PRAVEEN BUILDING CONSTRUCTION COMPANY PVT. LTD., NEW DELHI V. ITO, WARD- 20(1), NEW DELHI

ITA 1223/DEL/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 6861 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-07-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 21-02-2018
• 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 : SMC : NEW DELHI BEFORE SHRI R.S. SYAL, VICE PRESIDENT ITA NO.1223/DEL/2018 ASSESSMENT YEAR : 2013-14 PRAVEEN BUILDING CONSTRUCTION CO. PVT. LTD., 110, JINDALS, BABAR ROAD, NEW DELHI. PAN: AAACP0641D VS. ITO, WARD-20(1), NEW DELHI. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI SHAILESH GUPTA, ADVOCATE DEPARTMENT BY : SHRI ATIQ AHMED, SR. DR DATE OF HEARING : 24.07.2018 DATE OF PRONOUNCEMENT : 25.07.2018 ORDER THIS APPEAL FILED BY THE ASSESSEE ARISES OUT OF TH E ORDER PASSED BY THE CIT(A) ON 18.01.2018 IN RELATION TO THE ASSESSMENT YEAR 2013-14. 2. THE ASSESSING OFFICER HAS MADE A DISALLOWANCE OF RS.37,019/- BY INVOKING THE PROVISIONS OF RULE 8D READ WITH SECTIO N 14A WHICH HAS BEEN ITA NO.1223/DEL/2018 2 UPHELD BY THE LD.CIT(A). THE ASSESSEE IS IN APPEAL AGAINST SUCH CONFIRMATION OF ADDITION. 3. HAVING HEARD BOTH THE SIDES AND PERUSED THE RELE VANT MATERIAL ON RECORD, IT IS OBSERVED FROM THE ASSESSMENT ORDER TH AT NO EXEMPT INCOME WAS EARNED BY THE ASSESSEE DURING THE YEAR. THE HONBL E JURISDICTIONAL HIGH COURT IN CHEMINVEST LTD. VS. CIT (2015) 378 ITR 33 (DEL) AND CIT VS. HOLCIM INDIA P. LTD. (2014) 90CCH 081-DEL-HC HAS HELD THAT IF THERE IS NO EXEMPT INCOME, THERE CAN BE NO QUESTION OF MAKING A NY DISALLOWANCE U/S 14A. IN VIEW OF THESE PRECEDENTS, WHICH ARE SQUARE LY APPLICABLE TO THE FACTS OF THE INSTANT CASE, I HOLD THAT THE LD. CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE DISALLOWANCE. WE, THEREFORE, ORDER TO DELETE TH E ADDITION. 4. IN THE RESULT, THE APPEAL IS ALLOWED. THE DECISION WAS PRONOUNCED IN THE OPEN COURT ON 2 5 TH JULY, 2018. SD/- [R.S. SYAL] VICE PRESIDENT DATED, 25 TH JULY, 2018. DK ITA NO.1223/DEL/2018 3 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.