ACIT, New Delhi V. M/s K.S. Softnet Solutions Pvt. Ltd., New Delhi

ITA 6406/DEL/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 6317 (ITAT-DELHI)
• Duration Of Justice: 3 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-03-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 03-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P D KANUNJNA
• Keywords: Earning of tax free income; Tax effect
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: E NEW DELHI BEFORE SMT DIVA SINGH, JUDICIAL MEMBER AND SH.O.P.KANT, ACCOUNTANT MEMBER I.T.A .NO.-6406/DE L/2015 (ASSESSMENT YEAR-2011- 12) ACIT, CIRCLE-14(1), NEW DELHI (APPELLANT) VS K.S.SOFTNET SOLUTIONS PVT.LTD., 58A/4, SAINIK FARMS, NEW DELHI-110062. PAN-AABCK8465F (RESPONDENT) APPELLANT BY SH.P.D.KANUNJNA, SR. DR RESPONDENT BY NONE ORDER PER DIVA SINGH, JM THE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE AS SAILING THE CORRECTNESS OF THE ORDER DATED 24.09.2015 OF CIT(A) - 5, DELHI PERTAINING TO 2011 12 ASSESSMENT YEAR ON THE FOLLOWING GROUNDS: 1. THAT THE ORDER OF THE LEARNED CIT(APPEALS) IS ERRO NEOUS & CONTRARY TO FACTS & LAW. 2. THAT ON THE FACTS AND IN THE CIRUCMSTNACES OF THE C ASE AND IN LAW, THE LEARNED CIT(APPEALS) HAS ERRED IN DELETING THE DISALLOWANCE OF RS.14,51,952/- MADE BY THE AO U/S 14A OF THE ACT, I N CONTRAVENTION TO THE CBDTS CIRCULAR NO.5 OF 2014 WHEREIN IT HAS BEEN CLARIFIED THAT RULE 8D READ WITH SECTION 14A OF THE ACT PROVIDES F OR DISALLOWANCE OF EXPENDITURE EVEN WHERE TAX PAYER IN A PARTICULAR YEAR HAS NOT EARNED ANY EXEMPT INCOME. 3. THAT THE APPELLANT CRAVES LEAVE TO ADD, ALTER OR AM END ANY GROUND(S) OF THE APPEAL RAISED ABOVE AT THE TIME OF HEARING. 2. THE LD. SR. DR, MR P.D.KANUNJNA WAS HEARD. NO ON E WAS PRESENT ON BEHALF OF THE ASSESSEE. HOWEVER, CONSIDERING THE FA CT THAT THE AMOUNT AT STAKE FOR THE REVENUE IS MUCH LESS THAN THE TAX EFFECT OF 10 LAKH WHICH POSITION WAS NOT DISPUTED BY THE LD. SR. DR IT WAS CONSIDERED A PPROPRIATE TO DISMISS THE DATE OF HEARING 10.03.2016 DATE OF PRONOUNCEMENT 22.03.2016 I.T.A .NO.-6406/DEL/2015 PAGE 2 OF 2 DEPARTMENTAL APPEAL RELYING UPON THE LATEST CIRCULA R OF THE CBDT CIRCULAR NO.21/2015 DATED 10 TH DECEMBER, 2015. 3. WE HAVE HEARD THE SUBMISSIONS OF THE PARTIES ON THIS ISSUE AND PERUSED THE MATERIAL ON RECORD. WE FIND THAT THE CBDT VIDE THE AFORESAID CIRCULAR DATED 10.12.2015 HAS REVISED THE MONETARY LIMIT TO RS.10 LAKH FOR FILING THE APPEAL BY THE DEPARTMENT BEFORE INCOME TAX APPELLAT E TRIBUNAL. PARA 3 OF THE AFORESAID CIRCULAR HAS BEEN MADE APPLICABLE VIDE PA RA 10 RETROSPECTIVELY. CONSIDERING THE SETTLED LEGAL PRECEDENT THAT THE BO ARDS INSTRUCTIONS OR DIRECTIONS ISSUED TO THE INCOME TAX AUTHORITIES U/S 268A OF THE INCOME TAX ACT, 1961 ARE BINDING ON THE AUTHORITIES, WE DISMIS S THE DEPARTMENTAL APPEAL CONSIDERING THE MATERIAL AVAILABLE ON RECORD. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 22 ND MARCH, 2016. SD/- SD/- (O.P.KANT) (DIVA SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 22/03/2016 *AMIT KUMAR* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI