BBR Projects Private Limited , Hyderabad v. Dy. Commissioner of Income Tax , Circle-1(2), Hyderabad

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S.GODARA JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU ACCOUNTANT MEMBER I.T.A. NO. 1977/HYD/2018 ASSESSMENT YEAR: 2012-13 BBR PROJECTS PRIVATE LIMITED HYDERABAD [PAN: AACCB7153J] VS DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-1(2) HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI P.MURALI MOHANA RAO AR FOR REVENUE : SHRI ROHIT MUJUMDAR DR DATE OF HEARING : 17-02-2021 DATE OF PRONOUNCEMENT : 19-03-2021 O R D E R PER S.S.GODARA J.M. : THIS ASSESSEES APPEAL FOR AY.2012-13 ARISES FROM TH E CIT(A)-1 HYDERABADS ORDER DATED 23-08-2018 PASSED IN APPEAL NO.0213 / CIT(A)-1 HYD / 2016-17 / 2018-19 IN PROCEEDINGS U/S.143(3) OF THE INCOME TAX ACT 1961 [I N SHORT THE ACT]. HEARD BOTH PARTIES. CASE FILE PERUSED. 2. LEARNED COUNSEL STATES VERY FAIRLY THAT THE ASSESSEE IS NOT PRESSING FOR THE FORMER ISSUE OF LEGALITY OF SECTION 147/148 RE-OPENING MECHANISM TAKEN RECOURSE TO BY THE ASSESSIN G ITA NO. 1977/HYD/2018 :- 2 -: OFFICER AS CONFIRMED IN THE CIT(A)S ORDER. THE SAME IS DISMISSED AS NOT PRESSED THEREFORE. 3. COMING TO THE LATTER ISSUE OF SECTION 14A R.W.S.8D DISALLOWANCE OF RS.11 83 326/- MADE IN BOTH THE LOWER PROCEEDINGS. WE NOTICE AT THE OUTSET WITH THE ABLE ASSI STANCE OF BOTH THE PARTIES THAT THE ASSESSEE HAS NOT DECLARED ANY EXEMPT INCOME IN ITS COMPUTATION AS IT IS EVIDENT FROM A PERUSAL OF ITS PAPER BOOK RUNNING INTO 42 PAGES. IT H AS QUOTED THE FOLLOWING CASE LAW: I. CIT VS. CHETTINAD LOGISTICS PVT. LTD. [80 TAXMANN.COM 221] (MADRAS); II. CIT VS. CORRTECH ENERGY PVT. LTD. [223 TAXMAN 130] (GUJ); III. CHEMINVEST LTD. VS. CIT (2015) [378 ITR 33] (DEL) THEIR LORDSHIPS HOLD THAT SECTION 14A READ WITH RULE 8 D APPLIES ONLY IN RELATION TO AN ASSESSEES EXEMPT INCOM E THAN HAVING ANY INDEPENDENT EXIGIBILITY AND NOT OTHERWISE. WE THEREFORE DELETE THE IMPUGNED DISALLOWANCE FOR THIS PR ECISE REASON ALONE. 4. THIS ASSESSEES APPEAL IS PARTLY ALLOWED IN ABOVE TERMS. ORDER PRONOUNCED IN THE OPEN COURT ON 19 TH MARCH 2021 SD/- SD/- (LAXMI PRASAD SAHU) (S.S.G ODARA) ACCOUNTANT MEMBER JUDICIAL MEM BER HYDERABAD DATED: 19-03-2021 TNMM ITA NO. 1977/HYD/2018 :- 3 -: COPY TO : 1.BBR PROJECTS PRIVATE LIMITED C/O. P.MURALI & CO. CHARTERED ACCOUNTANTS 6-3-655/2/3 1 ST FLOOR SOMAJIGUDA HYDERABAD. 2.THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-1(2 ) HYDERABAD. 3.CIT(APPEALS)-1 HYDERABAD. 4.PR.CIT-1 HYDERABAD. 5.D.R. ITAT HYDERABAD. 6.GUARD FILE.