [2017] 80 TAXMANN. COM 221 (MADRAS) WHEREIN IT HAS BEEN HELD THAT WHERE NO EXEMPT INCOME WAS EARNE D IN THE RELEVANT ITA NOS.1711 & 1712/CHNY/2019 & I.T.A. NO.1420/CHNY /2019 :- 3 -: ASSESSMENT YEARS BY THE ASSESSEE SECTION 14A OF TH E INCOME TAX ACT 1961 COULD NOT BE INVOKED. IT WAS A SUBMISSION THAT THE SAID DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT HAS ALSO BEEN AFFIRMED BY THE HONBLE SUPREME COURT BY DISMISSAL OF THE SLP REPORTED IN [2018] 95 TAXMANN.COM 250 (SC). 4. THE LEARNED AUTHORIZED REPRESENTATIVE DREW OUR A TTENTION TO THE ASSESSMENT ORDER WHEREIN IT HAS BEEN CATEGORICALLY MENTIONED THAT THE ASSESSEE HAS NOT EARNED ANY EXEMPT INCOME. 5. IN REPLY THE LEARNED DEPARTMENTAL REPRESENTATIV E VEHEMENTLY SUPPORTED THE ORDER OF THE LEARNED ASSESSING OFFICE R AND THE LEARNED CIT(A). 6. WE HAVE CONSIDERED THE RIVAL SUBMISSION AND PERU SED THE MATERIALS AVAILABLE ON RECORD. 7. AS IT IS NOTICED THAT THE ASSESSEE HAS NOT EARNE D ANY EXEMPT INCOME DURING THE RELEVANT ASSESSMENT YEARS RESPECTFULLY FOLLOWING THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF TH E COMMISSIONER OF INCOME TAX (CENTRAL)-1 CHENNAI VS. CHETTINAD LOGISTICS ( P.) LTD. WHICH HAS BEEN AFFIRMED BY THE HONBLE SUPREME COURT THE DISALLOW ANCE AS MADE BY THE ASSESSING OFFICER AND AS CONFIRMED BY THE LEARNED C IT(A) BY INVOKING THE PROVISION OF SECTION 14A OF THE INCOME TAX ACT 196 1 STANDS DELETED. CONSEQUENTLY THE APPEALS OF THE ASSESSEE ARE ALLOW ED. ITA NOS.1711 & 1712/CHNY/2019 & I.T.A. NO.1420/CHNY /2019 :- 4 -: 8. IN THE APPEAL OF THE REVENUE IN ITA NO.1420/CHNY /2019 THE REVENUE HAS CHALLENGED THE ACTION OF THE LEARNED CIT(A) IN GIVING PARTIAL RELIEF IN RESPECT OF THE DISALLOWANCE MADE U/S.14A OF THE INC OME TAX ACT 1961. AS WE HAVE ALREADY ALLOWED THE ASSESSEES APPEAL AND HELD THAT NO DISALLOWANCE U/S.14A IS LIABLE TO BE MADE IN THE HANDS OF THE AS SESSEE FOR THE RELEVANT ASSESSMENT YEARS AS THE ASSESSEE HAS NOT EARNED AN Y EXEMPT INCOME THE APPEAL OF THE REVENUE IS DISMISSED. 9. IN THE RESULT THE APPEALS OF THE ASSESSEE ARE A LLOWED AND THE APPEAL OF THE REVENUE STANDS DISMISSED. ORDER PRONOUNCED ON THE 28 TH DAY OF NOVEMBER 2019 IN CHENNAI. SD/- ( '!# $ ) (INTURI RAMA RAO) - /ACCOUNTANT MEMBER SD/- ( ) (GEORGE MATHAN) /JUDICIAL MEMBER /CHENNAI 1! /DATED: 28 TH NOVEMBER 2019 . IA SR. P.S 0 + ( 23 43& /COPY TO: 1. ' /APPELLANT 2. ()' /RESPONDENT 3. * 5 ( )/CIT(A) 4. * 5 /CIT 5. 3 67 ( /DR 6. 78 9 /GF