DCIT, New Delhi V. M/s. Jaypee Commodities Ltd., New Delhi

ITA 4090/DEL/2015

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 7093 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 6 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-01-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 05-01-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 22-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAVI JAIN
• Assessee Lawyers: ASHISH CHADHA
• 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 A AA A : 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 KULDIP SINGH SHRI KULDIP SINGH SHRI KULDIP SINGH SHRI KULDIP SINGH, JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER ITA NO ITA NO ITA NO ITA NO . .. . 4090//DEL/2015 4090//DEL/2015 4090//DEL/2015 4090//DEL/2015 ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : 2010 2010 2010 2010 - -- - 11 1111 11 DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -29, 29, 29, 29, N NN NEW DELHI. EW DELHI. EW DELHI. EW DELHI. VS. VS. VS. VS. M/S JAYPEE COMMODITIES LIMITED, M/S JAYPEE COMMODITIES LIMITED, M/S JAYPEE COMMODITIES LIMITED, M/S JAYPEE COMMODITIES LIMITED, 1114, NAURANG HOUSE, 1114, NAURANG HOUSE, 1114, NAURANG HOUSE, 1114, NAURANG HOUSE, 21, K.G. MARG, 21, K.G. MARG, 21, K.G. MARG, 21, K.G. MARG, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. PAN : AABCJ7692K. PAN : AABCJ7692K. PAN : AABCJ7692K. PAN : AABCJ7692K. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI RAVI JAIN, CIT - DR. RESPONDENT BY : SHRI VED JAIN, ADVOCATE AND SHRI ASHISH CHADHA AND SHRI ASHISH GOEL, CAS. DATE OF HEARING : 05.01.2017 05.01.2017 05.01.2017 05.01.2017 DATE OF PRONOUNCEMENT : 10.01.2017 10.01.2017 10.01.2017 10.01.2017 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 REVENUE FOR THE ASSESSMENT YEAR 2010-11 IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-30, NE W DELHI DATED 16 TH FEBRUARY, 2015. 2. THE ONLY GROUND RAISED BY THE REVENUE IS AGAINST THE DELETION OF DISALLOWANCE OF EXPENDITURE UNDER SECTION 14A READ WITH RULE 8D. 3. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D PERUSED THE MATERIAL PLACED BEFORE US. AT THE TIME OF HEARING BEFORE US, THE LEARNED COUNSEL FOR THE ASSESSEE HAS POINTED OUT TH AT THE ASSESSEE HAS EARNED NO DIVIDEND INCOME DURING THE YEAR UNDER CON SIDERATION. THUS, THERE WAS NO EXEMPT INCOME. THEREFORE, SECTION 14A CANNOT BE PRESSED INTO OPERATION. WE FIND THIS ISSUE TO BE C OVERED IN FAVOUR OF ITA-4090/DEL/2015 2 THE ASSESSEE BY THE DECISION OF HON'BLE JURISDICTIO NAL HIGH COURT IN THE CASE OF CHEMINVEST LIMITED VS. CIT-VI [2015] 378 ITR 33 (DELHI) AND CIT VS. HOLCIM INDIA P.LTD. [2014] 272 CTR 282 (D ELHI), WHEREIN HON'BLE JURISDICTIONAL HIGH COURT HAS HELD THAT IF THERE IS NO EXEMPT INCOME, THEN NO DISALLOWANCE U/S 14A OF THE ACT CAN BE MADE. ADMITTEDLY, IN THE CASE OF THE ASSESSEE, THERE IS N O EXEMPT INCOME. THEREFORE, RESPECTFULLY FOLLOWING THE ABOVE DECISIO NS OF HON'BLE JURISDICTIONAL HIGH COURT, WE UPHOLD THE ORDER OF L EARNED CIT(A) AND DELETE THE DISALLOWANCE OF `30,60,000/- MADE BY THE ASSESSING OFFICER U/S 14A READ WITH RULE 8D. THE GROUND RAISED BY TH E REVENUE IS THUS DISMISSED. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. DECISION PRONOUNCED IN THE OPEN COURT ON 10.01.2017 . SD/- SD/- (KULDIP SINGH (KULDIP SINGH (KULDIP SINGH (KULDIP SINGH ) )) ) ( (( ( 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 : DEPUTY COMMISSIONER OF INCOME TA X, DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -29, NEW DELHI. 29, NEW DELHI. 29, NEW DELHI. 29, NEW DELHI. 2. RESPONDENT : M/S JAYPEE COMMODITIES LIMITED, M/S JAYPEE COMMODITIES LIMITED, M/S JAYPEE COMMODITIES LIMITED, M/S JAYPEE COMMODITIES LIMITED, 1114, NAURANG HOUSE, 21, K.G. MARG, NEW DELHI. 1114, NAURANG HOUSE, 21, K.G. MARG, NEW DELHI. 1114, NAURANG HOUSE, 21, K.G. MARG, NEW DELHI. 1114, NAURANG HOUSE, 21, K.G. MARG, NEW DELHI. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR