ACIT, Ludhiana V. M/s Chadha Super Cars Pvt. Ltd., Ludhiana

ITA 1056/CHANDI/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 9970 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 5 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-05-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 07-12-2015
• Assessment Year: 2011-2012
• Appeal Filed On: 28-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMIT RAJDR
• Assessee Lawyers: KULDEEP SINGH
• Section: 14A; 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH,CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND MS.RANO JAIN, ACCOUNTANT MEMBER ITA NO. 1056/CHD/2014 ASSESSMENT YEAR: 2011-12 THE ACIT, VS M/S CHADHA SUPER CARS P.LTD., CIRCLE - V, G.T. ROAD, JUGIANA, LUDHIANA. LUDHIANA . PAN: AABCC6944R (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI AMIT RAJ,DR RESPONDENT BY : SHRI KULDEEP SINGH DATE OF HEARING : 10.05.2016 DATE OF PRONOUNCEMENT : 10.05.2016 O R D E R PER BHAVNESH SAINI,JM THIS APPEAL BY REVENUE HAS BEEN DIRECTED AGAINST T HE ORDER OF LD. CIT(APPEALS)-II, LUDHIANA DATED 05.09. 2014 FOR ASSESSMENT YEAR 2011-12, CHALLENGING THE DELETION O F ADDITION OF RS. 39,85,335/- UNDER SECTION 14A OF TH E INCOME TAX ACT. 2. THE LD. CIT(APPEALS) WHILE CONSIDERING THE ABOVE ISSUE, NOTED IN HIS FINDINGS THAT THE ASSESSEE DID NOT HAVE ANY TAX FREE INCOME FROM THE INVESTMENTS, THE QUEST ION OF DISALLOWANCE UNDER SECTION 14A DOES NOT ARISE. HE HAS FURTHER NOTED THAT ISSUE IS COVERED BY DECISION OF HON'BLE PUNJAB & HARYANA HIGH COURT IN THE CASE OF CIT VS LAKSHMI MARKETING DATED 02.04.2014. THE LD. CIT(APPEALS), THEREFORE, DELETED THE ADDITION OF RS . 2 39,85,335/- UNDER SECTION 14A OF THE INCOME TAX ACT AND ALLOWED THE APPEAL OF THE ASSESSEE. THE REVENUE IS IN APPEAL. 3. THE LD. CIT(APPEALS)-II LUDHIANA, LATER ON FOUND THAT THE ASSESSEE HAD RECEIVED SHARE OF PROFITS FROM THE FIRM M/S CHADHA MOTORS AMOUNTING TO RS. 72,292/-. THIS INCOME WAS CLAIMED AS EXEMPT BY THE ASSESSEE. THE LD. CIT(APPEALS), THEREFORE, FOUND THAT THERE IS A MIST AKE APPARENT FROM RECORD AND ACCORDINGLY, RECTIFIED THE SAME VIDE ORDER DATED 05.09.2014 AND DISALLOWANCE MADE B Y THE ASSESSING OFFICER WAS CONFIRMED AND THIS GROUND OF APPEAL OF THE ASSESSEE WAS DISMISSED VIDE ORDER DATED 22.0 1.2015 UNDER SECTION 154 OF THE INCOME TAX ACT. THE ASSES SEE IS IN APPEAL AGAINST THE ORDER UNDER SECTION 154 OF TH E INCOME TAX ACT BEFORE THE TRIBUNAL IN ITA 302/2015 WHICH IS ADJOURNED ON THE REQUEST OF THE LD. COUNSEL FOR THE ASSESSEE TO 28.07.2016. 4. IN THIS VIEW OF THE MATTER, IT IS CLEAR THAT THE DEPARTMENTAL APPEAL HAS BECOME INFRUCTUOUS. THE GRIEVANCE OF THE DEPARTMENT IN THE PRESENT APPEAL W AS AGAINST THE ORDER OF LD. CIT(APPEALS) IN DELETING T HE ADDITION OF RS. 39,85,335/- UNDER SECTION 14A OF TH E INCOME TAX ACT VIDE ORDER DATED 05.09.2014. THE LD . CIT(APPEALS) IN THE ORDER UNDER SECTION 154 OF THE INCOME TAX ACT DATED 22.01.2015 REVERSED HIS FINDINGS ON T HE SAME ISSUE AND CONFIRMED THE ADDITION OF RS. 39,85, 335/- BY RECTIFYING THE EARLIER ORDER DATED 05.09.2014 AG AINST 3 WHICH ASSESSEE IS IN APPEAL IN ITA 302/2015. THUS, DEPARTMENTAL APPEAL HAS BECOME INFRUCTUOUS AND GRIE VANCE OF THE REVENUE HAS ALREADY BEEN MET BY THE LD. CIT( APPEALS) IN THE ORDER U/S154 OF THE INCOME TAX ACT. ACCORDI NGLY, DEPARTMENTAL APPEAL IS DISMISSED BEING INFRUCTUOUS. 5. IN THE RESULT, DEPARTMENTAL APPEAL IS DISMISSED BEING INFRUCTUOUS. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (RANO JAIN) (BHAV NESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 10 TH MAY, 2016. POONAM COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT(A), THE CIT, DR ASSISTANT REGISTRAR, ITAT/CHD