M/s. Parishudh Finance Co. P. Ltd., New Delhi V. ITO, New Delhi

ITA 258/DEL/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 7697 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 4 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-05-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 17-05-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 13-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMRIT LAL SENIOR
• 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, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT AND AND AND AND SHRI CHANDRA MOHAN GARG SHRI CHANDRA MOHAN GARG SHRI CHANDRA MOHAN GARG SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER ITA NO ITA NO ITA NO ITA NO . .. . 258/DEL/2014 258/DEL/2014 258/DEL/2014 258/DEL/2014 ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : 2009 2009 2009 2009 - -- - 10 1010 10 M/S PARISHUDH FINANCE CO. M/S PARISHUDH FINANCE CO. M/S PARISHUDH FINANCE CO. M/S PARISHUDH FINANCE CO. (P) LTD., (P) LTD., (P) LTD., (P) LTD., B BB B- -- -12, SAGAR APA 12, SAGAR APA 12, SAGAR APA 12, SAGAR APARTMENTS, RTMENTS, RTMENTS, RTMENTS, 6, TILAK MARG, 6, TILAK MARG, 6, TILAK MARG, 6, TILAK MARG, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 001. 110 001. 110 001. 110 001. PAN : AADCP1963F. PAN : AADCP1963F. PAN : AADCP1963F. PAN : AADCP1963F. VS. VS. VS. VS. INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, WARD WARD WARD WARD- -- -14(1), 14(1), 14(1), 14(1), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : NONE. RESPONDENT BY : SHRI AMRIT LAL, SENIOR DR. DATE OF HEARING : 17.05.2016 17.05.2016 17.05.2016 17.05.2016 DATE OF PRONOUNCEMENT : 19.05.2016 19.05.2016 19.05.2016 19.05.2016 ORDER ORDER ORDER ORDER PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP : :: :- -- - THIS APPEAL BY THE ASSESSEE FOR THE ASSESSMENT YEAR 2009-10 IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-XVII, N EW DELHI DATED 25 TH NOVEMBER, 2013. 2. AT THE TIME OF HEARING BEFORE US, NOBODY APPEARED ON BEHALF OF THE ASSESSEE-RESPONDENT DESPITE SERVICE OF NOTICE. THIS AP PEAL OF THE ASSESSEE IS, THEREFORE, BEING DECIDED EX-PARTE QUA THE A SSESSEE- RESPONDENT ON MERITS AFTER HEARING THE ARGUMENTS OF LE ARNED DR. 3. GROUND NOS.1, 2 & 3 OF THE ASSESSEES APPEAL ARE AGAIN ST THE DISALLOWANCE OF `3,42,000/- UNDER SECTION 14A OF THE INCOME-TAX ACT, 1961 READ WITH RULE 8D. ITA-258/DEL/2014 2 4. WE HAVE HEARD THE ARGUMENTS OF LEARNED DR AND PE RUSED THE ASSESSMENT ORDER. FROM PAGE 1 OF THE ASSESSMENT ORDER, IT IS CLEAR THAT NO DIVIDEND INCOME WAS EARNED BY THE ASSESSEE DURIN G THE PREVIOUS YEAR. WE FIND THIS ISSUE TO BE COVERED IN FA VOUR OF THE ASSESSEE BY THE DECISION OF HON'BLE JURISDICTIONAL HIGH C OURT IN THE CASE OF CHEMINVEST LIMITED VS. CIT-VI IN ITA NO.749/20 14, ORDER DATED 2 ND SEPTEMBER, 2015 AND CIT-IV VS. HOLCIM INDIA P.LTD. IN ITA NO.486/2014 & 299/2014, ORDER DATED 5 TH SEPTEMBER, 2014, WHEREIN HON'BLE JURISDICTIONAL HIGH COURT HAS HELD THAT IF TH ERE IS NO EXEMPT INCOME, THEN NO DISALLOWANCE U/S 14A OF THE ACT CAN B E MADE. ADMITTEDLY, IN THE CASE OF THE ASSESSEE, THERE IS NO EXEM PT INCOME. THEREFORE, RESPECTFULLY FOLLOWING THE ABOVE DECISIONS OF HON'BLE JURISDICTIONAL HIGH COURT, WE DELETE THE DISALLOWANCE OF `3,42,000/- MADE BY THE ASSESSING OFFICER AND SUSTAINED BY LEARNED CIT(A) U/S 14A OF THE ACT. GROUND NOS.1, 2 & 3 ARE ACCORDINGLY ALL OWED. 5. GROUND NO.4 OF THE ASSESSEES APPEAL IS AGAINST CHARGIN G OF INTEREST U/S 234B, 234C & 234D OF THE ACT. THE SAME I S ADMITTED TO BE CONSEQUENTIAL. WE, THEREFORE, DIRECT THE ASSESSING OFFIC ER TO RECOMPUTE THE INTEREST, IF ANY, IN ACCORDANCE WITH L AW. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. DECISION PRONOUNCED IN THE OPEN COURT ON 19.05.2016. SD/- SD/- (CHANDRA (CHANDRA (CHANDRA (CHANDRA MOHAN GARG MOHAN GARG MOHAN GARG MOHAN GARG ) )) ) ( (( ( G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL ) )) ) JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VK. ITA-258/DEL/2014 3 COPY FORWARDED TO: - 1. APPELLANT : M/S PARISHUDH FINANCE CO. (P) LTD ., M/S PARISHUDH FINANCE CO. (P) LTD., M/S PARISHUDH FINANCE CO. (P) LTD., M/S PARISHUDH FINANCE CO. (P) LTD., B BB B- -- -12, SAGAR APARTMENTS, 12, SAGAR APARTMENTS, 12, SAGAR APARTMENTS, 12, SAGAR APARTMENTS, 6, TILAK MARG, NEW DELHI 6, TILAK MARG, NEW DELHI 6, TILAK MARG, NEW DELHI 6, TILAK MARG, NEW DELHI 110 001. 110 001. 110 001. 110 001. 2. RESPONDENT : INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, WARD WARD WARD WARD- -- -14(1), NEW DELHI. 14(1), NEW DELHI. 14(1), NEW DELHI. 14(1), NEW DELHI. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR