ATMA RAM PROPERTIES PVT. LTD., NEW DELHI V. DCIT, CIRCLE- 3(2), NEW DELHI

ITA 2400/DEL/2018

• Counselvise Citation: [2021] 104 COUNSELVISE.COM (IT) 6722 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 8 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-12-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 05-04-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: HEMANT RATRA
• Keywords: Earning of tax free income
• Section: 14A

Judgement Text

IN THE INCOME TAX APPLLATE TRIBUNAL DELHI BENCH ‘A’, NEW DELHI BEFORE SH. AAKASH DEEP JAIN, VICE PRESIDENT AND SH. N. K. BILLAIYA, ACCOUNTANT MEMBER (THROUGH VIDEO CONFERENCING) ITA No.2400/Del/2018 Assessment Year: 2014-15 ATMA RAM Properties Pvt. Ltd. Office No.8, 1 st Floor, Atma Ram Mansion, Scindia House, K. G. Marg, Connaught Place circus, New Delhi-110001 PAN No.AAACA3232F Vs DCIT Circle – 3 (2) New Delhi (APPELLANT) (RESPONDENT) Appellant by Shri Hemant Ratra, Advocate Respondent by Shri Sanjay Kumar, Sr. DR Date of hearing: 09/12/2021 Date of Pronouncement: 09/12/2021 ORDER PER N.K. BILLAIYA AM: This appeal by the assessee is preferred against the order of the CIT(A)-1, New Delhi dated 01.02.2018 pertaining to A.Y. 2014-15. 2 2. The solitary grievance of the assessee is that the CIT(A) erred in confirming the action of the AO in making addition of Rs.2431909/- on account of disallowance u/s.14A r.w.r 8D of the Act though the same should have been restricted to total exempt income earned by the assessee. 3. Briefly stated the facts of the case are that during the year under consideration the assessee has earned dividend income of Rs.1791459/- on share investment. Invoking the provisions of section 14A r.w.r. 8D the AO made the disallowance of Rs.2431909/-. 4. Assessee carried the matter before the CIT(A) but without any success. 5. Before us the counsel stated that the disallowance u/s.14A should not exceed the exempt income. 6. We are of the considered view that this issue has now been well settled in favour of the assessee by the decision of the Hon’ble Delhi High Court in the case of Caraf Builders and Constructions Pvt. Ltd. 414 ITR 122. 7. Respectfully following the decision of the Hon’ble Jurisdictional High Court (supra). We direct the AO to restrict the disallowance to the extent of the exempt income of 3 Rs.1791459/-. The appeal filed by the assessee is accordingly dismissed. 6. Decision announced in the open court in the presence of both the representatives on 09.12.2021. Sd/- Sd/- (A.D. JAIN) (N. K. BILLAIYA) VICE PRESIDENT ACCOUNTANT MEMBER *NEHA* Date:- 09.12.2021 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI Date of dictation Date on which the typed draft is placed before the dictating Member Date on which the typed draft is placed before the Other member Date on which the approved draft comes to the Sr.PS/PS Date on which the fair order is placed before the Dictating Member for Pronouncement Date on which the fair order comes back to the Sr. PS/ PS Date on which the final order is uploaded on the website of ITAT 09.12.2021 Date on which the file goes to the Bench Clerk Date on which file goes to the Head Clerk. The date on which file goes to the Assistant Registrar for signature on the order Date of dispatch of the Order 4