ITO, Ward- 10(4), New Delhi V. Gyansagar Buildtech Ltd., New Delhi

ITA 7739/DEL/2017

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 6414 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 1 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-02-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 26-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A Y CHALLENGING
• Keywords: Earning of tax free income
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES C : DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI B.R.R. KUMAR, ACCOUNTANT MEMBER ITA.NO.7739/DEL./2017 ASSESSMENT YEAR 2014-2015 THE INCOME TAX OFFICER, WARD 10 (4), NEW DELHI. [ VS. M/S. GYANSAGAR BUILDTECH LTD., M-62 & 63, 1 ST FLOOR, CONNAUGHT PLACE, NEW DELHI110001 PAN AAECG1661J ( APPELLANT ) (RESPONDENT) F OR REVENUE : SHRI PRAKASH DUBEY , SR.DR FOR ASSESSEE : SHRI NIPPUN JAIN, C.A. DATE OF HEARING : 18 . 01 .20 2 1 DATE OF PRONOUNCEMENT : 01 . 02 .20 2 1 ORDER PER BHAVNESH SAINI, J.M. THIS APPEAL BY REVENUE HAS BEEN DIRECTED AGAINST THE ORDER OF THE LD. CIT(A)-4, NEW DELHI, DATED 17.10.2017, FOR THE A.Y. 2015-2016, CHALLENGING THE ORDER OF THE LD. CIT(A) IN DELETING THE ADDITION OF AN AMOUNT OF RS.2,86,85,018/- UNDER SECTION 14A OF THE I.T. ACT, 1961. 2 ITA.NO.7739/DEL./2017 M/S. GYANSAGAR BUILDTECH LTD., NEW DELHI. 2. WE HAVE HEARD THE LEARNED REPRESENTATIVES OF BOTH THE PARTIES THROUGH VIDEO CONFERENCING AND PERUSED THE MATERIAL AVAILABLE ON RECORD. 3. IN THIS CASE, THE A.O. MADE DISALLOWANCE OF THE IMPUGNED AMOUNT UNDER SECTION 14A OF THE I.T ACT, 1961. THE ASSESSEE SUBMITTED BEFORE THE LD. CIT(A) THAT ADDITION IS WHOLLY UNJUSTIFIED BECAUSE THE ASSESSEE HAS NOT EARNED ANY EXEMPT INCOME IN ASSESSMENT YEAR UNDER APPEAL. THE ASSESSEE RELIED UPON THE JUDGMENT OF THE HONBLE DELHI HIGH COURT IN THE CASE OF CHEMNIVEST LTD., VS., COMMISSIONER OF INCOME TAX 378 ITR 33 IN WHICH IT WAS HELD THAT SECTION 14A OF THE I.T. ACT WILL NOT APPLY IF NO EXEMPT INCOME IS RECEIVED OR RECEIVABLE DURING THE RELEVANT PREVIOUS YEAR. THE LD. CIT(A) FOLLOWING THIS DECISION OF THE HONBLE DELHI HIGH COURT, DELETED THE ADDITION. 4. AFTER CONSIDERING THE RIVAL SUBMISSIONS, WE ARE OF THE VIEW THAT THE ISSUE IS COVERED BY THE AFORESAID JUDGMENT OF THE HONBLE DELHI HIGH COURT IN THE CASE OF CHEMNIVEST LTD., (SUPRA), THEREFORE, LD. CIT(A) RIGHTLY DELETED THE 3 ITA.NO.7739/DEL./2017 M/S. GYANSAGAR BUILDTECH LTD., NEW DELHI. ADDITION. THE DEPARTMENTAL APPEALS FAILS AND IS ACCORDINGLY DISMISSED. 5. IN THE RESULT, APPEAL OF THE REVENUE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (B.R.R. KUMAR) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DELHI, DATED 01 ST FEBRUARY, 2021 VBP/- COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT(A) CONCERNED 4. CIT CONCERNED 5. D.R. ITAT C BENCH, DELHI 6. GUARD FILE. // BY ORDER // ASSISTANT REGISTRAR : ITAT DELHI BENCHES : DELHI.