HOLTEC CONSULTING PVT. LTD., NEW DELHI V. DCIT, CIRCLE- 11(1), NEW DELHI

ITA 7050/DEL/2017

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 2938 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-02-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 23-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ATAL NINAWAL
• Keywords: Earning of tax free income; Rule 8D
• Section: 143(3); 14A; 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C NEW DLEHI BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER AND SHRI K. NARASIMHA CHARY, JUDICIAL MEMBER ITA NO. 7050/DEL/2017 ASSESSMENT YEAR: 2013-14 HOLTEC CONSULTING PVT. LTD., VS. DCIT, CIRCLE 11( 1), C BLOCK 01-0103, IMPERIAL TOWER, NEW DELHI. COMMUNITY CENTRE, NARAINA VIHAR, NEW DELHI PAN : AAACH0031M (APPELLANT) (RESPONDENT) APPELLANT BY : SH. ATAL NINAWAL, CA RESPONDENT BY: MS. SUNITA SINGH, CIT/DR DATE OF HEARING: 23.02.2021 DATE OF ORDER : 23.02.2021 ORDER PER K. NARASIMHA CHARY, J.M. CHALLENGING THE ORDER DATED 28.09.2017 PASSED BY TH E LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-18, NEW DELHI (THE LD. CIT(A), FOR THE ASSESSMENT YEAR 2013-14, HOLTEC CONSULTING PVT. LTD.(THE ASSESSEE), PREFERRED THIS APPEAL. 2. BRIEF FACTS ARE THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF TECHNICAL AND MANAGEMENT CONSULTANCY. FOR THE ASSES SMENT YEAR 2013- 14, THEY FILED THEIR RETURN OF INCOME ON 29.11.2013 DECLARING AN INCOME OF RS.29,96,84,870/-. ASSESSMENT U/S. 143(3) OF THE INCOME-TAX ACT (THE 2 ACT FOR SHORT) WAS, HOWEVER, COMPLETE BY ORDER DAT ED 26.02.2016 DETERMINING INCOME AT RS.33,09,42,326/- BY MAKING A DDITIONS OF RS.2,22,74,011/- ON ACCOUNT OF DISALLOWANCE OF PAYM ENTS MADE TO DIRECTOR AND A SUM OF RS.89,83,445/- U/S. 14 OF THE ACT READ WITH RULE 8D OF THE INCOME-TAX RULES. 3. WHEN THE ASSESSEE PREFERRED APPEAL, BY WAY OF IM PUGNED ORDER, LEARNED CIT(A) GRANTED RELIEF TO THE ASSESSEE IN RE SPECT OF DISALLOWANCE OF RS.2,22,74,011/-, BUT CONFIRMED THE ADDITION MADE U /S. 14A READ WITH RULE 8D. THE ASSESSEE IS, THEREFORE, AGGRIEVED BY S UCH AN ORDER AND PREFERRED THIS APPEAL STATING THAT SUCH A DISALLOWA NCE BY INVOKING SECTION 14A READ WITH RULE 8D IS NOT SUSTAINABLE. 4. LEARNED AR SUBMITTED THAT THE AUTHORITIES BELOW FAILED TO ANALYSE THE NATURE OF INVESTMENT AS TO WHETHER THE INVESTME NT IS YIELDING TAXABLE INCOME, EXEMPT INCOME OR NO INCOME AND THAT THE SAT ISFACTION REGARDING THE INCORRECT AMOUNT DISALLOWED BY THE ASSESSEE WAS NOT RECORDED BY THE ASSESSING OFFICER. HE, HOWEVER, SUBMITTED THAT FACT S & CIRCUMSTANCES AND QUESTIONS OF LAW INVOLVED THIS YEAR ARE IDENTICAL T O THE ONES INVOLVED FOR THE ASSESSMENT YEARS 2009-10, 2010-11 AND 2011-12, IN WHICH YEARS, A COORDINATE BENCH OF THIS TRIBUNAL IN ITA NO. 4563/D EL/2012 FOR ASSESSMENT YEAR 2009-10, 1057/DEL/2014 FOR A.Y. 201 0-11 AND 2148/DEL/2015 FOR A.Y. 2011-12, RESTORED THE ISSUE BACK TO THE FILE OF ASSESSING OFFICER TO CONSIDER THE ISSUE AFRESH IN T HE LIGHT OF OBSERVATIONS MADE IN ITA NO. 4563/DEL/2012 FOR ASSESSMENT YEAR 2 009-10. LEARNED AR PRAYED THAT THIS ISSUE FOR THIS YEAR MAY ALSO BE RE STORED BACK TO THE FILE OF ASSESSING OFFICER TO CONSIDER THE SAME IN CONSONANC E WITH THE VIEW TO BE TAKEN FOR ASSESSMENT YEAR 2009-10. 3 5. IN VIEW OF THE ADMITTED POSITION THAT THE FACTS AND CIRCUMSTANCES INVOLVED FOR THIS YEAR ARE IDENTICAL TO ONES INVOLV ED IN ASSESSMENT YEARS 2009-10, 2010-11 AND 2011-12, IN WHICH THE ISSUE WA S RESTORED TO THE FILE OF ASSESSING OFFICER TO TAKE A FRESH VIEW IN THE LI GHT OF DIRECTIONS GIVEN IN ITA NO. 4563/DEL/2012 FOR ASSESSMENT YEAR 2009-10, WE ARE OF THE CONSIDERED OPINION THAT THE REQUEST OF THE ASSESSEE CAN BE ACCEPTED. WE ACCORDINGLY, WHILE SETTING ASIDE THE IMPUGNED FINDI NGS OF THE AUTHORITIES BELOW, RESTORE THE ISSUE TO THE FILE OF ASSESSING O FFICER TO DECIDE THE SAME IN THE LIGHT OF THE VIEW TO BE TAKEN FOR EARLI ER ASSESSMENT YEARS. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER WAS ANNOUNCED ON CONCLUSION OF VIRTUAL HEARIN G IN THE PRESENCE OF BOTH THE PARTIES ON THIS THE 23 RD DAY OF FEBRUARY, 2021. SD/- SD/- (R.K. PANDA) (K. NARASIMHA CHARY) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 23/02/2021 AKS