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

ITA 937/Hyd/2018 | 2014-2015
Pronouncement Date: 06-05-2021 | Result: Allowed

Appeal Details

RSA Number 93722514 RSA 2018
Assessee PAN AABCC6780D
Bench Hyderabad
Appeal Number ITA 937/Hyd/2018
Duration Of Justice 2 year(s) 11 month(s) 25 day(s)
Appellant Creamline Dairy Projects Limited, Hyderabad
Respondent Dy. Commissioner of Income Tax , Circle-1(2), Hyderabad
Appeal Type Income Tax Appeal
Pronouncement Date 06-05-2021
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted DB-B
Tribunal Order Date 06-05-2021
Last Hearing Date 09-01-2020
First Hearing Date 09-02-2021
Assessment Year 2014-2015
Appeal Filed On 11-05-2018
Judgment Text
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. 937 /HYD/2018 ASSESSMENT YEAR: 201 4 - 15 CREAMLINE DAIRY PROJECTS LIMITED HYDERABAD [PAN: AABCC6780D ] VS THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE - 1( 2 ) HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI K.C.DEVDAS A R FOR REVENUE : SHRI ROHIT MUJUMDAR DR DATE OF HEARING : 09 - 02 - 2021 DATE OF PRONOUNCEMENT : 06 - 0 5 - 2021 O R D E R PER S.S. GODARAA JM : THIS ASSESSEES APPEAL FOR AY.201 4 - 15 ARISES FROM THE CIT(A) - 1 HYDERABADS ORDER DATED 1 8 - 12 - 2017 PASSED IN CASE NO.0 227 /CIT(A) - 1/HYD/2016 - 17/201 7 - 18 IN PROCEEDINGS U/S.143(3) OF THE INCOME TAX ACT 1961 [IN SHORT THE ACT]. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. THE ASSESSEE HAS RAISED THE FOLLOWING SUBSTANTIVE GROUNDS IN THE INSTANT APPEAL: 2. THE L D.CIT(A) OUGHT TO HAVE OBSERVED THAT THE ASSE SSING OFFICER ERRED IN ARRIVING AT THE CONCLUSION THAT THE EXPENDITURE INCURRED WOULD COME INTO THE AMBIT OF PROVISIONS OF SECTION 14A OF THE I.T.ACT. ITA NO. 937 /HYD/2018 : - 2 - : 3. THE L D.CIT(A) OUGHT TO HAVE DIRECTED THE ASSESSING OFFICER THAT IN THE FACTS AND CIRCUMSTANCES OF THE CASE THERE WAS NO SCOPE FOR APPLYING PROVISIONS OF SECTION 14A AND DISALLOW EXPENDITURE OF RS.14 90 000/ - 4. THE LD.CIT(A) OUGHT TO HAVE OBSERVED THAT THE ASSESSING OFFICER ERRED IN WORKING OUT T HE DISALLOWANCE AT RS.14 90 000/ - BY INVOKING PROVISIONS OF SECTION 14A AND THEREFORE THE SAME LIABLE TO BE DELETED. 3. AT THE OUTSET LEARNED AUTHORISED REPRESENTATIVE SUBMITTED THAT THERE IS NO DIVIDEND INCOME EARNED IN THE RELEVANT PREVIOUS YEAR. I N THIS CONNECTION HE RELIED ON 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 8D APPLIES ONLY IN RELATION TO AN ASSESSEES EXEMPT INCOME AND NOT OTHERWISE. WE THEREFORE DELETE THE IMPUGNED DISALLOWANCE. 4. THIS ASSESSEES APPEAL IS ALLOWED IN ABOVE TERMS. ORDER PRONOUNCED IN THE OPEN COURT ON 06 TH MAY 2021 SD/ - SD/ - (LAXMI PRASAD SAHU) (S.S.GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD DATED: 06 - 0 5 - 2021 ITA NO. 937 /HYD/2018 : - 3 - : *GMV COPY TO : 1. CREAMLINE DAIRY PROJECTS LIMITED C/O B.NARSING RAO & CO. C HARTERED ACCOUNTANTS PLOT NO.554 ROAD NO.92 JUBILEE HILLS HYDERABAD . 500 096 2.THE DY.COMMISSIONER OF INCOME TAX CIRCLE - 1(1) HYDERABAD. 3.CIT(APPEALS) - 1 HYDERABAD. 4.PR.CIT - 1 HYDERABAD. 5.D.R. ITAT HYDERABAD. 6.GUARD FILE.