M/s Media Industries Ltd., New Delhi V. ITO, New Delhi

ITA 2393/DEL/2013

• Counselvise Citation: 239320114 RSA 2013
• Duration Of Justice: 6 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-11-2013
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2009-2010
• Appeal Filed On: 23-04-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: MRS RENUKA JAIN GU PTA
• Keywords: Earning of tax free income
• Section: 14A; 115JB

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: E NEW DELHI BEFORE SHRI R. P. TOLANI, JUDICIAL MEMBER AND SHRI B. C. MEENA, ACCOUNTANT MEMBER I.T.A .NO.-2393/DEL/2013 (ASSESSMENT YEAR-2009-10) MEDIA INDUSTRIES LTD. VS. ITO C/O ARUN KISHORE & CO. WARD 6(4), CHARTERED ACCOUNTANTS, C.R. BUILDING D-25, F.F. LAJPAT NAGAR-II I.P. ESTATE, NEW DELHI-110024 NEW DELHI. PAN: AAACM6564A (APPELLANT) (RESPONDENT) ASSESSEE BY:-SHRI ARUN KISHORE, CA. REVENUE BY:-MRS. RENUKA JAIN GUPTA, SR. DR. ORDER PER R. P. TOLANI, JM. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 13.03.2013 PASSED BY THE LD. CIT (APPEALS)-IX, NEW DELHI FOR A.Y. 2009- 10. 2. CHALLENGING CONFIRMATION OF ADDITION OF RS.2,75, 956/- U/S 14A R.W.R. 8D. THE LD. COUNSEL FOR THE ASSESSEE CONTENDS THAT THE LOWER AUTHORITIES FAILED TO APPRECIATE THE VITAL ASPECT THAT THE INVE STMENT MADE BY THE ASSESSEE 2 AS REFLECTED IN THE BALANCE SHEET DOES NOT RESULT I NTO EXEMPT INCOME TO WHICH RULE 8D IS APPLICABLE. THE DETAILS THEREOF ARE AS U NDER: A) INCOME FROM SHORT TERM CAPITAL GAINS : FORMS P ART OF TOTAL INCOME B) INCOME FROM LONG TERM CAPITAL GAINS : FORMS PA RT OF TOTAL INCOME C) DIVIDENDS ARE FIRST TAXED U/S 115O OF : TAX IS CHARGED ON DIVIDENDS THE ACT AND THEN ONLY ARE EXEMPTS DISTRIBUTED (I N RESPECT OF U/S 10(34) OF THE ACT INVESTMENTS HELD) IT IS ONLY THEN THAT SUCH INCOME DOES DOES NOT FORM PART OF TOTAL INCOME IN THE HANDS OF THE RECEIPIENT. D) INCOME ARISING ON TRANSFER OF LONG : FORMS OF P ART OF TOTAL INCOME TERMS EQUITY SHARES IN A COMPANY U/S 115JB OF T HE ACT AS AS DEFINED U/S 10(38) OF THE ACT. MINIMUM ALTER NATE TAX APPLI- CABLE ALL SUCH INCOME INCLUDED IN THE P & L ACCOUNT. E) INTEREST INCOME ON GOVERNMENT : FORMS PART OF T OTAL INCOME. SECURITIES. F) INCOME FROM LONG TERM CAPITAL GAINS : FORM PART OF TOTAL INCOME ON SALES WITHOUT PAYMENT OF STT 3. THOUGH LOWER AUTHORITIES HAVE REFERRED TO THE DE TAILS BUT HAVE FAILED TO GIVE APPROPRIATE RELIEF TO THE ASSESSEE. LD. DR IS HEARD, IN SUPPORT OF THE ORDER OF LOWER AUTHORITIES. 4. WE HAVE HEARD THE RIVAL CONTENTION AND PERUSED T HE MATERIAL AVAILABLE ON RECORD. IN OUR CONSIDERED OPINION WHEN THE LOWER AUTHORITIES HAVE 3 REFERRED TO THE FACTS MENTIONED IN THE ABOVE DETAIL S AND MOST OF THE INCOME ACCORDING TO ASSESSEE FORMS PART OF THE TOTAL INCOM E WHICH IMPLIEDLY MEANS THAT THIS INCOME WAS NOT EXEMPT FROM TAX SO AS TO C ONSIDER U/S 14A R.W.R. 8D. IN OUR VIEW THEREOF WE SET ASIDE THE MATTER BAC K TO THE AO TO GIVE CLEAR FINDINGS ABOUT EACH INVESTMENT AND CONSIDER WHETHER IT FORMS PART OF THE BORROWED FUNDS AND ANY OTHER EXPENDITURE IS ATTRIBU TABLE TO THE EXEMPT INCOME OR NOT. THE AO SHALL DECIDE THE ISSUE, IN VI EW OF AS PER LAW AND KEEPING IN VIEW THE HONBLE DELHI HIGH COURTS JUDG MENT IN THE CASE OF MAXOPP INVESTMENTS 15 TAXMAN.COM 390. 5. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 22/11/2013. SD/- SD/- ( B. C. MEENA ) (R. P. TOLANI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 22/11/2013 *AK VERMA* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTR