DCIT, New Delhi V. M/s. Oscar Investment Ltd., New Delhi

ITA 29/DEL/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 9313 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-07-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2013-2014
• Appeal Filed On: 03-01-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Earning of tax free income; Rule 8D
• Section: 14A

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI E BEN CH, NEW DELHI BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER, AND MS. SUCHITRA KAMBLE, JUDICIAL M EMBER ITA NO. 29/DEL/2017 [A.Y 2013-14] THE D.C.I.T. VS. M/S OSCAR INVESTMENT LTD CIRCLE 19 (1) 54, JANPATH, CONNAUGHT P LACE NEW DELHI NEW DELHI PAN NO: AAACO 1722 C [APPELLANT] [RESPONDENT] DATE OF HEARING : 04.07.2019 DATE OF PRONOUNCEMENT : 04.07 .2019 ASSESSEE BY : SHRI TARANDEEP SIN GH, ADV REVENUE BY : MS. RINKU SINGH, SR. DR ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER: THIS APPEAL BY THE REVENUE IS PREFERRED AGAINST THE ORDER OF THE LD. CIT(A) 7, NEW DELHI DATED 05.10.2016 PERTAINI NG TO A.Y 2013-14. 2. THE SOLITARY GRIEVANCE OF THE REVENUE IS THAT TH E CIT(A) ERRED IN DELETING THE DISALLOWANCE OF RS. 4,45,79,607/- MADE U/S 14A OF THE INCOME-TAX ACT, 1961 [HEREINAFTER REFERRED TO AS 'T HE ACT' FOR SHORT] READ WITH RULE 8D OF THE INCOME TAX RULES, 1962. 2 3. WE FIND THAT THE ASSESSING OFFICER HAS HIMSELF G IVEN A CATEGORICAL FINDING THAT DURING THE SUBJECT ASSESSMENT YEAR, NO EXEMPT INCOME WAS EARNED BY THE ASSESSEE. THIS ADMITTED FACT MAK ES THE IMPUGNED ISSUE SQUARELY IN FAVOUR OF THE ASSESSEE AND AGAINS T THE REVENUE BY THE DECISION OF THE HON'BLE JURISDICTIONAL HIGH COURT D ECISION OF THE SPECIAL BENCH OF THE TRIBUNAL IN THE CASE OF M/S CHEMINVEST LTD 121 ITD 318 WHICH WAS AFFIRMED BY THE HON'BLE HIGH COURT OF DEL HI. SAME VIEW IS TAKEN BY THE HON'BLE GUJARAT HIGH COURT IN THE CASE OF CORRTECH ENERGY (P) LTD 372 ITR 97. IN VIEW OF THE ABOVE, DISALLOWANCE OF RS. 4,45,79,607/- IS DIRECTED TO BE DELETED. ACCORDING LY, THE GROUND RAISED BY THE REVENUE IS DISMISSED. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IN ITA NO. 29/DEL/2017 IS DISMISSED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 04.07. 2019. SD/- SD/- [ SUCHITRA KAMBLE ] [N.K. BILLAIYA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 04 JULY, 2019 VL/ COPY FORWARDED TO: 3 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST. 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 08.07.2019 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER