ACIT, New Delhi V. M/s IL & FS Energy Development Co. Ltd., New Delhi

ITA 329/DEL/2017

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 0433 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 11 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-12-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 19-01-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K SAROHA
• Keywords: Rule 8D
• Section: 143(3); 14A

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C, NEW DELHI ! !! ! ! !! !#$% #$% #$% #$% & & & & ' ' ' ' BEFORE MS. SUSHMA CHOWLA, JM & SH. N.K.BILLAIYA, AM ! !! ! / ITA NO.329/DEL/2017 (( (( (( (( / ASSESSMENT YEAR 2012-13 THE ACIT, CIRCLE-12(1), ROOM NO.-405, C.R.BUILDING, NEW DELHI. . )*+, / RESPONDENT VS IL & FS ENERGY DEVELOPMENT CO.LTD., A-268, 1 ST FLOOR, BHISM PITAMAH MARG, DEFENCE COLONY, NEW DELHI-110024. PAN-AABCI6885K .......... +, /APPELLANT +,-. / APPELLANT BY : SH. A.K.SAROHA, CIT DR )*+,-. / RESPONDENT BY : NONE -/0& / DATE OF HEARING : 19.12.2019 12-/0& / DATE OF PRONOUNCEMENT: 19 .12.2019 / ORDER PER SUSHMA CHOWLA, JM: THE APPEAL FILED BY REVENUE IS AGA INST ORDER OF CIT(A)- 12, NEW DELHI DATED 28.10.2016 RELATING TO ASSESSME NT YEAR 2012-13 AGAINST THE ORDER PASSED UNDER SECTION 143(3) OF TH E INCOME TAX ACT, 1961 (IN SHORT ACT). 2 ITA NO:329/DEL/2017 ASSESSMENT YEAR: 2012-13 2. DESPITE SERVICE OF NOTICE, NONE APPEARED ON BEH ALF OF THE ASSESSEE NOR ANY APPLICATION WAS FILED SEEKING ADJOURNMENT. 3. HOWEVER, ON PERUSAL OF THE RECORD, WE FIND THAT ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST THE DISALLOWANCE MADE U/S 14 A OF THE ACT BY THE ASSESSING OFFICER AT APPROX.RS.11.02 CRORES, WHICH WAS REVERSED BY THE CIT(A) ON THE GROUND THAT THE ASSESSEE DURING THE Y EAR UNDER CONSIDERATION HAD NOT EARNED ANY DIVIDEND INCOME. THE CIT(A) REL IED ON THE RATIO LAID DOWN BY THE HONBLE DELHI HIGH COURT IN CHEMINVEST LTD. VS CIT, 378 ITR 33 (DELHI). THE REVENUE IS IN APPEAL AGAINST THE O RDER OF CIT(A). 4. WE FIND THAT THE ISSUE RAISED IN THE PRESENT APP EAL STANDS SQUARELY COVERED BY THE DECISION OF THE HONBLE DELHI HIGH C OURT IN CHEMINVEST LTD. VS CIT (SUPRA) WHEREIN IT HAS BEEN LAID DOWN THAT W HERE THE ASSESSEE HAS MADE STRATEGIC INVESTMENT IN WHICH IT HAD NOT EARNE D ANY EXEMPTED INCOME AND GENUINENESS OF EXPENDITURE WAS NOT IN DOUBT, NO DISALLOWANCE U/S 14A READ WITH RULE 8D COULD BE MADE. THE RELEVANT FI NDINGS OF THE DELHI HIGH COURT ARE AS UNDER:- EXPRESSION DOES NOT FORM PART OF THE TOTAL INCOME IN SECTION 14A ENVISAGES THAT THERE SHOULD BE AN ACTUAL RECEIP T OF INCOME WHICH WAS NOT INCLUDIBLE IN THE TOTAL INCOME , DURING THE RELEVANT PREVIOUS YEAR FOR THE PURPOSE OF DISAL LOWING ANY EXPENDITURE INCURRED IN RELATION TO THE SAID INCOME . 5. THE CIT(A) HAS RELIED ON THE DECISION OF HONBLE HIGH COURT IN PARA 9.5 IN VIEW OF THE ISSUE BEING DECIDED BY THE JURIS DICTIONAL HIGH COURT. WE FIND NO MERIT IN THE PRESENT APPEAL FILED BY THE RE VENUE. 3 ITA NO:329/DEL/2017 ASSESSMENT YEAR: 2012-13 6. IN THE RESULT, APPEAL OF REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 19 TH DAY OF DECEMBER, 2019. SD/- SD/- (N.K.BILLAIYA) (SU SHMA CHOWLA) & & & & /ACCOUNTANT MEMBER /JUDICIAL MEMBER / DATED : 19 TH DECEMBER, 2019 . * AMIT KUMAR * -)/#4#/5 COPY OF THE ORDER IS FORWARDED TO : 1. +, / THE APPELLANT 2. )*+, / THE RESPONDENT 3. 6 7 8 / THE CIT(A) 4. 9 6 / THE PR. CIT 5. 6. #:; )/ / DR, ITAT, DELHI ;<(=5 GUARD FILE. / BY ORDER , *#/)/ // TRUE COPY // ?@A ?@A ?@A ?@A , ASSISTANT REGISTRAR, ITAT, DELHI