Sh. R.N. Sahni, New Delhi V. Addl. CIT, New Delhi

ITA 496/DEL/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 7646 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 3 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-05-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: F
• Next Hearing Date: 24-05-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 28-01-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SUSAN D GEORGE SENIOR
• Assessee Lawyers: P N MEHTA
• Keywords: Opportunity of being heard
• 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 . .. . 496/DEL/2014 496/DEL/2014 496/DEL/2014 496/DEL/2014 ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : 2008 2008 2008 2008 - -- - 09 0909 09 SHRI R.N. SAHNI, SHRI R.N. SAHNI, SHRI R.N. SAHNI, SHRI R.N. SAHNI, 51, PASCHIMI MARG, 51, PASCHIMI MARG, 51, PASCHIMI MARG, 51, PASCHIMI MARG, VASANT VIHAR, VASANT VIHAR, VASANT VIHAR, VASANT VIHAR, N NN NEW DELHI EW DELHI EW DELHI EW DELHI 110 057. 110 057. 110 057. 110 057. PAN : ABJPS2875D. PAN : ABJPS2875D. PAN : ABJPS2875D. PAN : ABJPS2875D. VS. VS. VS. VS. ADDITIONAL COMMISSIONER OF ADDITIONAL COMMISSIONER OF ADDITIONAL COMMISSIONER OF ADDITIONAL COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, RANGE RANGE RANGE RANGE- -- -24, 24, 24, 24, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI P.N. MEHTA, FCA. RESPONDENT BY : MS. SUSAN D. GEORGE, SENIOR DR. DATE OF HEARING : 24.05.2016 24.05.2016 24.05.2016 24.05.2016 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 2008-09 IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-XI, NE W DELHI DATED 28 TH OCTOBER, 2013. 2. THE ONLY GROUND RAISED BY THE ASSESSEE IN THIS A PPEAL READS AS UNDER:- ON THE FACTS & CIRCUMSTANCES OF THE CASE THE COMMISSIONER (APPEALS) IS WRONG IN CONFIRMING THE O RDER OF THE ASSESSING OFFICER FOR DISALLOWANCE OF INTEREST AMOUNTING TO RS.16,56,886/-. 3. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D PERUSED THE MATERIAL PLACED BEFORE US. WE FIND THAT THE ASSESS ING OFFICER DISALLOWED THE INTEREST OF `16,56,886/- ON THE GROU ND THAT THE BORROWED MONEY HAS BEEN UTILIZED FOR INVESTMENT IN THE SHARES OF M/S ALPS HOTELS PVT.LTD. IN OUR OPINION, IN SUCH CIRCU MSTANCES, THE ITA-496/DEL/2014 2 DISALLOWANCE, IF ANY, SHOULD HAVE BEEN CONSIDERED A S PER PROVISION OF SECTION 14A. THE ASSESSING OFFICER HAS NOT AT ALL APPLIED SECTION 14A. IT WAS ALSO CLAIMED BY THE ASSESSEE THAT NO DIVIDEN D INCOME WAS RECEIVED AND, THEREFORE, ON APPLICATION OF SECTION 14A, THERE WOULD BE NO DISALLOWANCE IN VIEW OF THE DECISION OF HON'BLE DELHI HIGH COURT IN THE CASE OF CHEMINVEST 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.486/2014 & 299/2014, ORDER DATED 5 TH SEPTEMBER, 2014. IN OUR OPINION, THE ENTIRE MATTER NEEDS RE-EXAMINATION FRO M THE ANGLE OF SECTION 14A. WE, THEREFORE, SET ASIDE THE ORDERS O F AUTHORITIES BELOW AND RESTORE THE MATTER TO THE FILE OF THE ASSESSING OFFICER AND DIRECT HIM TO RE-EXAMINE THE ISSUE FROM THE PERSPECTIVE OF SECTION 14A AND MAKE THE DISALLOWANCE IN ACCORDANCE WITH LAW, IF AN Y. NEEDLESS TO MENTION THAT HE WILL ALLOW ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DEE MED TO BE ALLOWED FOR STATISTICAL PURPOSES. 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 : SHRI R.N. SAHNI, SHRI R.N. SAHNI, SHRI R.N. SAHNI, SHRI R.N. SAHNI, 51, PASCHIMI MARG, VASANT VIHAR, 51, PASCHIMI MARG, VASANT VIHAR, 51, PASCHIMI MARG, VASANT VIHAR, 51, PASCHIMI MARG, VASANT VIHAR, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 057. 110 057. 110 057. 110 057. 2. RESPONDENT : ADDITIONAL COMMISSIONER OF INCOME T AX, ADDITIONAL COMMISSIONER OF INCOME TAX, ADDITIONAL COMMISSIONER OF INCOME TAX, ADDITIONAL COMMISSIONER OF INCOME TAX, RANGE RANGE RANGE RANGE- -- -24, NEW DELHI. 24, NEW DELHI. 24, NEW DELHI. 24, NEW DELHI. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR