JCIT (OSD), C-1, Chandigarh V. M/s Atulaya Healthcare Pvt. Ltd., Chandigarh

ITA 422/CHANDI/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 1275 (ITAT-CHANDIGARH)
• Duration Of Justice: 5 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-09-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 05-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Earning of tax free income
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, A CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND DR. B.R.R. KUMAR, ACCOUNTANT MEMBER ITA NO. 422/CHD/2018 ASSESSMENT YEAR : 2014-15 THE JCIT, VS. M/S ATULYA HEALTHCARE PVT. LTD., CIRCLE 1(1), SCO 112-113, SECTOR 8-C, CHANDIGARH CHANDIGARH PAN NO. AAHCA1551G (APPELLANT) (RESPONDENT) APPELLANT BY : SMT. CHANDERKANTA, SR.DR RESPONDENT BY : SH. PARIKSHIT AGGARWAL, CA DATE OF HEARING : 08.08.2018 DATE OF PRONOUNCEMENT : 07.09 .2018 ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE REVENU E AGAINST THE ORDER DATED 10.01.2018 OF THE COMMISSIONER OF INCOME TAX(A)- 1, CHANDIGARH [HEREINAFTER REFERRED TO AS CIT(A) ] 2. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE HA S INVITED OUR ATTENTION TO THE ORDER OF THE CIT(A), WHEREIN, THE LD. CIT(A) FOLLOWING THE DECISION OF THE HON'BLE JURISDICTIONA L HIGH COURT IN THE CASE OF CIT FARIDABAD VS. LAKHANI MARKETING IN C. LTD (SUPRA) HAS HELD THAT SINCE THE ASSESSEE DID NOT EARN ANY T AX EXEMPT INCOME DURING THE YEAR, HENCE, NO DISALLOWANCE U/S 14A OF THE INCOME-TAX ACT, 1961 (IN SHORT 'THE ACT') WAS ATTRACTED. THE LD. COUNSEL FOR ITA NO. 422-CHD.-2018 M/S ATULAYA HEALTHCARE PVT. LTD, CHANDIGARH 2 THE ASSESSEE HAS FURTHER SUBMITTED THAT FOR THE YE AR UNDER CONSIDERATION, THE ASSESSEE DID NOT EARN ANY TAX EX EMPT INCOME. HE, THEREFORE, SUBMITTED THAT IN THE LIGHT OF THE DECIS ION OF THE HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT FAR IDABAD VS. LAKHANI MARKETING INC. LTD, ITA NO. 970 OF 2008 (O &M), NO DISALLOWANCE WAS ATTRACTED U/S 14A OF THE ACT. 3. THE LD. DR, ON THE OTHER HAND, HAS RELIED ON THE FINDINGS OF THE ASSESSING OFFICER. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS OF THE LD. R EPRESENTATIVES OF BOTH THE PARTIES. WE FIND THAT THE ISSUE IS NOW SQUARELY COVERED BY THE FOLLOWING DECISIONS OF THE DIFFERENT HIGH CO URTS IN FAVOUR OF THE ASSESSEE. CIT, FARIDABAD VS. LAKHANI MARKETING INC. 226 TAXMAN 45 (P&H) CIT VS. WINSOME TEXTILES (2009) 319 ITR 204 (P&H) CHEMINVEST LTD VS. ITO (2015) 378 ITR 33 (DELHI) CORRTECH ENERGY P. LTD. (2014) 45 TAXMAN.COM 116 (GUJARAT HIGH COURT) CIT VS. M/S SHIVAM MOTORS (P) LTD (2014) 272 CTR (ALL) 277 IN ALL THE ABOVE REFERRED TO CASE LAWS, THE HON'BLE HIGH COURTS HAVE BEEN UNANIMOUS TO HOLD THAT NO DISALLOWANCE IS ATTR ACTED U/S 14A OF THE ACT IN CASE THE ASSESSEE HAS NOT EARNED ANY INC OME NOT FORMING PART OF THE TOTAL INCOME. ITA NO. 422-CHD.-2018 M/S ATULAYA HEALTHCARE PVT. LTD, CHANDIGARH 3 5. IN VIEW OF THE ABOVE, WE DO NOT FIND ANY INFIRMI TY IN THE ORDER OF THE CIT(A) ON THIS ISSUE AND THE SAME IS UPHELD. IN THE RESULT, THE APPEAL OF THE REVENUE IS HEREBY DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 07.09.2018 SD/- SD/- (B.R.R KUMAR) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 07.09 .2018 RKK COPY TO: THE APPELLANT THE RESPONDENT THE CIT THE CIT(A) THE DR