DCIT, New Delhi V. M/s. Aksh Optifibre Ltd., New Delhi

ITA 5261/DEL/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 3604 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 1 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-11-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 07-06-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 26-09-2014
• 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 : F : NEW DELHI BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SMT BEENA PILLAI, JUDICIAL MEMBER ITA NO.5261/DEL/2014 ASSESSMENT YEAR: 2010-11 ITA NO.4342/DEL/2015 ASSESSMENT YEAR : 2011-12 DCIT, CIRCLE-2(1), NEW DELHI. VS. AKSH OPTIFIBER LTD., B-1, ENKAY TOWER, VANIJYA NIKUNJ, UDYOG VIHAR, PHASE V, GURGAON. PAN: AAACA0062F (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI KAPIL GOEL, ADVOCATE DEPARTMENT BY : SHRI ATIQ AHMAD, SR. DR DATE OF HEARING : 16.11.2017 DATE OF PRONOUNCEMENT : 17.11.2017 ITA NO.5261/DEL/2014 ITA NO.4342/DEL/2015 2 ORDER PER R.S. SYAL, VP: THESE TWO APPEALS FILED BY THE REVENUE RELATE TO T HE ASSESSMENT YEARS 2010-11 AND 2011-12. 2. SINCE COMMON ISSUE IS RAISED IN BOTH THESE APPEA LS, WE ARE PROCEEDING TO DISPOSE THEM OFF BY THIS CONSOLIDATED ORDER FOR THE SAKE OF CONVENIENCE. 3. BRIEFLY STATED, THE FACTS FOR THE ASSESSMENT YEA R 2010-11 ARE THAT THE ASSESSING OFFICER COMPUTED DISALLOWANCE U/S 14A AT RS.66,59,080/- BY APPLYING RULE 8D. THE LD. CIT(A) NOTICED THAT N O EXEMPT INCOME WAS EARNED BY THE ASSESSEE DURING THE YEAR. HE, TH EREFORE, DELETED THE DISALLOWANCE. THE FACTS FOR THE ASSESSMENT YEAR 20 11-12 ARE SIMILAR INASMUCH AS THE ASSESSING OFFICER COMPUTED DISALLOW ANCE FOR A SUM OF RS.76,60,710/- BY APPLYING THE PROVISIONS OF RULE 8 D. THE LD. CIT(A) NOTED FOR THIS YEAR AS WELL THAT NO EXEMPT INCOME W AS EARNED BY THE ASSESSEE. HE, THEREFORE, DELETED THE DISALLOWANCE MADE. ITA NO.5261/DEL/2014 ITA NO.4342/DEL/2015 3 4. HAVING HEARD BOTH THE SIDES AND PERUSED THE RELE VANT MATERIAL ON RECORD, WE 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 INCOME, WHICH ARE SQUARELY APPLICABLE TO THE FACTS OF THE INSTANT CASE, WE UPHOLD THE VIEW TAKEN BY THE LD. CIT(A) ON THIS ISS UE. 5. IN THE RESULT, BOTH THE APPEALS ARE DISMIS SED. ORDER PRONOUNCED IN THE OPEN COURT ON 17 TH NOVEMBER, 2017. SD/- SD/- [BEENA PILLAI] [R.S. SYAL] JUDICIAL MEMBER VICE PRESIDENT DATED,17 TH NOVEMBER, 2017. ITA NO.5261/DEL/2014 ITA NO.4342/DEL/2015 4 DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.