SMC Global Securities Ltd., New Delhi V. JCIT, Special Range 8, New Delih

ITA 7816/DEL/2017

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 0325 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-01-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2013-2014
• Appeal Filed On: 27-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 11; 14A; 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “G” NEW DELHI (Convened through Virtual Court) BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER आयकर अपील सं./I. T. A. No. 7816/ Del /2017 ( नधा रण वष / As s es s ment Yea r : 2013-14) S M C G l oba l S e c uri t ie s Lt d. 11 / 6 B , S ha nt i Ch a mbe r, P us a Roa d, N e w D e l hi -11 00 05 बनाम/ V s . J C IT S p ec i a l R an ge -8 N e w D e l hi थायी लेखा सं./जीआइआर सं./P A N / G IR N o . : A A A C S 0 5 8 1 R (अपीलाथ /Appellant) . . ( यथ / Respondent) अपीलाथ ओर से /Appellant by : Shri Salil Kapoor, Advocate Shri Sunil Lalwani, Advocate यथ क ओर से / Respondent by : Shri Umesh Takyar, Sr. DR स ु नवाई क तार ख / D a t e o f H e a r i ng 23/12/2021 घोषणा क तार ख /D a te o f P r o n o u nc e me n t 11 /01/2022 आदेश/O R D E R PER PRADIP KUMAR KEDIA, AM: T he c a p t i on e d a pp e al h as b ee n fi l e d a t t he i ns t a n c e o f t he a s s es s e e a ga in s t t he or de r o f th e Co m mi s s i on e r o f In c o m e T a x (A p pe a l s ) -2 8, N e w D el hi ( ‘C I T (A ) ’ i n s ho r t ) , da t e d 1 6. 10 . 20 1 7 un de r 1 4 3 (3 ) o f t h e Inc o m e T a x A ct , 19 61 ( t he A c t ) c onc e r ni ng A . Y . 2 013 - 1 4. 2. A s pe r i ts g r ou n ds o f a pp ea l t he a s s e s s e e h as c ha ll e n ge d t he di s a l l ow a nc e o f Rs . 96 , 85, 00 3 / - ma d e by t he A O u /s . 14 A r. w . r. 8 D o f th e IT A T R u l e s . 3. Wh en th e m at t er w a s c al l e d f or h e a ri ng, t h e Ld . C ou ns e l fo r t he as s e s s ee po i n t e d o ut t ha t t he as s e s s ee ha s mov ed a dd it i on a l gr o un d o f a p pe al u nde r R u l e 1 1 o f t h e I T Ru le s ( Inco m e Ta x I TA T Ru le s , 196 3 ) w he r e by a s p er g ro un d N o. 5 t he r e i n t h e a s s es s e e ha s s ou g ht r el i e f f ro m d is a l l o w a n c e u/ s . 14A o n th e gr ou nd t ha t on ly t hos e i n ve s t me nt a r e t o b e c on s i d e re d for c o nc lu di ng a v e ra g e v a l ue o f i n v es t me nt w h i c h yi e l d e d e x e m p t i nc o me dur i n g t he y ea r. I t w as s ub mi tt e d th at t h e i s su e i nv o l v e d i s pu re l y l e ga l in na t u re a nd a ri s e s fr o m t he fa ct s o n r ec o r d an d c ons e qu e nt ly ur ge d f or i ts a d m is s i o n a nd d is p os al a t th e th r es h ol d. Co n s id e ri ng t h e f or ce i n t h e s ub mi s s io ns m a d e by t h e as s e s s ee fo r a d mi s s i on o f the a d d i t i ona l gr o un d s , w e ad mi t t he ad di ti on a l gr ou n ds fo r ad ju dic a t i o n . 4. We h a v e c o ns i d e r e d t he r iv al s u b mi s s i ons o n t he i s s ue i nv o l v e d a n d h a v e p er us e d t he or de rs o f t h e l o w er au t h o ri t i e s . A s pe r t he ad d i t i o na l g rou n d N o. 5 o f t h e a s s e ss ee ’s a ppe al , t h e a s s es s e e ha s c on te n de d ha v i ng re g a r d t o t he j udi ci a l i n t e r p re t a t i o n f o r t he pu r po se s o f di s a l l ow a n c e u / s . 1 4A r. w . r. 8 D of t h e Ac t , t he i nv e s t me n t s w hi ch di d n ot y i el d an y e xe mp t i n c o m e du ri ng th e ye ar a re r e q u i r e d t o b e e xc lu de d a n d on l y t h o s e in ves t m ent a re t o be c ons i de re d for a v e ra g e v al ue o f i n v e s t me n t w hi c h y ie l d ex e m p t i nc o me du r i ng t he yea r. We fi n d t h a t th e a fo re s a i d p r o po s it i o n i s du l y s u pp or te d b y t he d e ci s i on o f t he S p ec i a l B e n ch in A CI T V s . V i re e t In ve s t me nt P r iv a t e L i m i t e d ( 2 0 1 7) 1 6 5 I T D 27 ( D e l ) (S B) . S i mi l ar vi e w h as be en e x pr es s e d by c oor di n a t e B en c he s in c l u di n g S hi v N a r a y a n N e m a ni S ha re s a n d S t o c k Br ok e rs (P ) L td . V s. C IT (2 0 21 ) 13 2 t a x ma n n . c o m 2 44 (M u mba i ). Th e a d di t i o nal gr ou n d i s a cc or di n g l y ad ju di c a t e d i n fa vo u r o f t h e as s e s s ee . 5. It w as s ub mi t t ed on b e h a l f o f t h e as s e s s ee th at o nc e t he gr o un d N o. 5 o f t h e a ddi t i o n al gr ou n d o f a p p e al i s adj ud i c a t e d i n fa v o u r o f t he a s s e s s ee , t he gr ie v a n c e ra is e d a s p er ot he r gro u n ds in t he a pp ea l m e m o a nd t h e a d d it i o na l g r ou n d me mo c e ase s t o e x i s t . H e nce , i n v i e w o f t he s ub mi s s io ns m a de on be ha l f o f th e a s s es s e e , ot h e r g r o un d s c o n c e rn i n g o t h e r a s pe ct s of d i s a l l ow anc es u/ s . 14A a re di s mis s e d a s i n f ru c tu o us . 6. T he o r d e r o f t h e CI T (A ) i s s e t a s i d e a nd t h e m a tt e r i s r es t or e d ba c k t o t he fi l e o f t he A O fo r qu a nt i fi ca ti o n o f t he d i s a l lo w a nc e un de r s . 14A q u a t h e i n ve s t me nt s w hi c h h a v e y i e l d t ax fr e e i n c o m e a lo ne . 7. In t h e re s ul t , t h e a p pe al fi le d by th e a s se s s e e i s al l ow e d for s t at i s t i c a l pu r p os e s . 8. T he a b o v e d ec i si o n w a s pr on ou nce d on c o n cl us i o n o f v i rt ua l he a ri ng i n t he o p e n c ou r t o n 2 3/ 1 2 / 2 0 2 1. Sd/ - Sd/- (C.N. PRASA D) (PRADI P KUMA R KEDI A) JUDI CI AL M EMBER ACCOUN TANT M EM BER Dated: 11/01/2022 *Neha* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI Date of dictation Date on which the typed draft is placed before the dictating Member Date on which the typed draft is placed before the Other Member Date on which the approved draft comes to the Sr. PS/PS Date on which the fair order is placed before the Dictating Member for pronouncement Date on which the fair order comes back to the Sr. PS/PS Date on which the final order is uploaded on the website of ITAT 11.01.2022 Date on which the file goes to the Bench Clerk Date on which the file goes to the Head Clerk