ACIT, New Delhi V. M/s. RDS Project Ltd., New Delhi

ITA 105/DEL/2015

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 3116 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 1 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2011-2012
• Appeal Filed On: 07-01-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Earning of tax free income
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : F NEW DELHI BEFORE SHRI R.K.PANDA , ACCOUNTANT MEMBER AND SMT. BEENA A PILLAI, JUDICIAL MEMBER ITA NO. 105 /DEL/2015 A.Y. 201 1 - 12 ACIT CIRCLE 20(2) NEW DELHI VS . RDS PROJECT LTD. 427, SOMDUTT CHAMBERS II 9 BHIKAJI CAMA PLACE NEW DELHI 110 066 PAN: AAACR 4761 J (APPELLANT) (RESPONDENT) APPELLANT BY SH. ATIQ AHMAD, SR.D.R. RESPONDENT BY SH. SOMIL AGRAWAL, ADV. DATE OF HEARING 12.02. 2018 DATE OF PRONOUNCEMENT ORDER PER BEENA A PILLAI, JUDICIAL MEMBER T HE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE AGAINST ORDER DATED 01/10/14 PASSED BY LD. CIT (A) 17, NEW DELHI FOR ASSESSMENT YEAR 2011 - 12 ON THE FOLLOWING GROUNDS OF APPEAL: 1. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD.CIT(A) HAS ERRED IN DELETING ADDITION OF RS.35,82,713/ - MADE U/S 14A OF THE ACT. ITA 105/DEL/2015 A.Y. 2011 - 12 ACIT VS. RDS PROJECT LTD. 2 2. THAT APPELLANT CRAVES TO BE ALLOWED TO ADD ANY FRESH GROUNDS OF APPEAL AND/OR DELETE OR AMEND ANY OF THE GROUNDS OF APPEAL. 2. BRIEF FACTS OF THE CASE ARE AS UNDER . A SSESSEE FILED ITS RETURN OF INCOME ON 30/09/11 AND THE ASSESSMENT WAS COMPLETED BY MAKING AN ADDITION UNDER SECTION 14 A OF THE INCOME TAX A CT , 1961 (THE ACT) AMOUNTING TO RS.35,82,713/ - . 2.1. AGGRIEVED BY THE ORDER OF LD. AO ASSESSEE PREFERRED APPEAL BEFORE THE LD. CIT (A). LD.CIT (A) WHILE DECIDING THE ISSUE OBSERVED THAT ASSESSEE HAS NOT EARNED ANY EXEMPT INCOME DURING THE YEAR UNDER CONSIDERATION AND THEREFORE INVOKING OF SECTION 14 A OF THE ACT IS TOTALLY UNCALLED FOR. HE THUS DELETED THE ADDITION MADE BY LD. AO. 2.2. AGGRIEVED BY THE ORDER OF LD. CIT (A), REVENUE IS IN APPEAL BEFORE US NOW. 2.3. AT THE OUTSET LD. C OUNSEL PLACE D RELIANCE UPON THE DECISION OF HON BLE DELHI HIGH COUR T IN THE CASE OF CHEMINVEST LTD V S. CIT REPORTED IN 378 ITR 33 WHEREIN IT HAS BEEN HELD THAT NO DISALLOWANCE UNDER SECTION 14 A OF THE ACT COULD BE MADE IF THERE IS NO EXEMPT INCOME EARNED BY ASSESSEE FOR THE YEAR UNDER CONSIDERATION. ITA 105/DEL/2015 A.Y. 2011 - 12 ACIT VS. RDS PROJECT LTD. 3 2.4. LD. DR COULD NOT CONTROVERT THE FINDINGS OF LD. CIT (A) IN RESPECT OF ABSENCE OF EXEMPT INCOME FOR THE YEAR UNDER CONSIDERATION . 2.5. WE , THEREFORE , IN THE CONSIDERED OPINION RESPECTFULLY FOLLOWING THE DECISION OF HON BLE DELHI HIGH COURT IN THE CASE OF CHEMINVEST LTD VERSUS CIT (SUPRA), DO NOT FIND ANY INFIRMITY IN THE ORDER OF LD. CIT (A) AND THE SAME IS UPHELD. ACCORDINGLY GROUND RAISED BY THE REVENUE STANDS DISMISSED. 3. IN THE RESULT APPEAL FILED BY REVENUE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 2 8 . 0 2 . 2 0 1 8 . S D / - S D / - ( R.K.PANDA ) (BEENA A PILLAI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 2 8 T H FEBRUARY, 2018. *MV ITA 105/DEL/2015 A.Y. 2011 - 12 ACIT VS. RDS PROJECT LTD. 4 COPY OF THE ORDER FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR 6. GUARD FILE BY ORDER ASST. REGISTRAR ITAT, DELHI BENCHES, NEW DELHI