Rovo Marketing Pvt. Ltd., New Delhi V. ITO, New Delhi

ITA 6038/DEL/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 3158 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 1 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-12-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: F
• Assessment Year: 2011-2012
• Appeal Filed On: 07-11-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: S P SINGH
• Keywords: Earning of tax free income
• Section: 14A

Judgement Text

1 ITA NO. 6038/DEL/2014 IN THE INCOME TAX APPELLA TE TRIBUNAL DELHI BENCH: F NEW DELHI BEFORE SHRI G. D. AGRAWAL, PRESIDE NT AND SHRI CHANDRA MOHAN GARG, JU DICIAL MEMBER I.T.A .NO. 6038/DEL/2 014 (A.Y 2011-12) ROVO MARKETING PVT. LTD. 1307, CHIRNJIV TOWER, 43, NEHRU PLACE NEW DELHI AAACR1019D (APPELLANT) VS ITO WARD-15(4) NEW DELHI (RESPONDENT) APPELLANT BY SH. S. P. SINGH, CA RESPONDENT BY SH. ATIQ AHMAD, SR. DR ORDER PER CHANDRA MOHAN GARG, JUDICIAL MEMBER THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD.CIT(A)-XVIII, NEW DELHI DATED 22/8/2014 FOR ASSE SSMENT YEAR 2011- 12. 2. IN THIS APPEAL, THE ASSESSEE HAS RAISED A SINGLE ISSUE WHEREIN THE ASSESSEE IS CHALLENGING THE CONFIRMATION OF ADDITIO N BY THE LD.CIT(A) OF RS.12,79,844/- MADE BY THE A.O U/S 14A OF THE INCOM E TAX ACT, 1961 DATE OF HEARING 11.12.2017 DATE OF PRONOUNCEMENT 12.12.2017 2 ITA NO. 6038/DEL/2014 (FOR SHORT THE ACT) READ WITH RULES 8D OF THE INCOM E TAX RULES, 1962 (FOR SHORT THE RULES). 3. THE LD. AR SUBMITTED THAT IN VIEW OF THE DECISIO N OF HON'BLE HIGH COURT OF DELHI IN THE CASE OF JOINT INVESTMENT VS. CIT 372 ITR 694 (DELHI) DISALLOWANCE CANNOT BE MADE MORE THAN EXEMP T INCOME EARNED AND CLAIMED AS EXEMPT BY THE ASSESSEE WHICH WAS ONL Y 1,51,698/- IN THE PRESENT CASE. HENCE, THE DISALLOWANCE MAY KINDLY BE RESTRICTED TO THE SAID AMOUNT. 4. THE LD. DEPARTMENTAL REPRESENTATIVE STRONGLY SUP PORTED THE ACTION OF THE A.O AS WELL AS THE FIRST APPELLATE ORDER AND SUBMITTED THAT THE AUTHORITIES BELOW WERE CORRECT AND JUSTIFIED IN MAK ING ADDITION. HOWEVER, ON BEING ASKED BY THE BENCH, THE LD. DEPAR TMENTAL REPRESENTATIVE FAIRLY SUBMITTED AS PER RATIO OF THE DECISION OF HONBLE JURISDICTIONAL HIGH COURT OF DELHI IN THE CASE OF J OINT INVESTMENT (SUPRA) THE ADDITION MORE THAN EXEMPT INCOME CANNOT BE MAD E. 5. ON CAREFUL CONSIDERATION AND RIVAL SUBMISSIONS I N THE PRESENT CASE ADMITTEDLY AND UNDISPUTEDLY THE ASSESSEE HAS EARNED EXEMPT INCOME OF RS.1,51,698/-. HENCE, AS PER RATIO OF THE DECISION OF JURISDICTIONAL HIGH 3 ITA NO. 6038/DEL/2014 COURT OF DELHI IN THE CASE OF JOINT INVESTMENT (SUP RA), NO DISALLOWANCE U/S 14A OF THE ACT READ WITH RULE 8D OF THE RULES C AN BE MADE MORE THAN THE EXEMPTION AMOUNT HENCE, RESPECTFULLY FOLL OWING THE DECISION OF HONBLE JURISDICTIONAL HIGH COURT, WE DIRECT THE A. O TO RESTRICT DISALLOWANCE TO RS.1,51,698/- AND TO DELETE THE REM AINING PART OF ADDITION. ACCORDINGLY, THE SOLE GROUND OF THE AS SESSEE IS PARTLY ALLOWED IN THE MANNER AS INDICATED ABOVE. 7. IN THE RESULT, THE APPEAL IS PARTLY ALLOWED. DECISION PRONOUNCED IN THE OPEN COURT ON 12.12.20 17 SD/- SD/- (G. D. AGRAWAL) (C. M GARG) PRESIDENT JUDICIAL MEMBER DATED: 12/12/2017 R. NAHEED * COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI 4 ITA NO. 6038/DEL/2014 DATE 1. DRAFT DICTATED ON 12.10.2017 PS 2. DRAFT PLACED BEFORE AUTHOR 13.10.2017 PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER .2017 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 18.12.2017 PS/PS 6. KEPT FOR PRONOUNCEMENT ON PS 7. FILE SENT TO THE BENCH CLERK 18.12.2017 PS 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER. 5 ITA NO. 6038/DEL/2014