Ms. Amita Verma, Delhi V. ACIT, New Delhi

ITA 1147/DEL/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 8044 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-04-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 26-04-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 27-02-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAVI JAIN
• Keywords: Sale consideration of property below Jantri Value; Earning of tax free income
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH A AA A : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI BEFORE SHRI BEFORE SHRI BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT AND AND AND AND SHRI SUDHANSHU SRIVASTAVA SHRI SUDHANSHU SRIVASTAVA SHRI SUDHANSHU SRIVASTAVA SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER ITA NO ITA NO ITA NO ITA NO S SS S . .. . 1145/DEL/2013, 1146/DEL/2013, 1147/DEL/2013, 1145/DEL/2013, 1146/DEL/2013, 1147/DEL/2013, 1145/DEL/2013, 1146/DEL/2013, 1147/DEL/2013, 1145/DEL/2013, 1146/DEL/2013, 1147/DEL/2013, 1148/DEL/2013 & 1149/DEL/2013 1148/DEL/2013 & 1149/DEL/2013 1148/DEL/2013 & 1149/DEL/2013 1148/DEL/2013 & 1149/DEL/2013 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR S SS S : : : : 2006 2006 2006 2006 - -- - 07, 2007 07, 2007 07, 2007 07, 2007 - -- - 08, 2008 08, 2008 08, 2008 08, 2008 - -- - 09, 2009 09, 2009 09, 2009 09, 2009 - -- - 10 & 2010 10 & 2010 10 & 2010 10 & 2010 - -- - 11 1111 11 MS. AMITA VERMA, MS. AMITA VERMA, MS. AMITA VERMA, MS. AMITA VERMA, A AA A- -- -6, DERAWAL NAGAR, 6, DERAWAL NAGAR, 6, DERAWAL NAGAR, 6, DERAWAL NAGAR, MODEL TOWN, MODEL TOWN, MODEL TOWN, MODEL TOWN, DELHI DELHI DELHI DELHI 110 009. 110 009. 110 009. 110 009. PAN : AAHPV3250C. PAN : AAHPV3250C. PAN : AAHPV3250C. PAN : AAHPV3250C. VS. VS. VS. VS. ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -13, 13, 13, 13, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) ITA NO ITA NO ITA NO ITA NO .1275/DEL/2013 .1275/DEL/2013 .1275/DEL/2013 .1275/DEL/2013 ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : 2007 2007 2007 2007 - -- - 08 0808 08 DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -13, 13, 13, 13, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. VS. VS. VS. VS. MS. AMITA VERMA, MS. AMITA VERMA, MS. AMITA VERMA, MS. AMITA VERMA, A AA A- -- -6, DERAWAL NAGAR, 6, DERAWAL NAGAR, 6, DERAWAL NAGAR, 6, DERAWAL NAGAR, MODEL TOWN, MODEL TOWN, MODEL TOWN, MODEL TOWN, DELHI DELHI DELHI DELHI 110 009. 110 009. 110 009. 110 009. PAN : AAHPV3250C. PAN : AAHPV3250C. PAN : AAHPV3250C. PAN : AAHPV3250C. (APPELLANT) (RESPONDENT) ASSESSEE BY : S HRI SANAT KAPOOR, ADVOCATE AND SHRI DIVYANSHU AGRAWAL, CA. REVENUE BY : SHRI RAVI JAIN, CIT - DR. DATE OF HEARING : 26.04.2016 26.04.2016 26.04.2016 26.04.2016 DATE OF PRONOUNCEMENT : 27.04.2016 27.04.2016 27.04.2016 27.04.2016 ORDER ORDER ORDER ORDER PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP : :: :- -- - THESE APPEALS BY THE ASSESSEE AND THE REVENUE ARE DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-1, NEW DELHI DA TED 20 TH DECEMBER, 2012. ITA-1145/DEL/2013 & 5 OTHERS 2 2. IN ALL THESE APPEALS, THE COMMON QUESTION IS WIT H REGARD TO DISALLOWANCE U/S 14A OF THE INCOME-TAX ACT, 1961. FOR ASSESSMENT YEAR 2007-08, LEARNED CIT(A) PARTLY REDUCED THE DIS ALLOWANCE U/S 14A AND, THEREFORE, THE REVENUE IS IN APPEAL AGAINST TH E RELIEF ALLOWED WHILE THE ASSESSEE IS IN APPEAL AGAINST THE DISALLO WANCE MADE. IN ALL OTHER YEARS, LEARNED CIT(A) SUSTAINED THE DISALLOWA NCE U/S 14A, THEREFORE, ONLY THE ASSESSEE IS IN APPEAL. 3. AT THE TIME OF HEARING BEFORE US, LEARNED COUNSE L FOR THE ASSESSEE STATED THAT NO DIVIDEND INCOME WAS RECEIVE D BY THE ASSESSEE IN ANY OF THE YEARS UNDER APPEAL AND, THEREFORE, SI NCE THERE WAS NO EXEMPT INCOME, THERE CANNOT BE ANY DISALLOWANCE U/S 14A. IN SUPPORT OF THIS CONTENTION, HE RELIED UPON THE DECISION OF HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF CHEMINVEST LIMITED VS. CI T-VI VIDE ITA NO.749/2014, ORDER DATED 2 ND SEPTEMBER, 2015. 4. LEARNED CIT-DR, ON THE OTHER HAND, RELIED UPON T HE ORDER OF THE ASSESSING OFFICER. 5. WE HAVE CAREFULLY CONSIDERED THE SUBMISSIONS OF BOTH THE SIDES AND PERUSED THE MATERIAL PLACED BEFORE US. WE FIND THAT THE ASSESSEE CONTENDED BEFORE THE ASSESSING OFFICER ALSO THAT SI NCE THERE IS NO EXEMPT INCOME, NO DISALLOWANCE U/S 14A CAN BE MADE. THE ASSESSING OFFICER REJECTED THE ASSESSEES CONTENTION BY RELYI NG UPON THE DECISION OF ITAT SPECIAL BENCH IN THE CASE OF CHEMINVEST LTD . VS. ITO [2009] 317 ITR (AT) 86 (DELHI)(SB). IT WOULD BE EVIDENT F ROM PAGE 3 PARAGRAPH 3 OF THE ASSESSMENT ORDER DATED 30 TH DECEMBER, 2011 FOR ASSESSMENT YEAR 2006-07. HOWEVER, THE ABOVE DECISI ON OF ITAT DELHI BENCH RELIED UPON BY THE ASSESSING OFFICER HAS BEEN REVERSED BY HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF CH EMINVEST LIMITED (SUPRA), WHEREIN THEIR LORDSHIPS HELD AS UNDER:- ITA-1145/DEL/2013 & 5 OTHERS 3 23. IN THE CONTEXT OF THE FACTS ENUMERATED HEREINB EFORE THE COURT ANSWERS THE QUESTION FRAMED BY HOLDING TH AT THE EXPRESSION DOES NOT FORM PART OF THE TOTAL INCOME IN SECTION 14A OF THE ENVISAGES THAT THERE SHOULD BE A N ACTUAL RECEIPT OF INCOME, WHICH IS NOT INCLUDIBLE I N THE TOTAL INCOME, DURING THE RELEVANT PREVIOUS YEAR FOR THE P URPOSE OF DISALLOWING ANY EXPENDITURE INCURRED IN RELATION TO THE SAID INCOME. IN OTHER WORDS, SECTION 14A WILL NOT APPLY IF NO EXEMPT INCOME IS RECEIVED OR RECEIVABLE DURING T HE RELEVANT PREVIOUS YEAR. 6. THE REVENUE HAS NOT DISPUTED THE FACT THAT DURIN G THE YEAR UNDER CONSIDERATION, THE ASSESSEE HAS NO EXEMPT INC OME AND, THEREFORE, THE RATIO OF THE ABOVE DECISION OF HON'B LE JURISDICTIONAL HIGH COURT WOULD BE SQUARELY APPLICABLE. THE IDENTICAL FINDING IS RECORDED BY THE ASSESSING OFFICER IN EACH YEAR I.E., EVERY Y EAR, THE ASSESSING OFFICER MADE THE DISALLOWANCE U/S 14A DESPITE EARNI NG OF NO EXEMPT INCOME BY THE ASSESSEE RELYING UPON THE DECISION OF ITAT IN CHEMINVEST LTD. (SUPRA). SINCE THE ABOVE DECISION OF ITAT RELIED UPON BY THE ASSESSING OFFICER HAS BEEN REVERSED BY HON'B LE JURISDICTIONAL HIGH COURT, WE, RESPECTFULLY FOLLOWING THE DECISION OF HON'BLE JURISDICTIONAL HIGH COURT, HOLD THAT NO DISALLOWANC E U/S 14A CAN BE MADE WHERE THERE IS NO EXEMPT INCOME. IN VIEW OF T HE ABOVE, THE ASSESSEES APPEALS FOR ALL THE YEARS ARE ALLOWED AN D THE REVENUES APPEAL IS DISMISSED. 7. IN THE RESULT, ALL THE APPEALS OF THE ASSESSEE A RE ALLOWED WHEREAS THE APPEAL OF THE REVENUE IS DISMISSED. DECISION PRONOUNCED IN THE OPEN COURT ON 27.04.2016 . SD/- SD/- (SUDHANSHU SRIVASTAVA (SUDHANSHU SRIVASTAVA (SUDHANSHU SRIVASTAVA (SUDHANSHU SRIVASTAVA ) )) ) ( (( ( G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL ) )) ) JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VK. ITA-1145/DEL/2013 & 5 OTHERS 4 COPY FORWARDED TO: - 1. ASSESSEE : MS. AMITA VERMA, MS. AMITA VERMA, MS. AMITA VERMA, MS. AMITA VERMA, A AA A- -- -6, DERAWAL NAGAR, MODEL TOWN, 6, DERAWAL NAGAR, MODEL TOWN, 6, DERAWAL NAGAR, MODEL TOWN, 6, DERAWAL NAGAR, MODEL TOWN, DELHI DELHI DELHI DELHI 110 009. 110 009. 110 009. 110 009. 2. REVENUE : DEPUTY COMMISSIONER OF INCOME TAX , DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -13, NEW DELHI. 13, NEW DELHI. 13, NEW DELHI. 13, NEW DELHI. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR