MEDHA SERVO DRIVES PRIVATE LIMITED ,HYDERABAD vs. DY. COMMISSIONER OF INCOME TAX , CENTRAL CIRCLE-1(4), HYDERABAD

We notice at the outset with the able assistance of both the parties that the assessee’s identical sole substantive grievance herein seeks to reverse both the lower authorities’ action making Section 14A r.w.Rule 8D disallowance of Rs.6,82,685/- in AY.2012-13 and Rs.9,61,911/- each in latter twin appeals for AY.2014-15; respectively.

Suffice to say, it transpires at the outset that the instant identical issue is no more res integra in all these cases for the precise reason that the Assessing Officer’s regular assessment in AY.2012-13 framed on 31-03-2015 had already made the very disallowance which is an instance of double addition therefore. We further observe that the CIT(A)’s order in AY.2012-13’s appeal ITA No.438/Hyd/2020 has not adjudicated the instant issue on merits. We therefore hold that the impugned addition made in Section 143(3) r.w.s.153A assessment is not liable to be sustained since not based on any incriminating material and the same had already been made in Section 143(3) assessment. We therefore accept the assessee’s grievance herein. Its former appeal ITA No.438/Hyd/2020 succeeds therefore.

The outcome is no different in assessee’s latter twin appeal ITA Nos.439 & 440/Hyd/2020 pertaining to AY.2014- 15 as well since this tribunal’s co-ordinate bench decision in its C.O.No.23/Hyd/2018 filed in Revenue’s appeal No.655/2018 involving Section 143(3) assessment challenging the very disallowance stood accepted on the ground that it had not derived any exempt income. We therefore adopt the

These assessee’s three appeals are allowed in above terms. A copy of this common order be placed in the respective case files.