DCIT, New Delhi V. M/s. P.P. Jewellers Pvt. Ltd., Delhi

ITA 1708/DEL/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 2946 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 9 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-12-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2012-2013
• Appeal Filed On: 26-03-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• 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 F FF F : 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 SMT. BEENA A. PILLAI SMT. BEENA A. PILLAI SMT. BEENA A. PILLAI SMT. BEENA A. PILLAI, JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER ITA ITAITA ITA NO NONO NO S SS S . .. . 1707/DEL/2015 & 1708/DEL/2015 1707/DEL/2015 & 1708/DEL/2015 1707/DEL/2015 & 1708/DEL/2015 1707/DEL/2015 & 1708/DEL/2015 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR S SS S : : : : 2011 2011 2011 2011 - -- - 12 & 2012 12 & 2012 12 & 2012 12 & 2012 - -- - 13 1313 13 DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF INCOME INCOME INCOME INCOME TAX, TAX, TAX, TAX, CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -25, 25, 25, 25, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. VS. VS. VS. VS. M/S P.P. JEWELLERS PVT.LTD., M/S P.P. JEWELLERS PVT.LTD., M/S P.P. JEWELLERS PVT.LTD., M/S P.P. JEWELLERS PVT.LTD., H HH H- -- -05, P.P. TOWER, 05, P.P. TOWER, 05, P.P. TOWER, 05, P.P. TOWER, NETAJI SUBHASH PLACE, NETAJI SUBHASH PLACE, NETAJI SUBHASH PLACE, NETAJI SUBHASH PLACE, PITAMPURA, PITAMPURA, PITAMPURA, PITAMPURA, DELHI DELHI DELHI DELHI 110 034. 110 034. 110 034. 110 034. PAN : AAACP0874G. PAN : AAACP0874G. PAN : AAACP0874G. PAN : AAACP0874G. (APPELLANT) (RESPONDENT) APPELLANT BY : SMT. PARAMITA TRIPATHY, CIT - DR. RESPONDENT B Y : SHRI R.R. SINGLA, CA. DATE OF HEARING : 21.12.2017 21.12.2017 21.12.2017 21.12.2017 DATE OF PRONOUNCEMENT : 26.12.2017 26.12.2017 26.12.2017 26.12.2017 ORDER ORDER ORDER ORDER PER G.D. AGRAWAL, PER G.D. AGRAWAL, PER G.D. AGRAWAL, PER G.D. AGRAWAL, PRESIDENT PRESIDENT PRESIDENT PRESIDENT : :: :- -- - THESE APPEALS BY THE REVENUE FOR THE ASSESSMENT YE ARS 2011-12 & 2012-13 ARE DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-29, NEW DELHI DATED 12 TH JANUARY, 2015. 2. THE ONLY GROUND RAISED IN BOTH THESE APPEALS IS AGAINST THE DELETION OF DISALLOWANCE U/S 14A AMOUNTING TO `28,3 9,540/- AND 32,53,860/-. 3. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D PERUSED RELEVANT MATERIAL PLACED BEFORE US. WE FIND THAT L EARNED CIT(A) DELETED THE DISALLOWANCE U/S 14A ON THE GROUND THAT THERE WAS NO EXEMPT INCOME. WE FIND THIS ISSUE TO BE SQUARELY C OVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF HON'BLE JURISDICTIO NAL HIGH COURT IN THE ITA-1707 & 1708/DEL/2015 2 CASE OF CHEMINVEST 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 ASSE SSEE WAS NOT IN DOUBT, NO DISALLOWANCE COULD BE MADE UND ER SECTION 14A. 4. RESPECTFULLY FOLLOWING THE ABOVE DECISION OF HON 'BLE JURISDICTIONAL HIGH COURT, WE UPHOLD THE ORDER OF LEARNED CIT(A) A ND DISMISS BOTH THE APPEALS FILED BY THE REVENUE. 5. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE A RE DISMISSED. DECISION PRONOUNCED IN THE OPEN COURT ON 26.12.20 17. SD/- SD/- (BEENA A. PILLAI (BEENA A. PILLAI (BEENA A. PILLAI (BEENA A. PILLAI ) )) ) ( (( ( 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. COPY FORWARDED TO: - 1. APPELLANT : DEPUTY COMMISSIONER OF INCOME TA X, DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -25, NEW DELHI. 25, NEW DELHI. 25, NEW DELHI. 25, NEW DELHI. 2. RESPONDENT : M/S P.P. JEWELLERS PVT.LTD., M/S P.P. JEWELLERS PVT.LTD., M/S P.P. JEWELLERS PVT.LTD., M/S P.P. JEWELLERS PVT.LTD., H HH H- -- -05, P.P. TOWER, NETAJI SUBHASH PLACE, 05, P.P. TOWER, NETAJI SUBHASH PLACE, 05, P.P. TOWER, NETAJI SUBHASH PLACE, 05, P.P. TOWER, NETAJI SUBHASH PLACE, PITAMPURA, DELHI PITAMPURA, DELHI PITAMPURA, DELHI PITAMPURA, DELHI 110 034. 110 034. 110 034. 110 034. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR