ACIT, Central circle-18, New Delhi V. Hindustan Power Project P.Ltd, New Delhi

ITA 2188/DEL/2018

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 7552 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 4 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-08-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2011-2012
• Appeal Filed On: 28-03-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANIMA BARNWAL
• Keywords: Earning of tax free income; Bad and doubtful debts; Tax effect
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C NEW DELHI BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER & SHRI VIJAY PAL RAO, JUDICIAL MEMBER I.T.A. NO.2188/DEL/2018 ASSESSMENT YEAR 2011-12 ACIT, CENTRAL CIRCLE-18, NEW DELHI. V. HINDUSTAN POWER PROJECTS P. LTD., 616A, 16A, 6 TH FLOOR, DEVIKA TOWER, NEHRU PLACE, NEW DELHI. TAN/PAN: AADCP2572N (APPELLANT) (RESPONDENT) APPELLANT BY: MS. ANIMA BARNWAL, SR.D.R. RESPONDENT BY: NONE DATE OF HEARING: 26 08 2021 DATE OF PRONOUNCEMENT: 26 08 2021 O R D E R PER VIJAY PAL RAO, J.M. THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 02.11.2017 BY COMMISSIONER OF INCOME TAX (APP EALS)- XXXVIII, NEW DELHI FOR THE ASSESSMENT YEAR 2011-12. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL AS UNDER: 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES O F THE CASE, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION O F RS.92,18,848/- BY HOLDING THAT SECTION 14A OF THE ACT IS NOT APPLI CABLE WHERE NO EXEMPT INCOME IS EARNED DURING THE YEAR. 2. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION O F RS.92,18,848/- WITHOUT TAKING INTO ACCOUNT THE CBDT CIRCULAR NO. 5 /2014 DATED 11.02.2014. I.T.A. NO.2188/DEL/2018 2 3. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION O F RS.92,18,848/- WITHOUT APPRECIATING THE FACT THAT SECTION 14A OF T HE ACT DOES NOT REQUIRE THAT IT WOULD OPERATE ONLY IF THE INVESTMEN T YIELDS POSITIVE RESULT BY WAY OF POSITIVE INCOME. 4. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN DELETING THE DISALLOWAN CE OF RS. 31,50,161/- ON ACCOUNT OF BAD DEBTS MADE BY THE A.O . WITHOUT APPRECIATING THE FACT DURING THE COURSE OF ASSESSME NT PROCEEDINGS, THE ASSESSEE FAILED TO FURNISH ANY PROOF TO JUSTIFY ITS CLAIM OF BAD DEBTS. 5. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN ADMITTING ADDITIONAL EV IDENCE U/R 46A WITHOUT APPRECIATING THE FACT THAT THE ASSESSEE WAS GRANTED REASONABLE OPPORTUNITY BY THE A.O. DURING COURSE OF ASSESSMENT TO FURNISH THE EVIDENCE WHICH ASSESSEE DID NOT AVAIL W ITHOUT ANY SUFFICIENT REASON. 6. THE APPELLANT CRAVES LEAVE TO ADD, ALTER OR AME ND ANY/ALL OF THE GROUNDS OF APPEAL BEFORE OR DURING THE COURSE O F THE HEARING OF THE APPEAL. 2. NONE HAS APPEARED ON BEHALF OF THE ASSESSEE DESP ITE THE NOTICES ISSUED THROUGH RPAD. AT THE OUTSET, IT IS N OTED THAT THE TAX EFFECT IN THE REVENUES APPEAL IS BELOW THE MON ETARY LIMIT PRESCRIBED IN THE CBDT CIRCULAR NO.17/2019 DATED 08 .08.2019. 3. THE LD. DR HAS FAIRLY ADMITTED THAT THE TAX EFFE CT IN THE REVENUES APPEAL IS LESS THAN THE MONETARY LIMIT PR OVIDED IN THE CBDT CIRCULAR NO. 17/2019 DATED 08.08.2019 AND IT D OES NOT FALL IN ANY OF THE EXCEPTION PROVIDED IN THE SAID C IRCULAR. I.T.A. NO.2188/DEL/2018 3 ACCORDINGLY, IN VIEW OF LOW TAX EFFECT IN REVENUES APPEAL, THE SAME IS NOT MAINTAINABLE AND LIABLE TO BE DISMISSED . 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED DUE TO LOW TAX EFFECT. ORDER PRONOUNCED IN THE OPEN COURT ON 26 TH AUGUST, 2021. SD/- SD/- [R.K. PANDA] [VIJAY PAL RAO] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 26 TH AUGUST, 2021 PRABHAT: