MAJESTIC INFRACON P.LTD, MUMBAI V. DCIT 12(3)(2), MUMBAI

ITA 2717/MUM/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 0382 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-09-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: I
• Assessment Year: 2012-2013
• Appeal Filed On: 13-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHAITNYA S ANJARIA
• Assessee Lawyers: K G BOHRA
• Keywords: Earning of tax free income
• Section: 143(3); 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL 'D' BENCH, MUMBAI BEFORE SHRI R.C. SHARMA, ACCOUNTANT MEMBER AND SHRI RAM LAL NEGI, JUDICIAL MEMBER ITA NO. 2717/MUM/2017 (ASSESSMENT YEAR: 2012-13) M/S. MAJESTIC INFRACON P. LTD. DB HOUSE, GEN, A.K. VAIDYA MARG, GOREGAON (E) MUMBAI 400063 VS. D C I T - 12(3)(2) AAYAKAR BHAVAN, M.K. ROAD MUMBAI 400020 PAN AACCT4160F APPELLANT RESPONDENT APPELLANT BY: SHRI K.G. BOHRA RESPONDENT BY: SHRI CHAITNYA S. ANJARIA DATE OF HEARING: 17.09.2018 DATE OF PRONOUNCEMENT: 19.09.2018 O R D E R PER R.C. SHARMA, AM THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A)-20, MUMBAI DATED 02.12.2016 FOR A.Y. 2012-13 IN THE MATTER OF ORDER PASSED UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER THE ACT). 2. IN THIS APPEAL ASSESSEE IS AGGRIEVED FOR THE DISALL OWANCE MADE UNDER SECTION 14A OF THE ACT R.W. RULE 8D OF I.T. RULES. 3. WE HAVE HEARD THE RIVAL CONTENTIONS AND FOUND THAT THE DISALLOWANCE HAS BEEN MADE UNDER SECTION 14A OF THE ACT WITHOUT CONSIDERING THE FACT THAT THE ASSESSEE IS HAVING NO EXEMPT INCOME DURING THE YEAR UNDER CONSIDERATION. IN VIEW OF THE DECISION OF THE HON'B LE DELHI HIGH COURT IN THE CASE OF M/S. CHEMINVEST LTD. IN ITA NO. 479 OF 2014 DATED 02.09.2015, NO DISALLOWANCE UNDER SECTION 14A IS TO BE MADE WHE N THERE IS NO EXEMPT INCOME. ACCORDINGLY WE RESTORE THE MATTER BACK TO T HE FILE OF THE AO TO VERIFY ASSESSEES CLAIM THAT NO EXEMPT INCOME HAS B EEN EARNED DURING THE ITA NO. 2717/MUM/2017 M/S. MAJESTIC INFRACON P. LTD. 2 YEAR AND TO DECIDE THE SAME IN TERMS OF THE DECISIO N OF THE HON'BLE DELHI HIGH COURT IN THE CASE OF CHEMINVEST LTD. (SUPRA). 4. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 19 TH SEPTEMBER, 2018. SD/ - SD/ - (RAM LAL NEGI) (R.C. SHARMA) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DATED: 19 TH SEPTEMBER, 2018 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) -20, MUMBAI 4. THE CIT - 12, MUMBAI 5. THE DR, D BENCH, ITAT, MUMBAI BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI N.P.