M/s. Competent Holdings Pvt. Ltd., New Delhi V. ITO, New Delhi

ITA 6185/DEL/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 4081 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 1 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-01-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 02-12-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ASHIMA NEB
• Keywords: Earning of tax free income
• Section: 14A

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH B, NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER I.T.A. NO. 6185 /DEL/201 6 A.Y. 20 1 3 - 1 4 M/S COMPETENT HOLDINGS PRIVATE LIMITED, A-44, KAILASH COLONY, NEW DELHI 110 048 (PAN: AAACC05168J) VS. ITO, WARD 6(2), NEW DELHI (APPELLANT) (RESPONDENT) DEPARTMENT BY : MS. ASHIMA NEB, SR. DR ASSESSEE BY : SH. V. RAJA KUMAR, ADV. ORDER PER H.S. SIDHU : JM THE ASSESSEE HAS FILED THIS APPEAL AGAINST THE IMP UGNED ORDER DATED 21.9.2016 RELEVANT TO ASSESSMENT YEAR 2013-1 4. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUND O F APPEAL:- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) ERRED IN CONFIRMING THE ACTION OF THE AO IN INVOKING THE PROVISION OF SECTION 14A OF THE INCOME TAX ACT, 1961 AND MAKING A DISALLOWANCE IN A SUM OF RS. 6,52,931/- . THE ACTION BEING ARBITRARY, ERRONEOUS, UNLAWFUL AND UNJUST MUST BE QUASHED WITH DIRECTION FOR RELIEF. 3. AFTER PERUSING THE AFORESAID GROUND OF APPEAL RA ISED BY THE ASSESSEE, ASSESSMENT ORDER AS WELL AS THE IMPUGNED ORDER PASSED BY THE LD. CIT(A), WE FIND THAT AO HAS MADE THE ADDITION O F RS. 6,52,931/- U/S. 14A READ WITH RULE 8D OF THE I.T. RULES VIDE ASSES SMENT ORDER DATED 05.2.2016 AND IN APPEAL LD. CIT(A) VIDE HIS ORDER DATED 21.9.2016 HAS 2 RESTRICTED THE DISALLOWANCE TO THE EXTENT OF EXEMPT INCOME ONLY I.E. RS. 3,55,424/-. HOWEVER, AGAINST THE IMPUGNED OR DER, THE ASSESSEE HAS CHALLENGED THE ADDITION OF RS. 6,52,931/- INSTEAD O F RS. 3,55,424/- BEFORE THE TRIBUNAL, WHICH IS CONTRARY TO LAW AND NOT PER MISSIBLE IN THE EYES OF LAW. THEREFORE, THE APPEAL FILED BY THE ASSESSEE IS DEFECTIVE, HENCE, THE SAME IS DISMISSED AS SUCH. BUT IN THE INTEREST OF J USTICE, IF SO ADVISED, THE ASSESSEE IS AT LIBERTY TO FILE THE APPLICATION TO R ECALL THIS ORDER, AFTER RECTIFYING THE DEFECT. 4. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE STANDS DISMISSED IN THE AFORESAID MANNER. ORDER PRONOUNCED IN THE OPEN COURT ON 22/01/2018. SD/- SD/- [PRASHANT MAHARISHI] [H.S. SIDHU] ACCOUNTANT MEMBER JUDICIAL MEMBER DATE 22/01/2018 SRBHATNAGAR COPY FORWARDED TO: - 1. APPELLANT - 2. RESPONDENT - 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR, ITAT, DELHI BENCHES