ITO, Ward-21(1), New Delhi V. Rajat Fincap P.Ltd, Faridabad

ITA 4897/DEL/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 2848 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-12-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 01-08-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Earning of tax free income
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : SMC : NEW DELHI BEFORE SHRI R.S. SYAL, VICE PRESIDENT ITA NO.4897/DEL/2017 ASSESSMENT YEAR : 2013-14 ITO, WARD-21(1), NEW DELHI. VS. RAJAT FINCAP PVT. LTD., 565, SECTOR 7B, FARIDABAD. PAN: AACCR3828A ASSESSEE BY : SHRI SOMIL AGGARWAL & SHRI LAKSHYA, ADVOCATES DEPTT. BY : SHRI AMIT JAIN, SR. DR DATE OF HEARING : 21.12.2017 DATE OF PRONOUNCEMENT : 21.12.2017 ORDER THIS APPEAL BY THE REVENUE ARISES OUT OF THE ORDER PASSED BY THE CIT(A) ON 26.05.2017 IN RELATION TO THE ASSE SSMENT YEAR 2013-14. ITA NO.4897/DEL/2017 2 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAIN ST THE DELETION OF ADDITION OF RS.43,09,477/- MADE BY THE ASSESSING OF FICER U/S 14A READ WITH RULE 8D. 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE ASSESSEE IS A NON- BANKING COMPANY. NO EXEMPT INCOME WAS EARNED. THE ASSESSING OFFICER INVOKED SECTION 14A OF THE ACT. BY APPLYIN G RULE 8D, HE MADE DISALLOWANCE OF EXPENSES OF RS.43,09,477/-. THE LD . CIT(A) DELETED THIS ADDITION BY OBSERVING THAT NO EXEMPT INCOME WAS EAR NED. 4. HAVING HEARD BOTH THE SIDES AND PERUSED THE RELE VANT MATERIAL ON RECORD, I FIND THAT THIS ISSUE IS NO MORE RES INTEGRA IN VIEW OF THE JUDGMENT OF THE HON'BLE JURISDICTIONAL HIGH COURT I N THE CASE CHEMINVEST LTD. VS. CIT (2015) 378 ITR 33 (DEL) , WHEREIN IT HAS BEEN HELD THAT IF THERE IS NO EXEMPT INCOME, THERE CAN B E NO QUESTION OF MAKING ANY DISALLOWANCE U/S 14A. SIMILAR VIEW HAS BEEN TAKEN BY THE HON'BLE JURISDICTIONAL HIGH COURT IN CIT VS. HOLCIM INDIA P. LTD. (2014) 90CCH 081-DEL-HC . IN VIEW OF THESE BINDING PRECEDENTS PROVIDING FO R NOT MAKING ANY DISALLOWANCE U/S 14A IN THE ABSENCE OF ANY EXEMPT ITA NO.4897/DEL/2017 3 INCOME, WHICH ARE SQUARELY APPLICABLE TO THE FACTS OF THE INSTANT CASE, I UPHOLD THE VIEW TAKEN BY THE LD. CIT(A) ON THIS ISS UE. 5. IN THE RESULT, THE APPEAL FILED BY THE REV ENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 21.12.2017. SD/- [R.S. SYAL] VICE PRESIDENT DATED, 21 ST DECEMBER, 2017. DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.