Milan Dairy Foods (P) Ltd., New Delhi V. ACIT, CIRCLE- 5(1), New Delhi

ITA 4431/DEL/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 7213 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 7 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 11-06-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Earning of tax free income
• Section: 143(3); 14A; 201

Judgement Text

PAGE | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH B +SMC : NEW DELHI BEFORE SHRI SUDHANSHU SRIVASTAVA , JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA NO. 4431/DEL/2018 (ASSESSMENT YEAR: 2008 - 09 ) MILAN DAIRY FOOD (P) LTD, 22/218, WEST PATEL NAGAR, NEW DELHI PAN: AACCM5333P VS. ACIT, CIRCLE - 5(1), NEW DELHI (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI V. RAJA KUMAR, ADV REVENUE BY: SHRI UMESH TAKYAR, SR. DR DATE OF HEARING 31/10 / 201 9 DATE OF PRONOUNCEMENT 2 7 / 01 / 2020 O R D E R PER PRASHANT MAHARISHI, A. M. 1 . THIS APPEAL IS FILED BY THE ASSESSEE AGAINST PROVISION OF SECTION 14A APPLIED. THE REGISTRY NOTED THAT THE APPEAL OF THE ASSESSEE IS DELAYED 884 DAYS. THE REASONS GIVEN BY THE ASSESSEE IN THE APPLICATION THAT THE COMPANY GENERAL MANAGER RETIRED FROM THE SERVICE OF THE COMPANY AND THE NOW INCUMBENT DI D NOT GET LINKED WITH THE PENDING TASK AND THEREFORE APPEAL COULD NOT BE FILED. THE APPEAL WAS FILED WHEN COUNSEL AT THE TIME OF PENALTY PROCEEDINGS INFORMED THE ASSESSEE. AS NOBODY IS BENEFITTED BY DELAYING FILING OF APPEAL AND THE REASONS SHOWN BY THE AS SESSEE IS ALSO SUPPORTED THAT EMPLOYEE DETAILS OF RETIRED EMPLOYEE, WE CONDONE THE DELAY. 2 . THE ORDER OF THE LD CIT(A) - 19, NEW DELHI DATED 30.10.2015 FOR THE ASSESSMENT YEAR 2008 - 09. 3 . THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: - 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD CIT(A) ERRED IN CONFIRMING THE ADDITION MADE BY THE ASSESSING OFFICER BY INVOKING THE PROVISION OF SECTION 14A OF THE INCOME TAX ACT, 1961 EVEN THOUGH THERE WAS NO EXEMPT INCOME EARNED DU RING THE RELEVANT YEAR. THE ACTION BEING ARBITRARY, ERRONEOUS AND UNLAWFUL MUST BE QUASHED WITH DIRECTIONS FOR APPROPRIATE RELIEF. 4 . ASSESSEE FILED HIS RETURN OF INCOME OF RS. 2879610/ - WHEREIN, THE ADDITION OF RS. 217272/ - WAS MADE U/S 14A OF THE ACT. THE ASSESSEE PREFERRED PAGE | 2 APPEAL WHICH REACHED THE LEVEL OF THE ITAT. THE ITAT REMITTED THE MATTER BACK TO THE FILE OF THE LD AO. THE LD AO PASSED FRESH ASSESSMENT ORDER U/S 254 READ WITH SECTION 143(3) OF THE ACT ON 07.03.2014 WHEREIN, HE ONCE AGAIN MADE AN ADDITION OF RS. 217272/ - . THE ASSESSEE PREFERRED AN APPEAL BEFORE THE LD CIT(A). THE LD CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE. HEN CE, ASSESSEE IS IN APPEAL BEFORE US. 5 . THE ASSESSEE SUBMITTED THAT IT HAS NOT INCURRED ANY EXPENDITURE ON INVESTMENT IN SHARES AND IT HAS ALSO NOT EARNED ANY EXEMPT INCOME. DESPITE THIS FACT THE ADDITION WAS MADE BY THE LD AO AND CONFIRMED BY THE LD CIT(A). 6 . THE LD AR REITERATED THE SUBMISSION BEFORE THE LD AO. 7 . THE LD DR SUPPORTED THE ORDERS OF THE LOWER AUTHORITIES. 8 . WE HAVE CAREFULLY CONSIDERED THE RIVAL CONTENTIONS ASSESSEE HAS CONTESTED BEFORE THE LOWER AUTHORITIES THAT IT HAS NOT EARNED ANY EXEMPT I NCOME DURING THE YEAR. THE ABOVE FACT IS NOT DISPUTED. IT IS NOW AN ESTABLISHED FACT BY PLETHORA OF JUDICIAL PRECEDENTS IF THERE IS NO EXEMPT INCOME THERE CANNOT BE ANY DISALLOWANCE U/S 14A OF THE ACT. IN VIEW OF THIS THE DISALLOWANCE MADE BY THE LD AO AND SUSTAINED BY THE LD CIT(A) DESERVES TO BE QUASHED. 9 . IN THE RESULT THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 2 7 / 01 / 2020 . - SD/ - - SD/ - ( SUDHANSHU SRIVASTAVA ) (PRASHANT MAHARISHI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 2 7 / 01 / 2020 A K KEOT COPY FORWARDED TO 1 . APPLICANT 2 . RESPONDENT 3 . CIT 4 . CIT (A) 5 . DR:ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI