M/s. Hughes Network Systems India Ltd., New Delhi V. DCIT, New Delhi

ITA 2811/DEL/2014

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 7134 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 7 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-01-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 22-12-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 06-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMRIT LAL SENIOR
• Assessee Lawyers: ANSHUL SACHAR S
• 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 C CC C : 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 KULDIP SINGH SHRI KULDIP SINGH SHRI KULDIP SINGH SHRI KULDIP SINGH, JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER ITA NO ITA NO ITA NO ITA NO . .. . 2811/DEL/2014 2811/DEL/2014 2811/DEL/2014 2811/DEL/2014 ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : 2008 2008 2008 2008 - -- - 09 0909 09 M/S HUGHES NETWORK M/S HUGHES NETWORK M/S HUGHES NETWORK M/S HUGHES NETWORK SYSTEMS INDIA LIMITED, SYSTEMS INDIA LIMITED, SYSTEMS INDIA LIMITED, SYSTEMS INDIA LIMITED, 1, SHIVAJI MARG 1, SHIVAJI MARG 1, SHIVAJI MARG 1, SHIVAJI MARG, ,, , WESTEND GREENS, NH WESTEND GREENS, NH WESTEND GREENS, NH WESTEND GREENS, NH- -- -8, 8,8, 8, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 037. 110 037. 110 037. 110 037. PAN : AAACH3025R. PAN : AAACH3025R. PAN : AAACH3025R. PAN : AAACH3025R. VS. VS. VS. VS. DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -12(1), 12(1), 12(1), 12(1), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI NEERAJ JAIN AND SHRI ANSHUL SACHAR, ADVOCATES. RESPONDENT BY : SH RI AMRIT LAL, SENIOR DR. DATE OF HEARING : 22.12.2016 22.12.2016 22.12.2016 22.12.2016 DATE OF PRONOUNCEMENT : 02.01.2017 02.01.2017 02.01.2017 02.01.2017 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 YEA R 2008-09 IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-XX, NE W DELHI DATED 18 TH FEBRUARY, 2014. 2. THE ONLY GROUND RAISED BY THE ASSESSEE IN THIS A PPEAL IS AGAINST THE DISALLOWANCE UNDER SECTION 14A OF THE INCOME-TA X ACT, 1961 AMOUNTING TO `10,59,986/-. 3. AT THE TIME OF HEARING BEFORE US, THE LEARNED CO UNSEL FOR THE ASSESSEE POINTED OUT THAT THERE IS NO EXEMPT INCOME DURING THE YEAR UNDER CONSIDERATION. THEREFORE, IN VIEW OF THE DEC ISION OF HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF CHEMINVEST LIMITED VS. CIT [2015] 378 ITR 33 (DELHI), NO DISALLOWANCE U/S 14A CAN BE MADE. ITA-2811/DEL/2014 2 4. LEARNED DR, ON THE OTHER HAND, RELIED UPON THE O RDERS OF AUTHORITIES BELOW. 5. WE HAVE CAREFULLY CONSIDERED THE ARGUMENTS OF BO TH THE SIDES AND PERUSED THE MATERIAL PLACED BEFORE US. WE FIND THIS ISSUE TO BE COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION O F HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF CHEMINVEST LIMITED (SUPRA) 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 HI GH COURT HAS HELD THAT IF THERE IS NO EXEMPT INCOME, THEN NO DISALLOWANCE U/S 14A OF THE ACT CAN BE MADE. ADMITTEDLY, IN THE CAS E OF THE ASSESSEE, THERE IS NO EXEMPT INCOME. THEREFORE, RESPECTFULLY FOLLOWING THE ABOVE DECISIONS OF HON'BLE JURISDICTIONAL HIGH COURT, WE DELETE THE DISALLOWANCE MADE U/S 14A OF THE ACT. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. DECISION PRONOUNCED IN THE OPEN COURT ON 02.01.2017 . SD/- SD/- (KULDIP SINGH (KULDIP SINGH (KULDIP SINGH (KULDIP SINGH ) )) ) ( (( ( G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL ) )) ) JUDICIA JUDICIA JUDICIA JUDICIA L MEMBER L MEMBER L MEMBER L MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VK. COPY FORWARDED TO: - 1. APPELLANT : M/S HUGHES NETWORK SYSTEMS INDIA LIMITED, M/S HUGHES NETWORK SYSTEMS INDIA LIMITED, M/S HUGHES NETWORK SYSTEMS INDIA LIMITED, M/S HUGHES NETWORK SYSTEMS INDIA LIMITED, 1, SHIVAJI MARG, WESTEND GREENS, NH 1, SHIVAJI MARG, WESTEND GREENS, NH 1, SHIVAJI MARG, WESTEND GREENS, NH 1, SHIVAJI MARG, WESTEND GREENS, NH- -- -8, 8,8, 8, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 037. 110 037. 110 037. 110 037. 2. RESPONDENT : DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -12 1212 12(1), NEW DELHI. (1), NEW DELHI. (1), NEW DELHI. (1), NEW DELHI. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR