ITO, New Delhi V. M/s Pasupati Nath Resorts (P) Ltd., New Delhi

ITA 155/DEL/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 0036 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 9 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-11-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2011-2012
• Appeal Filed On: 12-01-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K YADAV SENIOR
• Keywords: 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 E EE E : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI BEFORE SHRI BEFORE SHRI BEFORE SHRI G.D. AGRAWAL, G.D. AGRAWAL, G.D. AGRAWAL, G.D. AGRAWAL, PRESIDENT PRESIDENT PRESIDENT PRESIDENT AND AND AND AND SHRI KULDIP SINGH SHRI KULDIP SINGH SHRI KULDIP SINGH SHRI KULDIP SINGH, JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER ITA ITAITA ITA NO NONO NO .155/DEL/2016 .155/DEL/2016 .155/DEL/2016 .155/DEL/2016 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : 2011 : 2011 : 2011 : 2011 - -- - 12 1212 12 INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, WARD WARD WARD WARD- -- -19(3), ROOM NO.217, 19(3), ROOM NO.217, 19(3), ROOM NO.217, 19(3), ROOM NO.217, 2 22 2 ND NDND ND FLOOR, C.R. BU FLOOR, C.R. BU FLOOR, C.R. BU FLOOR, C.R. BUILDING, ILDING, ILDING, ILDING, I.P. ESTATE, I.P. ESTATE, I.P. ESTATE, I.P. ESTATE, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. VS. VS. VS. VS. M/S PASUPATI NATH RESORTS (P) LTD., M/S PASUPATI NATH RESORTS (P) LTD., M/S PASUPATI NATH RESORTS (P) LTD., M/S PASUPATI NATH RESORTS (P) LTD., KHASRA NO.646 KHASRA NO.646 KHASRA NO.646 KHASRA NO.646- -- -653, 653, 653, 653, CHHATARPUR MANDIR ROAD, CHHATARPUR MANDIR ROAD, CHHATARPUR MANDIR ROAD, CHHATARPUR MANDIR ROAD, CHHATARPUR, CHHATARPUR, CHHATARPUR, CHHATARPUR, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 030. 110 030. 110 030. 110 030. PAN : AAECP0732D. PAN : AAECP0732D. PAN : AAECP0732D. PAN : AAECP0732D. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI A.K. YADAV, SENIOR DR. RESP ONDENT BY : NONE. DATE OF HEARING : 3 33 30 00 0.10.2017 .10.2017 .10.2017 .10.2017 DATE OF PRONOUNCEMENT : 02.11.2017 02.11.2017 02.11.2017 02.11.2017 ORDER ORDER ORDER ORDER PER G.D. AGRAWAL, PER G.D. AGRAWAL, PER G.D. AGRAWAL, PER G.D. AGRAWAL, PRESIDENT PRESIDENT PRESIDENT PRESIDENT : :: :- -- - THIS APPEAL BY THE REVENUE FOR THE ASSESSMENT YEAR 201 1-12 IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-7, NEW DELHI DATED 12 TH OCTOBER, 2015. 2. AT THE TIME OF HEARING BEFORE US, NOBODY APPEARED ON BEHALF OF THE ASSESSEE-RESPONDENT. AN APPLICATION DATED 30 TH OCTOBER, 2017 HAS BEEN FILED ON BEHALF OF THE ASSESSEE REQUESTING FOR ADJO URNMENT OF THE HEARING ON THE GROUND THAT THE COUNSEL IS BUSY IN TAX AUDIT WORK. HOWEVER, SINCE THE ISSUE INVOLVED IN THIS APPEAL IS COVE RED, THE ADJOURNMENT APPLICATION OF THE ASSESSEE WAS REJECTED AN D WE ITA-155/DEL/2016 2 PROCEEDED TO HEAR THE LEARNED DR AND DECIDE THE APP EAL OF THE REVENUE EX-PARTE QUA THE ASSESSEE-RESPONDENT. 3. IN THIS APPEAL, THE REVENUE HAS RAISED THE ONLY GR OUND AGAINST THE DELETION OF DISALLOWANCE MADE BY THE ASSESSING OFFIC ER U/S 14A OF THE INCOME-TAX ACT, 1961. 4. WE HAVE HEARD THE ARGUMENTS OF LEARNED DR AND PE RUSED RELEVANT MATERIAL PLACED BEFORE US. IT IS NOTICED TH AT THERE IS NO EXEMPT INCOME IN THE YEAR UNDER CONSIDERATION AND, T HEREFORE, THE ISSUE UNDER CONSIDERATION IS SQUARELY COVERED BY THE DEC ISION OF HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF CHEM INVEST LTD. VS. CIT [2015] 378 ITR 33 (DELHI), WHEREIN THEIR LORDSHIPS HELD AS UNDER :- HELD, THAT NO EXEMPTED INCOME WAS EARNED BY THE ASSESSEE IN THE RELEVANT ASSESSMENT YEAR AND SINCE THE GENUINENESS OF THE EXPENDITURE INCURRED BY THE ASSESSEE WAS NOT IN DOUBT, NO DISALLOWANCE COULD BE MADE UNDER SECTION 14A. 5. RESPECTFULLY FOLLOWING THE ABOVE DECISION OF HON'B LE JURISDICTIONAL HIGH COURT, WE UPHOLD THE ORDER OF LEARNED CIT(A) A ND DISMISS THE APPEAL FILED BY THE REVENUE. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED . DECISION PRONOUNCED IN THE OPEN COURT ON 02.11.2017. SD/- SD/- (KULDIP SINGH (KULDIP SINGH (KULDIP SINGH (KULDIP SINGH ) )) ) ( (( ( G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL ) )) ) JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER PRESIDENT PRESIDENT PRESIDENT PRESIDENT VK. ITA-155/DEL/2016 3 COPY FORWARDED TO: - 1. APPELLANT : I II INCOME TAX OFFICER, WARD NCOME TAX OFFICER, WARD NCOME TAX OFFICER, WARD NCOME TAX OFFICER, WARD- -- -19(3), ROOM NO.217, 19(3), ROOM NO.217, 19(3), ROOM NO.217, 19(3), ROOM NO.217, 2 22 2 ND NDND ND FLOOR, C.R. BUILDING, I.P. ESTATE, NEW DELHI. FLOOR, C.R. BUILDING, I.P. ESTATE, NEW DELHI. FLOOR, C.R. BUILDING, I.P. ESTATE, NEW DELHI. FLOOR, C.R. BUILDING, I.P. ESTATE, NEW DELHI. 2. RESPONDENT : M/S PASUPATI NATH RESORTS (P) LTD., M/S PASUPATI NATH RESORTS (P) LTD., M/S PASUPATI NATH RESORTS (P) LTD., M/S PASUPATI NATH RESORTS (P) LTD., KHASRA NO.646 KHASRA NO.646 KHASRA NO.646 KHASRA NO.646- -- -653, CHHATARPUR MANDIR ROAD, 653, CHHATARPUR MANDIR ROAD, 653, CHHATARPUR MANDIR ROAD, 653, CHHATARPUR MANDIR ROAD, CHHATARPUR, NEW DELHI CHHATARPUR, NEW DELHI CHHATARPUR, NEW DELHI CHHATARPUR, NEW DELHI 110 030. 110 030. 110 030. 110 030. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR