Remarkable Consumer Electronics Private Limited, New Delhi V. Pr.CIT-7, New Delhi

ITA 668/DEL/2021

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 6214 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 2 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-08-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2017-2018
• Appeal Filed On: 08-06-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Earning of tax free income; Rule 8D
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘H’, NEW DELHI BEFORE SH. N. K. BILLAIYA, ACCOUNTANT MEMBER AND SH. ANUBHAV SHARMA, JUDICIAL MEMBER ITA No.668/Del/2021 Assessment Year: 2017 -18 Remarkable Consumer Electronics Private Limited Flat No.305, 3 rd Floor, Bakshi House, 40-41, Nehru Place, New Delhi-110019 PAN No.AADCR5473N Vs Pr. CIT -7 New Delhi (APPELLANT) (RESPONDENT) Appellant Sh. Pancham Sethi, CA Respondent Sh. M. Baranwal, CIT (DR) Date of hearing: 17/08/2022 Date of Pronouncement: 17/08/2022 ORDER PER N.K. BILLAIYA, AM: This appeal by the assessee is preferred against the order dated 15.04.2021 framed by National Faceless Appeal Centre NFAC), Delhi. 2 2. The solitary grievance of the assessee is that the CIT(A) / NFAC erred in confirming the disallowance of Rs.59,392/-made by the AO u/s. 14A of the Act. 3. Briefly stated the facts of the case are that during the course of the scrutiny assessment proceedings the AO noticed that the assessee has shown total investments of Rs. 64.74 crores in its balance sheet. The AO further found that the assessee has claimed expenses to the extent of Rs.59,392/-. 4. Invoking the provisions of section 14A r.w. rule 8D the AO asked the assessee to show cause why disallowance u/s. 14A should not be made. On receiving no plausible reply the AO computed the disallowance and made addition of Rs.59,392/-. 5. This issue is no more resintera and has been decided by the Hon’ble High Court of Delhi in the case of Era Infrastructure India Limited in ITA No. 204/2022 vide order dated 20.07.2022 wherein Hon’ble High court had considered the decision of Hon’ble High Court in the case of IF & FS Energy Development Company Limited 2017 SCC Online Del 9893 wherein it has been held that no disallowance u/s. 14A of the Act can be made if the assessee had not earned any exempt income. 6. Considering the amendment brought in the statue by the Finance Act, 2022 the Hon’ble High Court held as under :- 3 7. In the light of the above the AO is directed to delete the impugned addition. The appeal of the assessee is allowed. 8. Decision announced in the open court on 17.08.2022. Sd/- Sd/- (ANUBHAV SHARMA) (N. K. BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER *NEHA, Sr. Private Secretary* Date:- .08.2022 4 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI Date of dictation 17.08.2022 Date on which the typed draft is placed before the dictating Member 17.08.2022 Date on which the typed draft is placed before the Other member 17.08.2022 Date on which the approved draft comes to the Sr.PS/PS 17.08.2022 Date on which the fair order is placed before the Dictating Member for Pronouncement 17.08.2022 Date on which the fair order comes back to the Sr. PS/ PS 17.08.2022 Date on which the final order is uploaded on the website of ITAT 17.08.2022 Date on which the file goes to the Bench Clerk 17.08.2022 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