Embee Financial Services Ltd., Chandigarh V. DCIT, C-3(1), Chandigarh

ITA 1101/CHANDI/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 4712 (ITAT-CHANDIGARH)
• Duration Of Justice: 11 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-08-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 10-05-2019
• Assessment Year: 2013-2014
• Appeal Filed On: 24-08-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: POONAM SHARMA SR DR
• Assessee Lawyers: YOGESH MONGACA
• Keywords: Earning of tax free income
• Section: 14A

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BEN CH A, CHANDIGARH !, ' # . %.., & , '( # BEFORE: MS. DIVA SINGH, JM & DR. B.R.R. KUMAR, AM ITA NO. 1101/CHD/2018 ASSESSMENT YEAR : 2013-14 EMBEE FINANCIAL SERVICES LTD. CA YOGESH MONGA C/O DATTA SINGALA AND CO. SCO 2935-36, 1 ST FLOOR, SECTOR 22-C CHANDIGARH DCIT, C-3(1) CHANDIGARH PAN NO: AAACE3914C APPELLANT RESPONDENT !' ASSESSEE BY : SH. YOGESH MONGA,CA #!' REVENUE BY :SMT. POONAM SHARMA, SR. DR $ %! & DATE OF HEARING : 10/05/2019 '()*! & DATE OF PRONOUNCEMENT : 05/08/2019 ')/ ORDER PER DR. B.R.R. KUMAR, A.M THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE A GAINST THE ORDER OF THE LD. CIT(A)-4, LUDHIANA DT. 22/06/2018. 2. IN THE PRESENT APPEAL ASSESSEE HAS RAISED THE FO LLOWING GROUNDS: 1. THAT THE ORDER OF LD. CIT(A) IS BAD AND AGAINST THE FACTS & LAW. 2. THAT THE LD. CIT(A) HAS WRONGLY UPHELD THE ORDE R OF LEARNED ASSESSING OFFICER OF DISALLOWANCE, AMOUNTING RS. 8,48,607/-, UNDER SECTION 14A OF THE INCOME TAX ACT. 3. THAT THE APPELLANT CRAVES LEAVE TO ADD OR AMEND THE GROUNDS OF APPEAL BEFORE THE APPEAL IS FINALLY HEARD AND DISPOSED OFF . 3. STRAIGHT TO THE CORE ISSUE OF THE APPEAL INVOLV ED IS THAT THE ASSESSEE HAS EARNED EXEMPT INCOME OF RS.81,190/- AND ID. CIT(A) HAS CONFIRMED THE DISALLOWANCE MADE BY THE ASSESSING OFFICER OF RS.84 8607/- U/S. 14A. THE AO HAS DISALLOWED RS.469738/- U/R 8D(2)(II) AND RS.378869/ - U/R. 8D(2)(III). 4. WE HAVE GONE THROUGH THE FACTS OF THE CASE AND T HE JUDGMENTS IN THE CASE OF FUTURE CORPORATE RESOURCES LTD. (ITAT MUM), ITA NO. 4659/MUM/2015 A.Y. 2011-12, CIT VS. HOLCIM INDIA PVT. LTD., 272 C TR (DELHI) AND EMPIRE PACKAGE PVT. LTD., 286 CTR 457 (P&H) AND HAVE COME TO THE C ONCLUSION THAT THE DISALLOWANCE U/S 14A CANNOT EXCEED THE EXEMPT INCOM E EARNED BY THE ASSESSEE. ACCORDINGLY, WE ARE OF THE VIEW THAT IN T HE PECULIAR FACTS AND CIRCUMSTANCES OF THE PRESENT CASE, WE RESTRICT THE DISALLOWANCE TO THE EXEMPT INCOME OF RS. 81,190/- THEREBY GRANTING PART RELIEF TO THE ASSESSEE IN TERMS OF THE SETTLED LEGAL POSITION AS ON DATE. 5. AS A RESULT, THE APPEAL IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- ! . %.., & , (DIVA SINGH ) ( DR. B.R.R. KUMA R, AM) ' #/ JUDICIAL MEMBER '( #/ ACCOUNTANT MEMBER AG 05/08/2019 (+! ,-.- COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. $ / CIT 4. $ / 01 THE CIT(A) 5. -2 45&456789 DR, ITAT, CHANDIGARH 6. 8:% GUARD FILE (+ $ BY ORDER, ; # ASSISTANT REGISTRAR