ACIT, New Delhi V. M/s Samtel Machines & Projects Ltd., New Delhi

ITA 30/DEL/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 3992 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-01-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2011-2012
• Appeal Filed On: 04-01-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S R SENAPTHY
• Assessee Lawyers: D C GARG
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : C : NEW DELHI BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SMT. BEENA A. PILLAI, JUDICIAL MEMBER ITA NO.30/DEL/2016 ASSESSMENT YEAR : 2011-12 ACIT, CIRCLE-22(2), CR BUILDING, NEW DELHI. VS. SAMTEL MACHINES & PROJECTS LTD., 501, COPIA CORPORATE SUITES, DISTT. CENTRE, JASOLA, NEW DELHI. PAN: AAACT0326Q (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI D.C. GARG, CA DEPARTMENT BY : SHRI S.R. SENAPTHY, SR. DR DATE OF HEARING : 24.01.2017 DATE OF PRONOUNCEMENT : 25.01.2017 ORDER PER R.S. SYAL, VP: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAIN ST THE ORDER PASSED BY THE CIT(A) ON 15.10.2015 IN RELATION TO THE ASSESSMENT YEAR 2011-12. ITA NO.30/DEL/2016 2 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST THE DELETION OF DISALLOWANCE MADE BY THE ASSESSING OFFICER U/S 14A OF THE ACT. 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE ASSESSING OFFICER MADE DISALLOWANCE U/S 14A AS PER RULE 8D AMOUNTING TO RS .94,12,520/-. THE LD. CIT(A) DELETED THE ADDITION BY OBSERVING THAT NO EXEMPT IN COME WAS EARNED BY THE ASSESSEE DURING THE YEAR. THE REVENUE IS AGGRIEVED AGAINST THE DELETION OF ADDITION. 4. HAVING HEARD BOTH THE SIDES AND PERUSED THE RELE VANT MATERIAL ON RECORD, WE FIND THAT THIS ISSUE IS NO MORE RES INTEGRA IN VIEW OF THE JUDGMENT OF THE HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE CHEMINVEST LTD. VS. CIT (2015) 378 ITR 33 (DEL) , WHEREIN IT HAS BEEN HELD THAT IF THERE IS NO EXEM PT INCOME, THERE CAN BE NO QUESTION OF MAKING ANY DISALLOWANCE U/S 14A. SIMIL AR VIEW HAS BEEN TAKEN BY THE HON'BLE JURISDICTIONAL HIGH COURT IN CIT VS. HOLCIM INDIA P. LTD. (2014) 90CCH 081-DEL-HC . IN VIEW OF THESE BINDING PRECEDENTS PROVIDING FO R NOT MAKING ANY DISALLOWANCE U/S 14A IN THE ABSENCE OF ANY EXEMPT I NCOME, WHICH ARE SQUARELY APPLICABLE TO THE FACTS OF THE INSTANT CASE, WE UPH OLD THE VIEW TAKEN BY THE LD. CIT(A) ON THIS ISSUE. ITA NO.30/DEL/2016 3 5. IN THE RESULT, THE APPEAL IS DISMISSED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 25 .01.20 18. SD/- SD/- [BEENA A. PILLAI] [R.S. SYAL] JUDICIAL MEMBER VICE PRESIDENT DATED, 25 TH JANUARY, 2018. DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.