M/s. Pioneer Urban Land & Infrastructure Ltd., New Delhi V. Addl. CIT, New Delhi

ITA 704/DEL/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 6983 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 4 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-07-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 25-05-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 07-02-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R S NEGI
• Assessee Lawyers: V K AGGARWAL
• Keywords: Earning of tax free income
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F, NEW DELHI BEFORE SRI G.D. AGARWAL, HONBLE V.P. AND SRI C.M. GARG, JM ITA NO. 704/DEL./2014 : A SSTT. YEAR : 2009-10 PIONEER URBAN LAND & INFRASTRUCTURE LTD. A-22, GREEN PARK, 3 RD FLOOR, AURBINDO MARG NEW DELHI VS ADDL. CIT RANGE -14 NEW DELHI (APPELLANT) (RESPONDENT) PAN NO. AACCP8576B ASSESSEE BY : SH. V.K.AGGARWAL, AR REVENUE BY : SH. R.S. NEGI , SR. DR DATE OF HEARING : 02.06.2016 DATE OF PRONOUNCEMENT : 01.07.2016 ORDER PER C.M.GARG, J.M. THIS APPEAL BY THE ASSESSEE HAS BEEN FILED AGAISNT THE ORDER OF THE CIT(A) DATED 12.11.2013 PASSED IN FIRST APPEAL NO. 363/11-12 FOR AY 2009-10. THE SOLE GROUND RAISED BY THE ASSESSEE READS AS FO LLOWS : ITA NO. 704/DEL/2014 PIONEER URBAN LAND & INFRASTRUCTURE LTD. 2 THE CIT(A) HAS ERRED IN LAW AND ON FACTS IN CONFIR MING THE DISALLOWANCE OF RS. 8,86,849/- U/S 14A R.W. RUL E 8D IGNORING THE FACTS AND SUBMISSIONS PLACED ON RECORD . THUS, THE DISALLOWANCE SO MADE SHOULD BE DELETED. 2. WE HAVE HEARD ARGUMENTS OF BOTH THE SIDES AND CAREFULLY PERUSED THE RELEVANT MATERIALS PLACED ON THE RECORD OF THE TRIBUNAL. AT THE VERY OUTSET, THE LD. AR PLACING RELIANCE ON THE DECISION OF HONBLE HIGH COURT OF DELHI IN THE CASE OF JOINT INVESTMENTS PVT . LTD. VS. CIT 372 ITR 695 (DEL) CONTENDED THAT THE DISALLOWANCE IN AN Y CASE CAN NOT BE MADE MORE THAN EXEMPT INCOME. THE LD. AR POINTED OU T THAT THE ASSESSEE EARNED DIVIDEND INCOME OF RS. 1,49,789/- W HEREAS THE AO DISALLOWED AMOUNT OF RS. 8,86,849/- WHICH IS NOT A PROPER AND JUSTIFIED APPROACH OF THE AO. 3. THE LD. DEPARTMENTAL REPRESENTATIVE (DR) STRO NGLY SUPPORTED THE ACTION OF THE AO AS WELL AS IMPUGNED ORDER OF CIT(A ). HOWEVER, WE FAIRLY ACCEPTED THAT AS PER RATIO OF THE DECISION O F HONBLE HIGH COURT IN THE CASE OF JOINT INVESTMENT PVT. LTD. VS. CIT ( SUPRA) THE DISALLOWANCE CAN NOT BE MADE BEYOND ACTUAL EXEMPT I NCOME. THE LD. DR ALSO DID NOT EXPRESS ANY SERIOUS OBJECTION TO TH E CONTENTION OF LD. AR THAT THE DISALLOWANCE MAY BE RESTRICTED TO EXEMP T INCOME. 4. ON CAREFULY CONSIDERATION ABOVE SUBMISSIONS O F BOTH THE SIDES AND KEEPING IN VIEW THE RATIO OF THE DECISION OF HO NBLE JURISDICTIONAL ITA NO. 704/DEL/2014 PIONEER URBAN LAND & INFRASTRUCTURE LTD. 3 HIGH COURT IN THE CASE OF JOINT INVESTMENT (SUPRA). WE ARE OF THE CONSIDERED OPINION THAT DISALLOWANCE CANNOT BE MADE MORE THAT EXEMPT INCOME WHICH IS RS. 1,49,789/- FOR AY 2009-1 0 THUS DISALLOWANCE IS RESTRICTED TO EXEMPT INCOME. 5. CONSEQUENTLY, SOLE GROUND OF THE ASSESSEE IS PARTLY ALLOWED AS INDICATED ABOVE. ORDER PRONOUNCED IN THE COURT ON 01/07/2016. SD/- SD/- ( G.D.AGARWAL ) (C.M.GARG) VICE PRESIDENT J UDICIAL MEMBER DATED: 01/ 07/2016 *BINITA* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) ITA NO. 704/DEL/2014 PIONEER URBAN LAND & INFRASTRUCTURE LTD. 4 DATE INITIAL 1. DRAFT DICTATED ON (HAND WRITTEN) 20 .06.2016 2. DRAFT PLACED BEFORE AUTHOR 20.06.2016 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS PS/PS 6. KEPT FOR PRONOUNCEMENT ON PS 7. FILE SENT TO THE BENCH CLERK PS 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER.