M/s. Regent Automobiles Ltd., New Delhi V. Addl. CIT, New Delhi

ITA 685/DEL/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 7590 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 3 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-05-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 26-05-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 06-02-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUSAN D GEORGE SENIOR
• Keywords: Earning of tax free income
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH F FF F : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI BEFORE SHRI BEFORE SHRI BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT AND AND AND AND SHRI SUDHANSHU SRIVASTAVA SHRI SUDHANSHU SRIVASTAVA SHRI SUDHANSHU SRIVASTAVA SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER ITA NO ITA NO ITA NO ITA NO . .. . 685 685 685 685 /DEL/2014 /DEL/2014 /DEL/2014 /DEL/2014 ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : 20 2020 20 10 1010 10 - -- - 11 1111 11 M/S REGENT AUTOMOBILES M/S REGENT AUTOMOBILES M/S REGENT AUTOMOBILES M/S REGENT AUTOMOBILES PVT.LTD., PVT.LTD., PVT.LTD., PVT.LTD., B BB B- -- -1/F 1/F1/F 1/F- -- -5, MOHAN CO 5, MOHAN CO 5, MOHAN CO 5, MOHAN COOP IND. OP IND. OP IND. OP IND. AREA, AREA, AREA, AREA, MATHURA ROAD, MATHURA ROAD, MATHURA ROAD, MATHURA ROAD, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 044. 110 044. 110 044. 110 044. PAN : AACCR5352H. PAN : AACCR5352H. PAN : AACCR5352H. PAN : AACCR5352H. VS. VS. VS. VS. ADDITIONAL COMMISSIONER OF ADDITIONAL COMMISSIONER OF ADDITIONAL COMMISSIONER OF ADDITIONAL COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, RANGE RANGE RANGE RANGE- -- -15 1515 15, ,, , NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : NONE. RESPONDENT BY : MS. SUSAN D. GEORGE, SENIOR DR. DATE OF HEARING : 26 2626 26.05.2016 .05.2016 .05.2016 .05.2016 DATE OF PRONOUNCEMENT : 26.05.2016 26.05.2016 26.05.2016 26.05.2016 ORDER ORDER ORDER ORDER PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP : :: :- -- - THIS APPEAL BY THE ASSESSEE FOR THE ASSESSMENT YEA R 2010-11 IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-XVIII, NEW DELHI DATED 1 ST NOVEMBER, 2013. 2. AT THE TIME OF HEARING BEFORE US, NOBODY APPEARE D ON BEHALF OF THE ASSESSEE-APPELLANT. THIS APPEAL OF THE ASSESSE E IS, THEREFORE, BEING DECIDED EX-PARTE QUA THE ASSESSEE-APPELLANT O N MERITS AFTER HEARING THE ARGUMENTS OF LEARNED SENIOR DR. 3. THE ONLY GROUND RAISED BY THE ASSESSEE IN THIS A PPEAL READS AS UNDER:- THAT THE DISALLOWANCE OF RS.41,40,240/- U/S 14A OF THE INCOME TAX ACT, 1961 READ WITH RULE 8D OF THE INCOM E-TAX RULES, 1962 AS MADE BY THE ASSESSING OFFICER AND SUSTAINED BY THE CIT(APPEALS) IS ARBITRARY, UNJUST AND AT ANY RATE VERY EXCESSIVE. ITA-685/DEL/2014 2 4. WE HAVE HEARD THE ARGUMENTS OF LEARNED DR AND PE RUSED THE MATERIAL PLACED BEFORE US. FROM A PERUSAL OF THE A SSESSMENT ORDER, IT IS CLEAR THAT NO DIVIDEND INCOME WAS EARNED BY THE ASSESSEE DURING THE PREVIOUS YEAR. WE FIND THIS ISSUE TO BE COVERE D IN FAVOUR OF THE ASSESSEE BY THE DECISION OF HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF CHEMINVEST LIMITED VS. CIT-VI IN ITA NO.749 /2014, ORDER DATED 2 ND SEPTEMBER, 2015 AND CIT-IV VS. HOLCIM INDIA P.LTD. IN ITA NO.486/2014 & 299/2014, ORDER DATED 5 TH SEPTEMBER, 2014, WHEREIN HON'BLE JURISDICTIONAL HIGH COURT HAS HELD THAT IF THERE IS NO EXEMPT INCOME, THEN NO DISALLOWANCE U/S 14A OF THE ACT CAN BE MADE. ADMITTEDLY, IN THE CASE OF THE ASSESSEE, THERE IS N O EXEMPT INCOME. THEREFORE, RESPECTFULLY FOLLOWING THE ABOVE DECISIO NS OF HON'BLE JURISDICTIONAL HIGH COURT, WE DELETE THE DISALLOWAN CE OF `41,40,240/- MADE BY THE ASSESSING OFFICER AND SUSTAINED BY LEAR NED CIT(A) U/S 14A OF THE ACT. THE GROUND RAISED BY THE ASSESSEE IS T HUS ALLOWED. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. DECISION PRONOUNCED IN THE OPEN COURT ON 26.05.2016 . SD/- SD/- (SUDHANSHU SRIVASTAVA (SUDHANSHU SRIVASTAVA (SUDHANSHU SRIVASTAVA (SUDHANSHU SRIVASTAVA ) )) ) ( (( ( G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL ) )) ) JUDICIAL JUDICIAL JUDICIAL JUDICIAL MEMBER MEMBER MEMBER MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VK. COPY FORWARDED TO: - 1. APPELLANT : M/S REGENT AUTOMOBILES PVT.LTD., M/S REGENT AUTOMOBILES PVT.LTD., M/S REGENT AUTOMOBILES PVT.LTD., M/S REGENT AUTOMOBILES PVT.LTD., B BB B- -- -1/F 1/F1/F 1/F- -- -5, MOHAN COOP IND. AREA, 5, MOHAN COOP IND. AREA, 5, MOHAN COOP IND. AREA, 5, MOHAN COOP IND. AREA, MATHURA ROAD, NEW DELHI MATHURA ROAD, NEW DELHI MATHURA ROAD, NEW DELHI MATHURA ROAD, NEW DELHI 110 044. 110 044. 110 044. 110 044. 2. RESPONDENT : ADDITIONAL COMMISSIONER OF INCOME T AX, ADDITIONAL COMMISSIONER OF INCOME TAX, ADDITIONAL COMMISSIONER OF INCOME TAX, ADDITIONAL COMMISSIONER OF INCOME TAX, RANGE RANGE RANGE RANGE- -- -15 1515 15, , , , NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR