ACIT, New Delhi V. M/s. Super Plastic Coats Pvt. Ltd., New Delhi

ITA 1204/DEL/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 3609 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 8 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-11-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2011-2012
• Appeal Filed On: 04-03-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH E, NEW DELHI BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER ITA NO.1204/DEL/2016 ASSESSMENT YEAR : 2011-12 ACIT, CIRCLE- 24(2), NEW DELHI. VS. SUPER PLASTIC COATS PVT. LTD., 1, CENTRAL MARKET, WEST AVENUE, WEST PUNJABI BAGH, NEW DELHI. PAN : AAECS2311M (APPELLANT) (RESPONDENT) DEPARTMENT BY : SHRI KUMAR PARNAV, SR.DR ASSESSEE BY : NONE DATE OF HEARING : 17-11-2017 DATE OF PRONOUNCEMENT : 17-11-2017 O R D E R PER D. MANMOHAN, VP : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER PASSED BY THE LD. CIT(A)-8, NEW DELHI AND IT PERTAINS TO ASSESSMENT Y EAR 2011-12. 2. THE EFFECTIVE GROUND RAISED BY THE REVENUE READS AS UNDER :- 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) ERRED IN LAW AND ON THE FACTS IN RESTRICTING THE DISALLOWANCE OF EXPENS E U/S 14A READ WITH RULE 8D TO THE EXTENT OF RS.43,073/- OUT OF TOTAL ADDITION OF RS.4 7,00,415/- MADE BY THE AO. 3. IT IS NOT IN DISPUTE THAT THE ASSESSEE EARNED DI VIDEND INCOME OF RS.43,073/-. HOWEVER, THE ASSESSING OFFICER COMPUT ED THE EXPENDITURE BY 2 ITA NO.1204/DEL/2016 INVOKING THE PROVISIONS OF SECTION 14A READ WITH RU LE 8D AND ACCORDINGLY COMPLETED THE ASSESSMENT. 4. ON AN APPEAL FILED BY THE ASSESSEE, LD. CIT(A) F OLLOWED THE DECISION OF THE JURISDICTIONAL HIGH COURT IN THE CASE OF JOINT INVESTMENTS PVT. LTD. VS. CIT, 2015 (3) TMI 155, WHEREIN THE HONBLE HIGH COURT AL SO HELD THAT THE DISALLOWANCE SHOULD BE RESTRICTED TO THE EXEMPT DIV IDEND INCOME EARNED BY THE ASSESSEE. ACCORDINGLY, A DIRECTION WAS GIVEN BY TH E LD. CIT(A) TO THE ASSESSING OFFICER TO RESTRICT THE DISALLOWANCE TO RS.43,073/- . AGGRIEVED, THE REVENUE IS IN APPEAL BEFORE THE TRIB UNAL. 5. IT IS NOT IN DISPUTE THAT THE ISSUE IS SQUARELY COVERED BY THE JURISDICTIONAL HIGH COURT AND NO OTHER CONTRARY DECISION OF THE JU RISDICTIONAL HIGH COURT HAS BEEN PLACED BEFORE US. UNDER THESE CIRCUMSTANCES, WE HOLD THAT THE ORDER PASSED BY THE LD. CIT(A) DOES NOT CALL FOR ANY INTE RFERENCE AND THE APPEAL OF THE REVENUE IS ACCORDINGLY DISMISSED. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 17 TH DAY OF NOVEMBER, 2017. SD/- SD/- (MANOJ KUMAR AGGARWAL) (D . MANMOHAN) ACCOUNTANT MEMBER VICE PRESIDENT DATED: 17-11-2017. SUJEET 3 ITA NO.1204/DEL/2016 COPY OF ORDER TO: - 1) THE APPELLANT 2) THE RESPONDENT 3) THE CIT 4) THE CIT(A) 5) THE DR, I.T.A.T., NEW DELHI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, NEW DELHI