ACIT, COIMBATORE vs. KAVITHA RAJENDRAN, SALEM

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ITA 162/CHNY/2017Status: DisposedITAT Chennai28 April 2017AY 2011-123 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 Income Tax Appellate Tribunal (ITAT) dismissed all five appeals filed by the Revenue. The Tribunal noted that the tax effect in each appeal was less than Rs. 10 lakhs, falling below the monetary limit for filing appeals before the ITAT as per CBDT Circular No. 21/2015, which applies retrospectively.

What were the facts?

The Revenue filed appeals against the CIT(A)'s orders, which deleted disallowances made by the Assessing Officer under Section 14A read with Rule 8D. These disallowances were for expenditure relatable to dividend income claimed as exempt by the assessee across five assessment years.

What were the issues?

The key legal issue was the disallowance of expenditure related to exempt dividend income under Section 14A. However, the appeals were dismissed on the procedural ground that they did not meet the monetary limit for filing appeals before the ITAT as per CBDT instructions.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI

Before: SHRI N.R.S. GANESAN & SHRI D.S.SUNDER SINGH

Hearing: 27.04.2017

आदेश / O R D E R

PER D.S.SUNDER SINGH, ACCOUNTANT MEMBER:

These appeals are filed by the Revenue against the Orders dated 21.10.2016 of Commissioner of Income Tax (Appeals)-18, Chennai, in to 77/15-16 for the AYs 2009-10, 2010-11, 2011-12, 2012-13 & 2013-14. to 164/Mds/2017 :-2-:

2.0 Delay:

The Revenue filed appeals with delay of three days and the Ld.AO filed the condonation petition explaining the reason for delay. We heard both the parties and condoned the delay.

3.0 The assessee made investments in shares and securities and received the dividend income which was claimed as exemption. The Assessing Officer disallowed the expenditure relatable to the dividend income u/s.14A r/w Rule 8D of Income Tax Rules for the AYs as per the details given below:

Disallowance Case No. AY made (in Rs.) 2009-10 24,191 ITA No.161/Mds/2017 2010-11 24,554 ITA No.162/Mds/2017 2011-12 29,057 ITA No.163/Mds/2017 2012-13 36,532 ITA No.164/Mds/2017 2013-14 50,676

On hearing from the Ld.Departmental Representative, we find that the tax effect in the above appeals are less than Rs.10 lakhs. The CBDT in Circular No.21/2015 dated 10.12.2015 increased the monetary limit for filing appeal before this Tribunal from Rs.4 lakhs to Rs.10 lakhs. The CBDT further clarified that the Instruction dated 10.12.2015 will apply retrospectively to all the pending appeals before this Tribunal. The CBDT has also instructed its officers to withdraw the appeals pending before this Tribunal. In view of the above, this Tribunal is of the considered opinion that the Circular issued by the CBDT on 10.12.2015 is binding on the to 164/Mds/2017 :-3-: Department. Therefore, the appeal filed by the Revenue is not maintainable. Accordingly, the appeal of the Revenue is dismissed.

3.0 In the result, the above five appeals of the Revenue for the AYs 2009-10, 2010-11, 2011-12, 2012-13 & 2013-14 are dismissed.

Order pronounced in the Open Court on 28th April, 2017, at Chennai.

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