DCIT , Circle -25(1), New Delhi V. Techno Trexim (India) Pvt. Ltd., New Delhi

ITA 5889/DEL/2019

• Counselvise Citation: [2022] 107 COUNSELVISE.COM (IT) 0164 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-09-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2015-2016
• Appeal Filed On: 04-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Rule 8D
• Section: 14A

Judgement Text

I.T.A.No.5889/Del/2019 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “H” NEW DELHI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER AND SHRI [Dr.] B.R.R. KUMAR, ACCOUNTANT MEMBER आ.अ.सं/.I.T.A No. 5889/Del/2019 िनधाᭅरणवषᭅ/Assessment Year: 2015-16 DCIT, Circle : 25 (1), New Delhi. बनाम Vs. M/s. Techno Trexim (India) Pvt. Ltd., 806, Devika Tower, 6, Nehru Place, New Delhi – 110 019. PAN No. AAACT4360K अपीलाथᱮ/ Appellant ᮧ᭜यथᱮ/ Respondent िनधाᭅᳯरतीकᳱओरसे / Assessee by : Shri Inder Paul Bansal, Adv.; & Shri Vivek Bansal, Advvocate. राज᭭वकᳱओरसे / Department by : Shri M. Baranwal, [CIT] - D. R.; सुनवाईकᳱतारीख/ Date of hearing : 05.09.2022 उ᳃ोषणाकᳱतारीख/Pronouncement on : 05.09.2022 आदेश / O R D E R PER C. N. PRASAD, J.M. 1, This appeal is filed by the Revenue against the order of the Ld. Commissioner of Income Tax (Appeals)-9, New Delhi [hereinafter I.T.A.No.5889/Del/2019 2 referred to CIT (Appeals)] dated 11.04.2019 in deleting the disallowance under section 14A read with Rule 8D of the Act for the Assessment Year 2015-16. 2. At the outset, the ld. Counsel for the assessee submits that during the assessment year the assessee did not receive any exempt income and the ld. CIT (Appeals) deleted the disallowance. Following the decision of the Hon’ble Delhi High Court in the case of Cheminvest Limited Vs. CIT (378 ITR 33). The ld. Counsel further submits that in a recent decision, the jurisdictional High Court in the case of PCIT Vs. Eros Infrastructure (India) Ltd. In ITA. 204/Del/2022 dated 20.07.2022 held that the Amendment brought in by the Finance Act, 2022 to the provisions of section 14A of the Act clarifying even if there is no exempt income the provisions of section 14A read with Rule 8D have application was held to be applicable only prospectively. 3. The ld. DR supported the order of the Assessing Officer. 4. Heard rival submissions perused the orders of the authorities below. We observe that the ld. CIT (Appeals) deleted the disallowance made under section 14A of the Act for the reason that the assessee did not receive any exempt income during the assessment year under consideration. The ld. CIT (Appeals) followed the decision of the Hon’ble Delhi High Court in the case of Cheminvest Limited Vs. CIT (supra). We further observe that recently the Hon’ble Delhi High Court in the case of PCIT Vs. Eros Infrastructure (India) Ltd. (supra) and the Hon’ble Delhi High Court following the decision of apex court in the case of Sedco Forex International Drill. Inc Vs. CIT (2005) 12 SCC 717 and the decision of the Hon’ble Supreme Court in the case of M.M. Aqua Technologies Ltd. Vs. CIT in Civil Appeal Nos. 4742 and 4743 of 2021 (dated 11.08.2021) held that the Amendment to section 14A of the Act w/o for removal of I.T.A.No.5889/Del/2019 3 doubts cannot be presumed to be retrospective. Thus, we do not see any infirmity in the order passed by the ld. CIT (Appeals) in deleting the disallowance made under section 14A read with Rule 8D of the Act. Grounds raised by the Revenue are rejected. 5. In the result, appeal of the Revenue is dismissed. Order pronounced in the open court on : 05/09/2022 Sd/- Sd/- ( B. R. R. KUMAR ) ( C. N. PRASAD ) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated : 05/09/2022 *MEHTA* Copy forwarded to :- 1. Appellant; 2. Respondent; 3. CIT 4. CIT (Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, New Delhi. Date of dictation 05.09.2022 Date on which the typed draft is placed before the dictating member 05.09.2022 Date on which the typed draft is placed before the other member 05.09.2022 Date on which the approved draft comes to the Sr. PS/ PS 05.09.2022 Date on which the fair order is placed before the dictating member for pronouncement 05.09.2022 I.T.A.No.5889/Del/2019 4 Date on which the fair order comes back to the Sr. PS/ PS 05.09.2022 Date on which the final order is uploaded on the website of ITAT 05.09.2022 Date on which the file goes to the Bench Clerk 05.09.2022 Date on which the file goes to the Head Clerk The date on which the file goes to the Assistant Registrar for signature on the order Date of dispatch of the order