Rasandik Engineering Industries India Ltd., Gurgaon V. DCIT (LTU), New Delhi

ITA 375/DEL/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 7647 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 4 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-05-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 23-05-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 21-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUSAN D GEORGE SENIOR
• Keywords: Earning of tax free income
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH F FF F : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI BEFORE SHRI BEFORE SHRI BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT AND AND AND AND SHRI CHANDRA MOHAN GARG SHRI CHANDRA MOHAN GARG SHRI CHANDRA MOHAN GARG SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER ITA NO ITA NO ITA NO ITA NO . .. . 375/DEL/2014 375/DEL/2014 375/DEL/2014 375/DEL/2014 ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : 2010 2010 2010 2010 - -- - 11 1111 11 M/S RASANDIK ENGINEERING M/S RASANDIK ENGINEERING M/S RASANDIK ENGINEERING M/S RASANDIK ENGINEERING INDUSTRIES INDIA LTD., INDUSTRIES INDIA LTD., INDUSTRIES INDIA LTD., INDUSTRIES INDIA LTD., 525 525 525 525, GROUND FLOOR, , GROUND FLOOR, , GROUND FLOOR, , GROUND FLOOR, UDYOG VIHAR PHASE UDYOG VIHAR PHASE UDYOG VIHAR PHASE UDYOG VIHAR PHASE- -- -V, V,V, V, NEAR TRIDENT HOTEL, NEAR TRIDENT HOTEL, NEAR TRIDENT HOTEL, NEAR TRIDENT HOTEL, GURGAON GURGAON GURGAON GURGAON 122 016. 122 016. 122 016. 122 016. PAN : AAACR3381A. PAN : AAACR3381A. PAN : AAACR3381A. PAN : AAACR3381A. VS. VS. VS. VS. DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, LARGE TAXPAYER UNIT, LARGE TAXPAYER UNIT, LARGE TAXPAYER UNIT, LARGE TAXPAYER UNIT, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SANJAY AGARWAL, CA. RESPON DENT BY : MS. SUSAN D. GEORGE, SENIOR DR. DATE OF HEARING : 23.05.2016 23.05.2016 23.05.2016 23.05.2016 DATE OF PRONOUNCEMENT : 27.05.2016 27.05.2016 27.05.2016 27.05.2016 ORDER ORDER ORDER ORDER PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP : :: :- -- - THIS APPEAL BY THE ASSESSEE FOR THE ASSESSMENT YEA R 2010-11 IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-LTU, N EW DELHI DATED 28 TH NOVEMBER, 2013. 2. THE GROUNDS RAISED BY THE ASSESSEE IN THIS APPEA L ARE AGAINST THE DISALLOWANCE OF `14,38,422/- UNDER SECTION 14A OF THE INCOME-TAX ACT, 1961 READ WITH RULE 8D. 3. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D PERUSED THE ASSESSMENT ORDER. FROM THE ASSESSMENT ORDER, IT IS CLEAR THAT NO DIVIDEND INCOME WAS EARNED BY THE ASSESSEE DURING T HE PREVIOUS YEAR. WE FIND THIS ISSUE TO BE COVERED IN FAVOUR OF THE A SSESSEE BY THE DECISION OF HON'BLE JURISDICTIONAL HIGH COURT IN TH E CASE OF CHEMINVEST ITA-375/DEL/2014 2 LIMITED VS. CIT-VI IN ITA NO.749/2014, ORDER DATED 2 ND SEPTEMBER, 2015 AND CIT-IV VS. HOLCIM INDIA P.LTD. IN ITA NO.4 86/2014 & 299/2014, ORDER DATED 5 TH SEPTEMBER, 2014, WHEREIN HON'BLE JURISDICTIONAL HI GH COURT HAS HELD THAT IF THERE IS NO EXEMPT INCOME, T HEN NO DISALLOWANCE U/S 14A OF THE ACT CAN BE MADE. ADMITTEDLY, IN THE CASE OF THE ASSESSEE, THERE IS NO EXEMPT INCOME. THEREFORE, RE SPECTFULLY FOLLOWING THE ABOVE DECISIONS OF HON'BLE JURISDICTIONAL HIGH COURT, WE DELETE THE DISALLOWANCE OF `14,38,422/- MADE BY THE ASSESSING OFFICER AND SUSTAINED BY LEARNED CIT(A) U/S 14A OF THE ACT. GR OUND NOS.1 & 2 ARE ACCORDINGLY ALLOWED. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. DECISION PRONOUNCED IN THE OPEN COURT ON 27.05.2016 . SD/- SD/- (CHANDRA MOHAN GARG (CHANDRA MOHAN GARG (CHANDRA MOHAN GARG (CHANDRA MOHAN GARG ) )) ) ( (( ( G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL ) )) ) JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VK. COPY FORWARDED TO: - 1. APPELLANT : M/S RASANDIK ENGINEERING INDUSTR IES IN M/S RASANDIK ENGINEERING INDUSTRIES IN M/S RASANDIK ENGINEERING INDUSTRIES IN M/S RASANDIK ENGINEERING INDUSTRIES INDIA LTD., DIA LTD., DIA LTD., DIA LTD., 525, GROUND FLOOR, UDYOG VIHAR PHASE 525, GROUND FLOOR, UDYOG VIHAR PHASE 525, GROUND FLOOR, UDYOG VIHAR PHASE 525, GROUND FLOOR, UDYOG VIHAR PHASE- -- -V, V,V, V, NEAR TRIDENT HOTEL, GURGAON NEAR TRIDENT HOTEL, GURGAON NEAR TRIDENT HOTEL, GURGAON NEAR TRIDENT HOTEL, GURGAON 122 016. 122 016. 122 016. 122 016. 2. RESPONDENT : DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, LARGE TAXPAYER UNIT, NEW DELHI. LARGE TAXPAYER UNIT, NEW DELHI. LARGE TAXPAYER UNIT, NEW DELHI. LARGE TAXPAYER UNIT, NEW DELHI. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR