ACIT, New Delhi V. M/s. Fortis Hospitals Ltd., New Delhi

ITA 5277/DEL/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 3603 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 2 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-11-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2011-2012
• Appeal Filed On: 25-08-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: R M MEHTA
• 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.5277/DEL/2015 ASSESSMENT YEAR: 2011-12 ACIT, CIRCLE-9(2), CR BUILDING, NEW DELHI. VS. FORTIS HOSPITALS LTD., C/O ESCORTS HEART INSTT. & RES. CENTRE, OKHLA ROAD, NEW DELHI. PAN: AABCF3718N (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI R.M. MEHTA, ADVOCATE DEPARTMENT BY : SHRI ATIQ AHMAD, SR. DR DATE OF HEARING : 16.11.2017 DATE OF PRONOUNCEMENT : 17.11.2017 ORDER PER R.S. SYAL, VP: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAIN ST THE ORDER PASSED BY THE CIT(A) ON 29.06.2015 IN RELATION TO T HE ASSESSMENT YEAR 2011-12. ITA NO.5277/DEL/2015 2 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAIN ST THE DELETION OF ADDITION OF RS.35,16,935/- MADE BY THE ASSESSING OF FICER ON ACCOUNT OF DISALLOWANCE U/S 14A READ WITH RULE 8D. 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE ASSESSING OFFICER MADE DISALLOWANCE U/S 14A AMOUNTING TO RS.35,16,935 /- BY APPLYING THE PROVISIONS OF RULE 8D. THE LD. CIT(A) DELETED THE A DDITION BY OBSERVING IN PARA 2.1 OF THE IMPUGNED ORDER THAT NO EXEMPT IN COME WAS EARNED BY THE ASSESSEE DURING THE YEAR. THE REVENUE HAS COME UP IN APPEAL BEFORE US. 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 FOR ITA NO.5277/DEL/2015 3 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, THE APPEAL IS DISMISSED. 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. DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.