M/s. Rohit Springforms Pvt.Ltd, Pune V. Assistant Commissioner of Income-tax, Circle -10, , Pune

ITA 1746/PUN/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 4950 (ITAT-PUNE)
• Duration Of Justice: 9 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-08-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Pune
• Next Hearing Date: 14-08-2019
• Assessment Year: 2015-2016
• Appeal Filed On: 13-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VISHWAS MUNDHE
• Keywords: Earning of tax free income
• Section: 14A; 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE BEFORE SHRI R.S. SYAL , VICE PRESIDENT . / ITA NO. 1746 /PUN/20 18 / ASSESSMENT YEAR : 2015 - 16 M/S. ROHIT SPRINGFORMS PVT. LTD. TP NO.173, MIDC, NASIC ROAD, BHOSARI, PUNE - 411 026. PAN : AACCR8874N ....... / APPELLANT / V/S. THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - 10, PUNE. / RESPONDENT A SSESSEE BY : SHRI RISHI V. LODHA REVENUE BY : SHRI VISHWAS MUNDHE / DATE OF HEARING : 1 4 .0 8 .2019 / DATE OF PRONOUNCEMENT : 1 4 .08 .2019 / ORDER PER R.S. SYAL, VP : THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDER PASSED BY THE CIT(A) - 6 , PUNE ON 12.09.2018 IN RE LATION TO THE ASSESSMENT YEAR 2015 - 1 6 . 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST THE CONFIRMATION OF DISALLOWANCE U/S.14A R.W.R. 8D OF THE INCOME TAX RULES, 1962 TO THE TUNE OF RS.16,79,171/ - . 2 ITA NO. 1746 /PUN/20 18 A.Y. 2015 - 16 3. BRIEFLY STATED , THE FACTS ARE THAT THE AO FOUND THAT THE ASSESSEE HA D NOT OFFERED ANY DISALLOWANCE U/S.14 A OF THE INCOME TAX ACT, 1961 ( HEREINAFTER CALLED AS THE ACT) . THE ASSESSEE EXPLAINED THAT NO EXEMPT INCOME WA S EARNED BY HIM. N OT SATISFIED , THE AO COMPUTED DISALLOWANCE U/S.14A R.W.R.8D OF THE INCOME TAX RULES, 1961 AT RS.16,79,171/ - . THE LD. CIT(A) UPHELD THE ADDITION MADE BY THE AO. 4 . HAVING HEARD THE RIVAL SUBMISSIONS AND PERUSED THE RELEVANT MATERIAL ON RECORD, IT IS OBSERVED FROM THE ASSESSMENT ORDER ITSELF THAT THE ASSESSEE DID NOT EARN ANY EXEMPT INCOME DURING THE YEAR , WHICH FACT HAS NOT BEEN DENIED BY THE AO . T HE HON'BLE DELHI HIGH COURT IN CHEMINVEST LTD. VS. CIT (2015) 378 ITR 33 (DEL) HAS HELD THAT IF THERE IS NO EXEMPT INCOME, THERE CAN BE NO QUESTION OF MAKING ANY DISALLOWANCE U/S 14A OF THE ACT. SIMILAR VIEW HAS BEEN TAKEN BY THE HON'BLE DELHI HIGH COURT IN CIT VS. HOLCIM INDIA P. LTD. (2014) 90CCH 081 - DEL - HC . IN VIEW OF THE FACT THAT THE ASSESSEE DID NOT EARN ANY EXEMPT INCOME DURING THE YEAR, THERE CAN BE NO QUESTION OF MAKING OR SUSTAINING ANY DISALLOWANCE U/S 14A OF THE ACT. SIMILAR VIEW HAS BEEN TAKEN BY THE DELHI BENCH OF THE TRIBUNAL IN SEVERAL CASES INCLUDING INDO HONGKONG INDUSTRI ES PVT. LTD. VS. DCIT IN ITA NOS. 2611 & 2612/DEL/2015 VIDE ITS ORDER DATED SEPTEMBER, 2018. NO CONTRARY DECISION HAS BEEN BROUGHT TO MY 3 ITA NO. 1746 /PUN/20 18 A.Y. 2015 - 16 NOTICE BY THE LD. DR. I , THEREFORE, OVERTURN THE IMPUGNED ORDER TO THIS EXTENT AND DIRECT TO DELETE THE ADDITION . 5 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRO NOUNCED ON 14 TH DAY OF AUGUST , 201 9 . SD/ - R . S . SYAL / VICE - PRESIDENT / PUNE; / DATED : 14 TH AUGUST , 201 9 . SB / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT(APPEALS) - 6, PUNE. 4. THE PR. CIT - 5, PUNE. 5. , , - , / DR, ITAT, SMC BENCH, PUNE. 6. / GUARD FILE. // TRUE C O PY // / BY ORDER, / PRIVATE SECRETARY , / ITAT, PUNE . 4 ITA NO. 1746 /PUN/20 18 A.Y. 2015 - 16 * DATE 1 DRAFT DICTATED ON 14 .08 .201 9 SR. PS/PS 2 DRAFT PLACED BEFORE AUTHOR 14 .08 .2019 SR. PS/PS 3 DRAFT PROPOSED AND PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM/JM 5 APPROVED DRAFT COMES TO THE SR. PS/PS SR. PS/PS 6 KEPT FOR PRONOUNCEMENT ON SR. PS/PS 7 DATE OF UPLOADING OF ORDER SR. PS/PS 8 FILE SENT TO BENCH CLERK SR. PS/PS 9 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 10 DATE ON WHICH FILE GOES TO THE A.R 11 DATE OF DISPATCH OF ORDER