INCOME TAX OFFICER, WARD-16(2), HYDERABAD, HYDERABAD vs. PHOENIX INFRATECH (INDIA) PRIVATE LIMITED, HYDERABAD

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ITA 1427/HYD/2017Status: DisposedITAT Hyderabad25 May 2018AY 2013-142 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s decision, following a previous ruling by a coordinate bench. The ruling stated that no disallowance under Section 14A is to be made if there is no claim of exempt income.

What were the facts?

The Revenue appealed against the CIT(A)'s order deleting the disallowance made by the AO under Section 14A. The CIT(A) deleted the disallowance because the assessee had not claimed any exempt income during the relevant financial year.

What were the issues?

Whether disallowance under Section 14A is permissible when the assessee has not claimed any exempt income.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Hyderabad ‘ A ‘ Bench, Hyderabad

Before: Smt. P. Madhavi Devi & Shri B. Ramakotaiah

Hearing: 23.05.2018Pronounced: 25.05.2018

Per Smt. P. Madhavi Devi, J.M.

This is Revenue’s appeal for the A.Y 2013-14 against the order of the learned CIT (A)-4, Hyderabad, dated 31.05.2017. The only issue involved in this appeal is against the order of the CIT (A) deleting the disallowance made by the AO u/s 14A of the Act.

2.

After hearing both the parties, we find that the CIT (A) has deleted the disallowance u/s 14A of the Act on the ground that the assessee has not claimed any income as exempt from tax during the relevant financial year and the Coordinate Bench of the Tribunal (to which both of us are signatory) in the case of the

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ITA No 1427 of 2017 Phoenix Infratech India P Ltd Hyderabad.

assessee for the A.Ys 2010-11 to 2012-13 in ITA Nos.720 to 722/Hyd/2016 dated 28.09.2016 have held that no disallowance u/s 14A is to be made where there is no claim of exempt income from tax. We find that the CIT (A) has followed the said decision to delete the disallowance u/s 14A of the Act. Therefore, we see no reason to interfere with the order of the CIT (A).

3.

In the result, Revenue’s appeal is dismissed. Order pronounced in the Open Court on 25th May, 2018.

Sd/- Sd/- (B. Ramakotaiah) (P. Madhavi Devi) Accountant Member Judicial Member

Hyderabad, dated 25th May 2018. Vinodan/sps Copy to: 1 Dy.CIT, Circle 16(2), 2nd Floor, B Block, IT Towers, AC Guards, Masab Tank, Hyderabad 2 M/s. Phoenix Infratech (India) Private Ltd, Plot No.1335, Road No.45, Jubilee Hills, Hyderabad 3 CIT (A)-4 Hyderabad 4 Pr. CIT – 4 Hyderabad 5 The DR, ITAT Hyderabad 6 Guard File

By Order

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