DCIT, New Delhi V. M/s. Oscar Investment Ltd., New Delhi

ITA 558/DEL/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 3210 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 9 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-11-2017
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2012-2013
• Appeal Filed On: 03-02-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 143(3); 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: D NEW DELHI BEFORE SHRI G.D. AGRAWAL, HONBLE PRESIDEN T & SHRI K. NARSIMHA CHARY, JUDICIAL MEMBER ITA NO.-558/DEL/2016 ( ASSESSMENT YEAR: 2012-13) DCIT CIRCLE 19(1), ROOM NO. 221, 2 ND FLOOR, C.R. BLDG., I.P. ESTATE, NEW DELHI. VS OSCAR INVESTMENT LTD. 54, JANPATH, NEW DELHI. AAACO1722C ASSESSEE BY NONE REVENUE BY SH. AMIT JAIN, SR. DR ORDER PER SHRI K.N. CHARY, J.M. AGGRIEVED BY THE ORDER DATED 23.11.2015 IN APPEAL NO. 771/CIT(A)-7/DEL/14-15 RELEVANT TO THE ASSESSMENT Y EAR 2012-13 PASSED BY THE LD. COMMISSIONER OF INCOME TAX (APPEA LS)-7, NEW DELHI (HEREINAFTER FOR SHORT REFERRED TO AS THE LD . CIT(A)), REVENUE PREFERRED THIS APPEAL ON THE FOLLOWING GROU NDS: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD.CIT (A) HAS ERRED IN LAW IN DELETING THE DISALLOWANCE U/S 1 4A R.W.R. 8D OF RS. 5,20,11,322/- IN THE LIGHT OF DECISION OF HONB LE DELHI HIGH COURT DATE OF HEARING 13.11.2017 DATE OF PRONOUNCEMENT 14.11.2017 2 ITA NO. 558/DEL/2016 IN THE CASE OF CHEMINVEST LTD. VS. CIT WITHOUT APPR ECIATING THE FACTS THAT THE DECISION IS NOT APPLICABLE TO THE FACTS OF THIS CASE. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT (A) HAS ERRED IN LAW AND ON THE FACTS IN DELETING THE D ISALLOWANCE OF RS. 5,20,11,322/- U/S 14A R.W.R. 8D BY IGNORING THE PRO VISIONS OF SUB- RULE 8D OF THE INCOME TAX RULES. 3. THE APPELLANT CRAVES TO BE ALLOWED TO ADD ANY FRESH GROUNDS OF APPEAL AND/OR DELETE OR AMEND ANY OF THE GROUNDS OF APPEAL. 2. BRIEFLY STATED FACTS ARE THAT THE ASSESSEE COMPA NY DERIVES ITS INCOME BY MAKING INVESTMENT IN SHARES AND SECURITIE S. FOR THE AY 2012-13 THEY HAVE FILED THEIR RETURN OF INCOME O N 25.09.2012 DECLARING A TOTAL INCOME OF RS. 257,92,65,580/- AND DURING SCRUTINY U/S 143(3) OF THE INCOME TAX ACT, 1961 (FO R SHORT CALLED AS THE ACT) AO FOUND THAT THE ASSESSEE MADE HUGE INVESTMENTS DURING THE YEAR BUT HAS NOT RECEIVED ANY DIVIDEND I NCOME OUT OF THE SAME. HOWEVER, BY FOLLOWING THE DECISION OF TH E ITAT DELHI IN THE CASE OF CHEMINVEST LTD. VS. ITO (2009) 317 ITR (AT) 0086 RULE 8D OF THE RULES AO QUANTIFIED THE DISALLOWANCE ON T HAT SCORE AT RS. 5,20,11,322/-. IN APPEAL LD. CIT (A) PLACED RE LIANCE ON THE DECISIONS REPORTED IN CIT VS. HOLCIM INDIA (P) LTD. (2014) 90 CCH 0081 (DEL.) (HC) AND REACHED A CONCLUSION THAT WHEN NO DIVIDEND WAS RECEIVED BY THE ASSESSEE DURING THE YEAR NO DIS ALLOWANCE BY 3 ITA NO. 558/DEL/2016 INVOKING PROVISIONS U/S 14A READ WITH RULE 8D OF TH E RULES IS PERMISSIBLE. INASMUCH AS THE LD. CIT (A) PLACED RE LIANCE ON THE BINDING PRECEDENT SET BY THE HONBLE JURISDICTIONAL HIGH COURT IN HOLCIM INDIA, HIS FINDINGS CANNOT BE SAID AS ILLEGA L OR IRREGULAR. WE, THEREFORE, UPHOLD THE SAME AND DISMISSED THE GR OUNDS OF APPEAL. 3. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 14.11.2017 SD/- SD/- (G.D. AGRAWAL) (K. NARSIMHA C HARY) PRESIDENT JUDICIAL ME MBER DATED: 14.11.2017 *KAVITA ARORA COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT TRUE COPY ASSISTANT REGISTRAR ITAT NEW DELHI 4 ITA NO. 558/DEL/2016