ADDL. CIT., SPECIAL RANGE- 9, NEW DELHI V. TOURISM FINANCE CORPORATION OF INDIA LTD., NEW DELHI

ITA 5327/DEL/2018

AI Insights

The case involves an appeal by the Revenue against the order of the Commissioner of Income-tax (Appeals)-9, New Delhi, which had deleted the disallowance made under section 14A of the Income Tax Act, 1961 by the Assessing Officer. The disallowance pertained to expenses related to income not chargeable to tax. The Tribunal noted that similar issues had been addressed in previous assessment years (2012-13 and 2014-15) where the Revenue's appeals were dismissed on the grounds that the Assessing Officer had not properly satisfied the requirements of section 14A(2). The Tribunal found that the facts and circumstances of the case remained unchanged from those previous years, leading to the conclusion that the First Appellate Authority's decision was correct.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 474544 (ITAT-DELHI)
• Duration Of Justice: 6 year(s) 1 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-10-2024
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 03-10-2024
• Assessment Year: 2013-2014
• Appeal Filed On: 09-08-2018
• Other Referred Cases: ITA No.3916/Del/2018, ITA No.6837/Del/2017
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: MANISH TIWARI
• Keywords: Earning of tax free income
• Section: 143(3); 14A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : G : NEW DELHI BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER AND SHRI ANUBHAV SHARMA, JUDICIAL MEMBER ITA No.5327/Del/2018 Assessment Year: 2013-14 Addl. CIT, Special Range-9, New Delhi. Vs Tourism Finance Corporation of India Ltd., 13th Floor, IFCI Towers, 61, Nehru Place, New Delhi – 110 019. PAN: AAACT0706D (Appellant) (Respondent) Assessee by : None Revenue by : Shri Manish Tiwari, Sr. DR Date of Hearing : 03.10.2024 Date of Pronouncement : 03.10.2024 ORDER PER ANUBHAV SHARMA, JM: This appeal is preferred by the Revenue against the order dated 10.05.2018 of the Commissioner of Income-tax (Appeals)-9, New Delhi (hereinafter referred to as Ld. First Appellate Authority or in short Ld. ‘FAA’) in Appeal No.117/2016-17 arising out of the appeal before it against the order dated 14.03.2016 passed u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) by the JCIT, Range-25, New Delhi (hereinafter referred to as the Ld. AO). ITA No.5327/Del/2018 2 2. Heard and perused the record. As the case was called for hearing, none has appeared for the assessee and the record shows that notices issued have been received back with the report that the assessee had left without address. 3. The only issue for consideration is the disallowance made u/s 14A of the Act r.w.r 8D, by the AO as stands, deleted by the ld.CIT(A). 4. The ld. DR submitted that the ld.CIT(A) has erred in deleting the addition. However, what we find is that the AO had made the addition u/s 14A of the Act following the assessment order of AY 2012-13 and there is a paper book on record filed on behalf of the assessee on earlier occasion in which there is an order of the coordinate Bench in ITA No.3916/Del/2018 for AY 2014-15, order dated 08.10.2021 and in ITA No.6837/Del/2017 for AY 2012-13, order dated 28.02.2022 where also the appeals of the Revenue were dismissed for the reason that the conclusion of the ld.CIT(A) that the AO has not recorded a proper satisfaction in terms of section 14A(2) of the Act as to why the disallowance made by the assessee is incorrect having regard to its books of account. 5. In the present assessment year also the ld.CIT(A) observed that the company had not made any fresh investment during the year in any instrument giving exempt income. The ld.CIT(A) has also taken into consideration the fact that in AYs 2014-15 and 2012-13, the ld. FAA has held that the assessee had ample non-interest bearing funds of its own which were invested in the investment which have resulted in income not chargeable to tax and, therefore, ITA No.5327/Del/2018 3 the disallowance on account of interest has been deleted in both the years. The facts and the position remained the same in this year. 6. In the light of the aforesaid, we are of the considered view that there is no error in the conclusion drawn by the ld.CIT(A) and the grounds of the Revenue have no substance. The appeal of the Revenue is dismissed. Order pronounced in the open court on 03.10.2024. Sd/- Sd/- (PRADIP KUMAR KEDIA) (ANUBHAV SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 03rd October, 2024. dk Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asstt. Registrar, ITAT, New Delhi "