Competent Holdings Pvt. Ltd., New Delhi V. ACIT, Circle-6(1), New Delhi

ITA 647/DEL/2019

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 8838 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-02-2022
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 29-01-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Earning of tax free income
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘B’, NEW DELHI BEFORE SH. N. K. BILLAIYA, ACCOUNTANT MEMBER AND SH. YOGESH KUMAR US, JUDICIAL MEMBER (THROUGH VIDEO CONFERENCING) ITA No.647/Del/2019 Assessment Year: 2014-15 Competent Holdings Pvt. Ltd. A-44, Kailash Colony, New Delhi PAN No. AAACC0518J Vs ACIT Circle – 6 (1) New Delhi (APPELLANT) (RESPONDENT) Appellant by Sh. S. Krishnan, Advocate Respondent by Sh. Kumar Parnav, Sr. DR Date of hearing: 15/02/2022 Date of Pronouncement: 15/02/2022 ORDER PER N. K. BILLAIYA, AM: This appeal by the assessee is preferred against the order of the CIT(A)-33, New Delhi dated 13.09.2018 pertaining to A.Y.2014-15. 2. The solitary grievance of the assessee is that the CIT(A) erred in confirming the disallowance of Rs.577221/- made u/s. 14A of the Act. 2 3. Briefly stated the facts of the case are that the assessee earned dividend income of Rs.9,97,226/- which was claimed as exempt u/s.10 (34) of the Act. 4. During the course of the scrutiny assessment proceedings the assessee was asked to explain why the disallowance u/s.14A should not be made. 5. In its reply the assessee stated that the dividend income has been earned from the shares held as stock in trade duly reflected in its financial statements. The reply of the assessee did not find any favour with the AO who proceed by computing the disallowance u/s.14A r.w.r 8D and made addition of Rs.577221/-. 6. The assessee agitated the matter before the CIT(A) but without any success. 7. Before us the counsel for the assessee drew our attention to the decision of the Tribunal in assessee’s own case for A.Y.2013- 14 and pointed out that on identical set of facts the Tribunal has deleted the disallowance. 8. The DR placed strong reliance on the orders of the authorities below but could not bring any distinguish decision in favour of the revenue. 9. We have carefully considered the orders of the authorities below and find that on identical disallowance was considered by this Tribunal (supra). The relevant findings of the coordinate Bench read as under :- 3 4 10. Respectfully, following the findings of the coordinate Bench we direct the AO to restrict the disallowance to Rs.997226/- being 10% of the exempt income. 11. In the result, the appeal filed by the assessee is partly allowed. 12. The order is pronounced in the open court on 15.02.2022 in the presence of both the rival representatives. Sd/- Sd/- (YOGESH KUMAR US) (N. K. BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER *NEHA* Date:- .02.2022 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI Date of dictation 15.02.2022 Date on which the typed draft is placed before the dictating Member Date on which the typed draft is placed before the Other member Date on which the approved draft comes to the Sr.PS/PS Date on which the fair order is placed before the Dictating Member for Pronouncement Date on which the fair order comes back to the Sr. PS/ PS Date on which the final order is uploaded on the website of ITAT 15.02.2022 Date on which the file goes to the Bench Clerk 5 Date on which file goes to the Head Clerk. The date on which file goes to the Assistant Registrar for signature on the order Date of dispatch of the Order