Amit Gupta, New Delhi V. ACIT, Circle- 19(1), New Delhi

ITA 127/DEL/2018

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 2720 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 1 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-02-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 04-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: AGAINST DATED PASSED
• Keywords: Earning of tax free income; Rule 8D
• Section: 14A; 28

Judgement Text

1 ITA NO. 127/DEL/2018 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: A NEW DELHI BEFORE MS SUCHITRA KAMBLE, JUDICIAL ME MBER AND DR. B. R. R. KUMAR, ACC OUNTANT MEMBER I.T.A. NO. 127/DEL/201 8 (A.Y 2014-15) (THROUGH VIDEO CON FERENCING) AMIT GUPTA C-3/260, JANAKPURI, NEW DELHI AFJPG9771Q (APPELLANT) VS ACIT CIRCLE-19(1) C. R. BUILDING, NEW DELHI (RESPONDENT) ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE O RDER DATED 12/10/2017 PASSED BY CIT(A)-7, NEW DELHI FOR ASSESSMENT YEAR 2 014-15. 2. THE GROUNDS OF APPEAL ARE AS UNDER:- 1. THE CIT HAS ERRED IN LAW AND FACTS CONFIRMING T HE ORDER OF THE AO WHEREIN HE HAS MADE ADDITION OF RS. 4,05,684/- BY INVOKING THE PROVISIONS OF SECTION 14A READ WITH RULE 8D(2)(III) OF THE INCOME TAX ACT . 2. THE CIT WHILE CONFIRMING THE ORDER OF THE AO HAS GROSSLY FAILED TO APPRECIATE THAT THE PROVISIONS OF SECTION 14A SHALL NOT BE APPLICABLE IN THIS CASE. APPELLANT BY SH. MAHESH KUMAR, CA & MS. HASNEETA MASHA, CA RESPONDENT BY SH. V. K. KATARIA, SR DR DATE OF HEARING 18.02.2021 DATE OF PRONOUNCEMENT 18.02.2021 2 ITA NO. 127/DEL/2018 3. THE CIT WHILE CONFIRMING THE ORDER OF THE AO HAS GROSSLY FAILED TO CONSIDER THE RATIO OF THE DECISION OF HON'BLE DELHI HIGH COU RT IN THE CASE OF MAXOPP INVESTMENT LTD. VS. CIT - [2011] 203 TAXMANN 364 (D ELHI). 3. THE ASSESSEE COMPANY E-FILED ITS RETURN OF INCOM E FOR ASSESSMENT YEAR 2014-15 ON 19/12/2014 DECLARING TOTAL INCOME OF RS. 1,46,58,320/-. THE ASSESSMENT WAS PASSED ON 29/11/2016 THEREBY ASSESSI NG THE INCOME AT RS. 1,50,64,000/-AFTER MAKING DISALLOWANCE OF RS.4,05,6 84/- U/S 14A READ WITH RULE 8D OF THE INCOME TAX RULES, 1962. 4. BEING AGGRIEVED BY THE ASSESSMENT ORDER THE ASSE SSEE FILED APPEAL BEFORE THE CIT (A). THE CIT (A) DISMISSED THE APPEAL OF T HE ASSESSEE. 5. THE LD. AR SUBMITTED THAT THE ASSESSEE HAS NOT E ARNED ANY DIVIDEND INCOME AND HENCE PROVISIONS OF SECTION 14A ARE NOT APPLICABLE IN ASSESSEES CASE. THE LD. AR FURTHER SUBMITTED THAT NO EXPENS ES WAS CLAIMED BY THE ASSESSEE DURING THE PRESENT ASSESSMENT YEAR. THE LD. AR SUBMITTED THAT THERE IS A DELAY OF 5 DAYS IN FILING THE PRESENT AP PEAL. THE LD. AR RELIED UPON THE DECISIONS OF THE HONBLE DELHI HIGH COURT IN CA SE OF CHEMINVEST LTD. VS. CIT 61 TAXMAN.COM 118 AND CIT VS. HOLCIM LTD. 57 TA XMAN 28. 6. THE LD. DR RELIED UPON THE ASSESSMENT ORDER AND THE ORDER OF THE CIT(A). 7. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL AVAILABLE ON RECORD. FROM THE ASSESSMENT ORDER AS WELL AS FROM THE ORDER OF THE CIT(A), IT EMERGES THAT THE ASSESSEE HAS NOT EARNED ANY DIVIDE ND INCOME. IN-FACT, THE SUBMISSIONS BEFORE THE ASSESSING OFFICER WAS ALSO T HAT THERE WAS NO EXEMPT INCOME EARNED DURING THE YEAR AND NO EXPENDITURE WA S INCURRED DURING THE YEAR TOWARDS EXEMPT INCOME. THUS, IN LIGHT OF THE DECISIONS OF THE HONBLE DELHI HIGH COURT IN CASE OF CHEMINVEST LTD. VS. CIT 61 TAXMAN.COM 118 3 ITA NO. 127/DEL/2018 (DELHI) AND CIT VS. HOLCIM LTD. 57 TAXMAN 28 AND AL SO IN LIGHT OF THE DECISION OF THE HONBLE APEX COURT IN CASE OF MAXOPP INVESTM ENT LTD. VS. CIT 402 ITR 640. HENCE, THE APPEAL OF THE ASSESSEE IS ALLOWED. 8. IN RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 18 TH DAY OF FEBRUARY, 2021 IN PRESENCE OF BOTH THE PARTIES. SD/- SD/- (B. R. R. KUMAR) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEM BER DATED: 18/02/2021 R. NAHEED * COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI 4 ITA NO. 127/DEL/2018