ACIT, New Delhi V. M/s. Milk Food Ltd., New Delhi

ITA 5280/DEL/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 3403 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 2 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-11-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2010-2011
• Appeal Filed On: 25-08-2015
• 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.5280/DEL/2015 ASSESSMENT YEAR: 2010-11 ACIT, CENTRAL CIRCLE-04, ARA CENTRE, JHANDEWALAN EXTN., NEW DELHI. VS. MILK FOOD LTD., 5 TH FLOOR, BHANDARI HOUSE, 91, NEHRU PLACE, NEW DELHI. PAN: AAACM5913B (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI R.S. SINGHVI, CA DEPARTMENT BY : SHRI ATIQ AHMAD, SR. DR DATE OF HEARING : 21.11.2017 DATE OF PRONOUNCEMENT : 22.11.2017 ORDER PER R.S. SYAL, VP: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAIN ST THE ORDER PASSED BY THE CIT(A) ON 24.04.2015 IN RELATION TO T HE ASSESSMENT YEAR 2010-11. ITA NO.5280/DEL/2015 2 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST DELETION OF DISALLOWANCE U/S 14A AMOUNTING TO RS.36,84,029/-. 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE ASSESSING OFFICER COMPUTED DISALLOWANCE U/S 14A READ WITH RULE 8D AT RS.36,84,029/- DESPITE NOTICING ON PAGE 5 OF THE ASSESSMENT ORDER THAT THE ASSESSEE DID NOT EARN ANY EXEMPT INCOME. THE LD. CIT(A) DELETED THE ADDITION BY FOLLOWING CERTAIN JUDGMENTS. THE REVENUE IS AGGRIE VED AGAINST SUCH DELETION OF ADDITION AND IS 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 NOT MAKING ANY DISALLOWANCE U/S 14A IN THE ABSENCE OF ANY EXEMPT ITA NO.5280/DEL/2015 3 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 22 ND NOVEMBER, 2017. SD/- SD/- [BEENA PILLAI] [R.S. SYAL] JUDICIAL MEMBER VICE PRESIDENT DATED, 22 ND NOVEMBER, 2017. DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.