DCIT, New Delhi V. M/s. Delhi Gymkhana Club Ltd., New Delhi

ITA 658/DEL/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 65449 (ITAT-DELHI)
• Duration Of Justice: 7 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-09-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 04-09-2012
• Assessment Year: 2008-2009
• Appeal Filed On: 07-02-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P K SAHU
• Keywords: Earning of tax free income
• Section: 143(3); 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: B NEW DELHI BEFORE SHRI S.V.MEHROTRA, ACCOUNTANT MEMBER AND SHRI KULBHARAT, JUDICIAL MEMBER I.T.A .NO.- 658/DEL/2012 (ASSESSMENT YEAR-2008-09) ACIT VS. DELHI GYMKHANA CLUB LTD., CIRCLE 10(1), 2, SAFDARJUNG ROAD, NEW DELHI. NEW DELHI PAN-AAACD0896L (A PPELLANT) (RESPONDENT ) APPELLANT BY: SH. P.K.SAHU, ADV. RESPONDENT BY: MS. MEETA SINHA, SR. DR APPEAL HEARD ON-04.09.2012 ORDER PRONOUNCED ON-14.09.2012 ORDER PER KULBHARAT, JM THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 11.11.2010 OF LD. CIT(A)-XVII, NEW DELHI. 2. THE REVENUE HAS RAISED FOLLOWING GROUNDS OF THE APPEAL:- 1. WHETHER THE LD. CIT(A) UNDER THE FACTS AND CIRC UMSTANCES OF THE CASE AND IN LAW WAS JUSTIFIED IN DELETING TH E ADDITION OF RS. 16,72,753/- U/S 14A OF THE INCOME TAX ACT, 1961 MAD E BY THE A.O. 2. THE APPELLANT CRAVES LEAVE, TO ADD, ALTER OR AME ND ANY GROUND OF APPEAL RAISED ABOVE AT THE TIME OF THE HE ARING. I.T.A .NO.- 658/DEL/2012 2 3. FACTS IN BRIEF ARE THAT IN THIS CASE THE ASSESSM ENT U/S 143(3) OF THE INCOME TAX ACT, 1961 (HEREIN AFTER REFER TO AS THE ACT) WAS FRAMED VIDE ORDER DATED 15.12.2010. WHILE FRAMING THE ASSESSME NT, THE ASSESSING OFFICER MADE ONE OF THE DISALLOWANCE AMOUNTING TO R S.16,72,753/- U/S 14A OF THE ACT. THE ASSESSEE FEELING AGGRIEVED BY THE ORDER OF ASSESSING OFFICER PREFERRED AN APPEAL BEFORE THE LD. CIT(A) WHO AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE, ALLOWED THE APPEAL. 4. THE ONLY ISSUE TO BE DECIDED IS WHETHER LD. CIT( A) IS JUSTIFIED IN DELETING THE ADDITION OF RS. 16,72,753/- MADE BY IN VOKING PROVISIONS OF SECTION 14A OF THE ACT. LD. SENIOR DR MS. MEETA SIN HA STRONGLY ARGUED THAT THE ASSESSING OFFICER WAS JUSTIFIED IN MAKING DISAL LOWANCE BY INVOKING PROVISIONS OF SECTION 14A OF THE ACT. SHE RELIED O N THE ASSESSMENT ORDER. ON THE CONTRARY, LD. COUNSEL FOR THE ASSESSEE SUBMI TTED THAT THE ASSESSING OFFICER HAS WRONGLY INVOKED THE PROVISION OF SECTIO N 14A. HE SUBMITTED THAT PRINCIPLE OF MUTUALITY WOULD ALSO APPLY IN RES PECT OF EXEMPT INCOME. HE FURTHER SUBMITTED THAT NO DISALLOWANCE WAS MADE IN EARLIER YEARS AND ASSESSING OFFICER HIMSELF HAS SATISFIED WITH CORREC TNESS OF CLAIM IN EARLIER YEARS. HE SUBMITTED THAT THERE WAS NO BASIS TO TAK E DIFFERENT VIEW IN THIS YEAR. HE SUBMITTED THAT SECTION 14A IS NOT APPLICA BLE UNDER THE FACTS AND CIRCUMSTANCES OF THE PRESENT CASE. I.T.A .NO.- 658/DEL/2012 3 5. WE HAVE HEARD THE RIVAL SUBMISSIONS PERUSED MATE RIAL AVAILABLE ON RECORD. LD. CIT(A) HAS GIVEN A FINDING OF FACT THA T THE ASSESSING OFFICER HIMSELF WAS SATISFIED WITH THE CORRECTNESS OF CLAIM OF THE EXPENDITURE IN EARLIER ASSESSMENT YEARS 2003-04,2004-05 AND 2006-0 7 ON THE SAME SET OF FACTS OF THE CASE AND, THEREFORE, THERE IS NO LOGIC IN DISALLOWING EXPENDITURE U/S 14A IN THE CURRENT YEAR ALONE. THIS FINDING OF THE LD. CIT(A) IS NOT CONTROVERTED BY THE DEPARTMENTAL REPRESENTATIVE. T HE REVENUE HAS ALSO NOT PLACED ANY EVIDENCE SUGGESTING THAT THE CHANGE IN T HE FACTS AND CIRCUMSTANCES OF THE CASE IN THE YEAR UNDER CONSIDE RATION AND THE ASSESSING OFFICER HAS NOT GIVEN ANY FINDING AS TO HOW HE HAS TAKEN A DIFFERENT VIEW THAN THE EARLIER YEARS. IN THIS VIEW OF THE MATTER , WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF LD. CIT(A). HENCE THIS G ROUND OF THE APPEAL OF REVENUE IS REJECTED. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 14.09.2012. SD/- SD/- (S.V.MEHROTRA) (KULBHARAT) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 14/09/2012 *AMIT KUMAR* I.T.A .NO.- 658/DEL/2012 4 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI