ACIT, New Delhi V. M/s Triune Projects Pvt. Ltd., New Delhi

ITA 3436/DEL/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 4503 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 3 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-09-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2010-2011
• Appeal Filed On: 09-06-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Earning of tax free income
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F , NEW DELHI BEFORE SH. N. K. SAINI, AM AND SH. KULDIP SINGH , JM ITA NO. 3436 /DEL/2016 : ASSTT. YEAR : 2010 - 1 1 ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE - 25(2 ), NEW DELHI VS M/S TRIUNE PROJECTS PVT. LTD., 11 TH FLOOR, INTERNATIONAL TRADE TOWER, KALKAJI, NEHRU PLACE, NEW DELHI (APPELLANT) (RESPONDENT) PAN NO. A AACT0475H ASSESSEE BY : NONE REVENUE BY : SH. DEEPAK GARG , SR. DR DATE O F HEARING : 28 .09 .201 7 DATE OF PRONOUNCEMENT : 28 . 0 9 .201 7 ORDER PER N. K. SAINI, AM: THIS IS AN APPEAL BY THE DEPARTMENT AGAINST THE ORDER DATED 01.03 .2016 OF LD. CIT(A) - 1 4 , NEW DELHI . 2. DURING THE COURSE OF HEARING NOBODY WAS P RESENT ON BEHALF OF THE ASSESSEE NEITHER ANY ADJOURNMENT WAS SOUGHT. WE, THEREFORE, PROCEEDED EX - PARTE QUA THE ASSESSEE. 3 . THE ONLY GROUND RAISED IN THE DEPARTMENTAL APPEAL READS AS UNDER: 1. ON THE FACTS AND IN THE CIRCUMSTANCE OF THE CASE AND IN LAW T HE ORDER PASSED BY LD. CIT(A) IS ERRONEOUS AND THE LEARNED CIT(A) HAS ERRED IN DELETING ADDITION OF RS.37,98,659/ - ON ACCOUNT OF DISALLOWANCE U/S 14A. ITA NO. 3436 /DEL /201 6 TRIUNE PROJECTS PVT. LTD. 2 4 . FACTS OF THE CASE IN BRIEF ARE THAT THE ASSESSEE HAD MADE CERTAIN INVESTMENTS IN SHARES/MUTUAL FUNDS /BONDS ETC. OUT OF ITS FUNDS WHICH YIELDED TAX FREE INCOME IN THE FORM OF DIVIDEND WHICH DID NOT FORM PART OF TOTAL INCOME OF THE ASSESSEE. THE ASSESSEE VOLUNTARILY DISALLOWED A SUM OF RS.12,22,257/ - BEING 10% OF THE TOTAL EXEMPT INCOME, KEEPING IN VIEW TH E PAST PRACTICE , SINCE NO EXPENSES WERE DIRECTLY INCURRED IN EARNING EXEMPT INCOME IN TERMS OF SECTION 14A OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT). HOWEVER, THE AO MADE THE DISALLOWANCE OF RS.37,98,659/ - BY INVOKING THE PROVISIONS OF SECTION 14A OF THE ACT R.W.R. 8D OF THE INCOME TAX RULES, 1962. 5 . BEING AGGRIEVED THE ASSESSEE CARRIED THE MATTER TO THE LD. CIT(A) WHO DELETED THE DISALLOWANCE MADE BY THE AO BY OBSERVING AS UNDER: DURING THE COURSE OF APPELLATE PROCEEDINGS THE LD. AR HAS FILED PAPER BOOK AND WRITTEN SUBMISSIONS WHICH ARE PLACED ON RECORD. ON PERUSAL OF SUBMISSIONS IT IS NOTICED THAT THE HON'BLE ITAT, NEW DELHI VIDE ITS ORDER DATED 10.02.2016 IN ITA NO. 3917/DEL/2011 FOR AY 2008 - 09 HAS ALLOWED THIS GROUND OF APPEAL IN THE FAVOUR OF THE APPELLANT VIDE PARA NOS. 7 & 8 ON PAGE NOS. 4 TO 7 OF THE SAID ORDER. THE COPY OF THE HON'BLE TRIBUNAL'S ORDER IS PLACED ON RECORD. SINCE, THERE IS NO NEW FACTS ON RECORD AND FACTS AND CIRCUMSTANCES OF THE APPELLANT'S CASE FOR THE YEA R UNDER CONSIDERATION ARE IDENTICAL, THEREFORE, RESPECTFULLY FOLLOWING THE ABOVE MENTIONED DECISION OF THE HON'BLE JURISDICTIONAL ITAT I DELETE DISALLOWANCE OF RS.37,98,659/ - U/S 14A OF THE ACT. HENCE, THE GROUND OF APPEAL IS ALLOWED. ITA NO. 3436 /DEL /201 6 TRIUNE PROJECTS PVT. LTD. 3 6 . NOW THE DEPARTM ENT IS IN APPEAL. DURING THE COURSE OF HEARING, THE LD. DR ALTHOUGH SUPPORTED THE ORDER OF THE AO BUT COULD NOT REBUT THE FINDINGS GIVEN BY THE LD. CIT(A). 7. AFTER CONSIDERING THE SUBMISSIONS OF THE LD. DR AND THE MATERIAL ON RECORD, IT IS NOTICED THAT T HE LD. CIT(A) DELETED THE IMPUGNED DISALLOWANCE BY FOLLOWING THE DECISION OF THE ITAT VIDE ORDER DATED 10.02.2016 IN ITA NO. 3917/DEL/2011 FOR THE ASSESSMENT YEAR 2008 - 09 IN ASSESSEE S OWN CASE. WE, THEREFORE, DO NOT SEE ANY VALID GROUND TO INTERFERE WITH THE FINDINGS OF THE LD. CIT(A). 8 . IN THE RESULT, THE APPEAL OF THE DEPARTMENT IS DISMISSED. (O RD E R PRONOUNCED IN THE COURT ON 28 /0 9 /2017 ) SD/ - SD/ - ( KULDIP SINGH ) (N. K. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER DAT ED: 28 /09 /2017 *SUBODH* COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(APPEALS) 5 . DR: ITAT ASSISTANT REGISTRAR