M/s. Multiplex Capital Ltd., Delhi V. ITO, New Delhi

ITA 1618/DEL/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 6888 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 4 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-07-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC 1
• Next Hearing Date: 20-07-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 20-03-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MRS SHAVETA NAKRA DUTTA
• Assessee Lawyers: ARUNA MITTAL
• Keywords: Earning of tax free income
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : SMC-I : NEW DELHI BEFORE SHRI R.S. SYAL, ACCOUNTANT MEMBER ITA NO.1618/DEL/2015 ASSESSMENT YEAR : 2010-11 MULTIPLEX CAPITAL LTD., 100/28, KESHAV, SECTOR-9, ROHINI, DELHI. PAN: AAACM1761B VS. ITO, WARD-5(4), NEW DELHI. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI AJAY WADHWA, ADVOCATE & MS ARUNA MITTAL, CA DEPARTMENT BY : MRS. SHAVETA NAKRA DUTTA, SR. DR DATE OF HEARING : 20.07.2016 DATE OF PRONOUNCEMENT : 20.07.2016 ORDER THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER PASSED BY THE CIT(A) ON 20.01.2015 IN RELATION TO T HE ASSESSMENT YEAR 2010-11. ITA NO.1618/DEL/2015 2 2. THE FIRST ISSUE RAISED IN THIS APPEAL IS AGAINST SUSTENANCE OF DISALLOWANCE U/S 14A TO THE TUNE OF RS.3,25,236/-. 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE ASSESSEE EARNED DIVIDEND INCOME OF RS.3,25,236/- AND CLAIMED THE SA ME AS EXEMPT U/S 10(34) OF THE ACT. THE ASSESSEE DID NOT OFFER ANY DISALLOWANCE U/S 14A. THE AO COMPUTED DISALLOWANCE U/S 14A READ WITH RULE 8D AT RS.5,47,189/-. THE LD. CIT(A) RESTRICTED THE DISAL LOWANCE TO THE AMOUNT OF EXEMPT INCOME AT RS.3,25,236/-. THE ASSESSEE IS AGGRIEVED AGAINST THE SUSTENANCE OF DISALLOWANCE TO THIS EXTENT. 4. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED T HE RELEVANT MATERIAL ON RECORD. IT IS NOTICED THAT SIMILAR DIS ALLOWANCE WAS MADE BY THE AO AND SUSTAINED IN THE FIRST APPEAL FOR THE IM MEDIATELY PRECEDING ASSESSMENT YEAR, NAMELY, 2009-10. WHEN THE MATTER C AME UP FOR CONSIDERATION BEFORE THE TRIBUNAL, THE SAID DISALLO WANCE STOOD DELETED IN ITA NO.571/DEL/2013 VIDE THE ORDER DATED 25.3.2015, WHOSE COPY HAS BEEN PLACED ON RECORD. ADMITTEDLY, THE FACTS AND C IRCUMSTANCES OF THE YEAR UNDER CONSIDERATION ARE MUTATIS MUTANDIS SIMILAR TO THOSE OF THE ITA NO.1618/DEL/2015 3 ASSESSMENT YEAR 2009-10. RESPECTFULLY FOLLOWING TH E ORDER PASSED BY THE DIVISION BENCH IN THE ASSESSEES OWN CASE FOR T HE IMMEDIATELY PRECEDING ASSESSMENT YEAR, I ORDER FOR THE DELETION OF THE DISALLOWANCE U/S 14A SUSTAINED IN THE FIRST APPEAL. 5. THE OTHER GROUND ABOUT THE CONFIRMATION OF DISAL LOWANCE OF RS.66,000/- BY INVOKING THE PROVISIONS OF SECTION 4 0(A)(IA) WAS NOT PRESSED BY THE LD. AR. THE SAME IS, THEREFORE, DIS MISSED AS NOT PRESSED. 6. IN THE RESULT, THE APPEAL IS PARTLY ALLOWED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 20.07.201 6. SD/- [R.S. SYAL] ACCOUNTANT MEMBER DATED, 20 TH JULY, 2016. DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.