M/s NCG Enterprises Ltd., Ludhiana V. ACIT, C-7 , Ludhiana

ITA 613/CHANDI/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 6075 (ITAT-CHANDIGARH)
• Duration Of Justice: 8 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-01-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 13-09-2018
• Assessment Year: 2014-2015
• Appeal Filed On: 04-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Assessee Lawyers: ASHWANI KUMARCA
• Keywords: Earning of tax free income
• Section: 14A

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH B CHANDIGARH , ! '# $ % & '# , () BEFORE: SH. SANJAY GARG, JUDICIAL MEMBER & SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NO. 613/CHD/2018 ASSESSMENT YEAR : 2014-15 M/S N.C.G. ENTERPRISES LTD., 85, INDUSTRIAL AREA-A, LUDHIANA. THE ACIT, CIRCLE-7, LUDHIANA. PAN NO: AACCN6754H APPELLANT RESPONDENT ! ASSESSEE BY : SHRI ASHWANI KUMAR,C.A. ' ! REVENUE BY : SHRI MANJIT SINGH, SR.DR # $ % DATE OF HEARING : 11.01.2019 &'() % DATE OF PRONOUNCEMENT : 11.01.2019 (*/ ORDER PER SANJAY GARG, JUDICIAL MEMBER : THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESSEE AGAINST THE ORDER DATED 16.03.2018 OF THE COMMISSIONER OF INCOME TAX (APPEALS)-3, [HEREINAFTE R REFERRED TO AS CIT(A)],LUDHIANA. 2. THE SOLE ISSUE RAISED IN THIS APPEAL IS RELATING TO DISALLOWANCE OF EXPENDITURE INCURRED FOR EARNING OF TAX EXEMPT INCOME UNDER THE PROVISIONS OF SECTION 14A O F THE INCOME TAX ACT,1961. AT THE OUTSET, LD. COUNSEL FO R THE ASSESSEE HAS SUBMITTED THAT THE ASSESSEE DURING THE YEAR DID NOT EARN ANY TAX EXEMPT INCOME. HE, THEREFORE, HAS SUBMITTED THAT THE ISSUE IS SQUARELY COVERED BY THE VARIOUS DECISIONS OF THE HIGHER COURTS INCLUDING TH E JURISDICTIONAL HON'BLE PUNJAB & HARYANA HIGH COURT IN THE ITA-613/CHD/2018 PAGE 2 OF 2 CASE OF CIT FARIDABAD V. LAKHANI MARKETING INC 226 TAXMANN 45 (P&H) AND ALSO BY THE DECISION OF HON'BL E DELHI HIGH COURT IN CASE OF CHEMINVEST LTD. VS. CIT (2015) 378 ITR 33 (DEL) AND FURTHER OF THE HON'BLE ALLAHABAD HIGH COURT IN THE CASE OF CIT VS. M/S SHI VAM MOTORS (P) LTD. (2014) 272 CTR 277 (ALL). IN VIEW OF THIS, THE ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSE SSEE. HENCE, RESPECTFULLY FOLLOWING THE PROPOSITION OF LA W LAID DOWN BY VARIOUS HIGH COURTS, DISALLOWANCE, IF ANY, MADE BY THE LOWER AUTHORITIES IN THIS CASE UNDER THE PRO VISIONS OF SECTION 14A OF THE ACT IS ORDERED TO BE DELETED. 3. IN THE RESULT, APPEAL OF THE ASSESSEE STANDS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON 11.01.2019. SD/- SD/- ( $ % & '# ) ( ) (ANNAPURNA GUPTA) (SANJAY GARG) () / ACCOUNTANT MEMBER / JUDICIAL MEMBER POONAM '+ ,- .- / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. # / / CIT 4. # / ( )/ THE CIT(A) 5. -01 2 , % 2 , 34516 / DR, ITAT, CHANDIGARH 6. 15 7$ / GUARD FILE '+ # / BY ORDER, 8 ' / ASSISTANT REGISTRAR