Pioneer Fil-Med Pvt. Ltd., NEHRU PLACE V. DEPUTY COMMISSIONER , DELHI

ITA 3152/DEL/2023

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 2770 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-04-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 05-02-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 05-11-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Earning of tax free income; Rule 8D
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘F’, NEW DELHI BEFORE SH. SAKTIJIT DEY, VICE PRESIDENT AND SH. M. BALAGANESH, ACCOUNTANT MEMBER ITA No. 3152/Del/2023 (Assessment Year : 2017-18) Pioneer Fil-Med Pvt. Ltd. 5 th Floor, 502, Padma Palace, 86, Nehru Place, New Delhi-110 019 PAN No. AAACP 9963 C Vs. DCIT-19(2) New Delhi (APPELLANT) (RESPONDENT) Assessee by Shri Lalit Mohan, Adv. Shri Hitesh Kumar Gupta, C.A. Revenue by Shri Vivek Vardhan, Sr. D.R. Date of hearing: 06.02.2024 Date of Pronouncement: 29.04.2024 ORDER PER M. BALAGANESH, ACCOUNTANT MEMBER : 1. This appeal filed by the assessee in ITA No.3152/Del/2023 for A.Y. 2017-18 arises out of the order by Commissioner of Income Tax (Appeals)-7, Delhi (hereinafter referred to as ld CIT(A) in short). 2. Though the assessee has raised several grounds, the only effective issue to be decided in this appeal is as to whether the ITA No.3152/Del/2023 2 learned CIT(A) was justified in confirming the disallowance made under section 14A r.w. Rule 8D of the Income Tax Rules specially when the assessee has not earned any dividend income at all. 3. We have heard rival submissions and perused the material available on record. The issue in dispute is no longer res integra in view of the recent decision of Hon’ble Jurisdictional High Court in the case of PCIT vs. Era Infrastructure (India) Ltd. reported in 448 ITR 674 wherein the Hon’ble Delhi High Court even after considering the amendment brought by Finance Act, 2022 in Section 14A by holding that the said amendment could only be given prospective application had held that in the absence of exempt income, no disallowance under section 14A of the Act could be made up to A.Y. 2021-22. In the instant case, there is no dispute that there is no exempt income derived by the assessee and hence, the ratio of the aforesaid decision squarely applies to the instant case. Hence, grounds raised by the assessee are hereby allowed. 4. In the result, appeal of the assessee is allowed. Order pronounced in the open court on 29.04.2024 Sd/- Sd/- (SAKTIJIT DEY) (M. BALAGANESH) VICE PRESIDENT ACCOUNTANT MEMBER Date:- 29.04.2024 PY* ITA No.3152/Del/2023 3 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI