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Income Tax Appellate Tribunal, ‘D’ BENCH: CHENNAI
Before: SHRI GEORGE MATHAN & SHRI INTURI RAMA RAO
आदेश / O R D E R
PER GEORGE MATHAN, JUDICIAL MEMBER:
ITA No.316/chny/2018 is an appeal filed by the Revenue, against the Order of the Commissioner of Income Tax (Appeals)-15, Chennai, in ITA No.381/2016-17/C.I.T(A)-15 dated 28.09.2017 for assessment year 2014-15. is an appeal filed by the assessee against the Order of the Commissioner of Income Tax (Appeals)-15, Chennai, in ITA No.220/2017-18/C.I.T(A)-15 dated 31.12.2018 for assessment year 2015-16. Since, the assessee in all these appeals is common, the appeals are heard together and disposed off by the common order.
Mr.M.S.Nethrapal represented on behalf of the Revenue and Mr.T.N.Seetharaman represented on behalf of the assessee.
ITA No.316/chny/2018 (Revenue’s appeal)
The only issue raised in the appeal of Revenue was against the action of ld.CIT(A) in deleting the addition made by Assessing Officer holding that as the assessee did not earn any dividend income, no disallowance was called for u/s.14A r.w.Rule 8D of Income Tax Rules,1962 following the decision of Hon’ble Jurisdictional High Court in the case of SN Damani Infra P Ltd :- 3 -:
Redington (India) Ltd Vs. ACIT in (2017) 392 ITR 633(Mad). The ld.D.R strongly supported the order of Assessing Officer.
In reply, the ld.AR submitted that now the issue was squarely covered by the decision of Hon’ble Jurisdictional High Court in the case of M/s.Chettinad Logistics P. Ltd., in [2017] 80 Taxmann.com 221(Mad).
We have heard the rival contentions and perused the material available on record. As it is noticed that ld.CIT(A) has followed the judicial discipline by following the principles laid down by the Hon’ble Jurisdictional High Court in the case of Redington (India) Ltd., referred to supra and as the assessee has not earned any dividend income, no disallowance u/s.14A r.w.Rule 8D is called for and the order of the ld. CIT(A) on this issue stands upheld. & 612/chny/19 (Assessee’s appeals)
It was submitted by the ld.AR that the issue was as to whether the rent received by the assessee from letting out of the properties / ware houses owned by it, was liable to be treated as income under the head “income from house property” or under the head “business income”. It was submitted that ld.CIT(A) had in the course of hearing on 26.12.2018 for assessment year 2015-16, called for certain details being the copy of Memorandum & Articles of Association of assessee company, Lease
SN Damani Infra P Ltd :- 4 -:
Agreement etc. and the assessee had vide letter dated 31.12.2018 provided the copy of the same to the ld.CIT(A). It was a submission that ld.CIT(A) had passed the order for assessment year 2015-16 by holding assessee has not provided the details. Before us, ld.AR submitted a copy letter dated 31.12.2018 wherein the acknowledgement seal of the ld.CIT(A)”s office is available. It was a prayer that he had no objection, if the issues raised in these appeals being identical for assessment years 2014-15 & 2015-16 were restored to the file of ld.CIT(A) for re-adjudication.
In reply, the ld.DR strongly supported the orders of the ld.CIT(A) and the Assessing Officer.
We have heard the rival contentions and perused the material available on record. As it is noticed that the assessee has filed the details called for by the ld.CIT(A) on 31.12.2018, and the ld.CIT(A) has decided the appeal on 31.12.2018 for assessment year 2015-16 without considering the evidences submitted by the assessee, in the interest of justice, the issues raised in both the appeals of the assessee are restored to the file of ld.CIT(A) for re-adjudication after granting adequate opportunity of being heard.
SN Damani Infra P Ltd :- 5 -:
In the result, the appeal of Revenue is dismissed and both the appeals of the assessee are partly allowed for statistical purposes.
Order pronounced on the 22nd August, 2019 in Chennai.