JCIT, Special Range-1, New Delhi V. ADM Agro Inds. India P.Ltd, New Delhi

ITA 5737/DEL/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 4772 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 1 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-11-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 07-09-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY GOYAL; SANJOG KAPOOR
• Keywords: Earning of tax free income; Rule 8D
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A, NEW DELHI BEFORE MS. SUSHMA CHOWLA, JUDICIAL MEMBER DR. B. R. R. KUMAR, ACCOUNTANT MEMBER ITA NO. 5737/DEL./2017 : ASSTT. YEAR : 2012-13 JCIT, SPECIAL RANGE-1, NEW DELHI-110002 VS ADM AGRO INDS. INDIA PVT. LTD., 807, NEW DELHI HOUSE, BARAKHAMBA ROAD, CONNAUGHT PLACE, NEW DELHI-110001 (APPELLANT) (RESPONDENT) PAN NO. A A HCA6963E ASSESSEE BY : SH. SALIL KAPOOR, ADV. REVENUE BY : SH. SANJAY GOYAL, CIT DR & SH. SANJOG KAPOOR, SR. DR DATE OF HEAR ING: 01 . 10 .201 9 DATE OF PRONOUNCEMENT: 05.11.2019 ORDER PER DR. B. R. R. KUMAR, ACCOUNTANT MEMBER: THE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE A GAINST THE ORDER OF THE LD. CIT(A)-32, NEW DELHI DATED 27. 06.2017. 2. FOLLOWING GROUND HAS BEEN RAISED BY THE REVENUE: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, THE LD. CIT(A) HAS ERRED IN DELETING THE DISALLOWAN CE OF RS.1,09,754/- MADE BY THE AO ON ACCOUNT OF EMPLOYEES CONTRIBUTION TO PF DEPOSITED BEYOND THE UDE DATE U/S 2(24)(X) R.W. SECTION 36(1)(VA) OF THE INCOME TAX ACT, 1961. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS ES, THE LD. CIT (A) HAS ERRED IN DELETING THE DISALLOWA NCE ITA NO. 5737/DEL/2017 ADM AGRO INDS. INDIA PVT. LTD. 2 OF RS.1,76,88,619/- MADE BY THE AO U/S 14A OF THE INCOME-TAX ACT, 1961 R.W.R 8D OF INCOME-TAX RULES. 3. HEARD THE ARGUMENTS OF BOTH THE PARTIES AND PERU SED THE MATERIAL AVAILABLE ON RECORD. 4. FROM THE RECORDS, IT IS FOUND THAT THE EMPLOYEE CONT RIBUTION TO PF HAS BEEN DEPOSITED BEFORE FILING OF THE RETURN. THE A SSESSING OFFICER MADE DISALLOWANCE OF RS. 109574/- BEING THE EMPLOYEES CONTRIB UTION TOWARDS THE PF DEPOSITED AFTER THE DUE DATE U/S 2(24)(X) REA D WITH SECTION 36(1)(VA) OF THE I.T. ACT, 1961. IT WAS ARGUED BY TH E LD. AR THAT THE AMOUNTS HAVE ALREADY BEEN DEPOSITED BEFORE FILING O F THE INCOME TAX RETURN ON 9.11.2011 AND 05.04.2012. SINCE, THE AMOU NTS HAVE ALREADY BEEN PAID BEFORE FILING OF THE RETURN AS PROVIDED U NDER SECTION 36(1)(VA) THE INCOME TAX ACT AND KEEPING IN VIEW THE JUDGMENT OF HONBLE HIGH COURT IN THE CASE OF CIT VS AIMLI LTD. 321 ITR 508, W HEREIN THE HONBLE HIGH COURT ALLOWED THE DEDUCTION OF PAYMENT OF EMPLOY EES CONTRIBUTION TOWARDS THE PF BEFORE FILING OF THE RETURN, THE APPE AL OF THE REVENUE IS HEREBY DISMISSED. 5. GROUND NO. 2 DEALS WITH DISALLOWANCE OF RS. 176,88,6 19/- MADE BY THE ASSESSING OFFICER U/S 14 OF THE INCOME TAX ACT READ WI TH RULE 8D OF THE INCOME TAX RULES. THE AVERAGE VALUE O THE INVESTM ENTS DETERMINED BY THE ASSESSING OFFICER WAS RS. 81,40,52,960/- AND AVERAG E VALUE OF THE ASSETS RS. 4,21,36,40,419/-. IT WAS ARGUED BY THE LD. A R THAT NO EXEMPT INCOME HAS BEEN EARNED BY THE ASSESSEE DURING THE YEAR. T HE REVENUE HAS NOT DISPUTED THE FACTUAL POSITION. HENCE, KEEPING IN V IEW THE JUDGMENT OF HONBLE DELHI HIGH COURT IN THE CASE CHEMINVEST LTD. VS CIT IN ITA NO. 749/2014 DATED 02.09.2015, WE HEREBY DECLINE TO INTE RFERE WITH THE ORDER OF THE LD. CIT (A) IN DELETING THE ADDITION MADE U/ S 14A. ITA NO. 5737/DEL/2017 ADM AGRO INDS. INDIA PVT. LTD. 3 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON 05/11/2019 SD/- SD/- (SUSHMA CHOWLA) (DR. B. R. R. KUMAR) JUDICIAL MEMBER ACCOU NTANT MEMBER DATED: 05/11/2019 *SUBODH* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR